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Purvita Chatterjee

Mumbai, Aug . 7 General Mills India is setting up high-end branded cafes for its newly introduced ice cream brand — Haagen Dazs. The company would be initially appointing franchisees to run its cafes under three new formats comprising flagship stores, smaller cafes and kiosks. Haagen Dazs would also be available through the modern trade outlets and food service restaurants across the country.

Mr Arindam Haldar, Director, Haagen Dazs, told Business Line, “Our first branded café will be launched in early 2009. We intend having 35-40 high-end cafes over the next 10 years and will be appointing franchisees for the same. Our stores will be our equity building vehicle for the brand.”

Haagen Dazs will be promoted through its ‘experiential’ cafes which would be providing the ‘Haagen Dazs Moment’ — as it is internationally known. Besides, there would be a host of below-the-line activities such as direct mailers and leaflets to build awareness about the brand in the country.

Attracting steep import duties at 37 per cent, Haagen Dazs ice creams are currently pegged at Rs 185 for 100 ml. “With the launch of Haagen Dazs we are entering the luxury food segment and have to create the super premium ice cream category in the country. We have studied the market and believe that India is now ready for a super premium ice cream brand,” says Mr Haldar.

Of late, there have been super premium ice cream brands such as Movenpick, which has re-entered the country through a distributor. Currently, General Mills has adopted a restrictive distribution strategy for its ice cream brand. Stocking its brand in certain high-end outlets such as Godrej’s Nature’s Basket, Haagen Dazs also has a limited presence in certain 5 star hotels and restaurant chains. Its retail strategy is to go slow initially in its distribution and once its cafes are set up, it would become more aggressive with its retail distribution across the country.

Haagen Dazs is a $1-billion brand worldwide and is the most profitable brand among General Mills’ portfolio of brands. While the brand is already profitable in China (where it was launched nearly 10 years ago), making money on the brand in the Indian market is expected to take time.

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