Coming in from the cold

The Indian summer is perfect for most ice-cream makers. With heat rising even at the beginning of the monsoon months, Amul could not have chosen a more perfect time for the launch of Rich Crème, its ‘super premium’ ice-cream. Hindustan Levers’ Magnum range has been wooing Indian customers for a while. Mother Dairy came in earlier but has taken it slow and steady with its premium range of ice-creams. With Häagen Dazs and Mövenpick unflinchingly taking on India and China - their largest Asian markets - with ‘super premium’ offerings, most other brands will have to keep up.

Mövenpick’s expansion plans look interesting. All the more so because after entering the Indian market in 2000, the Swiss brand that stands by an ‘all natural’ positioning the world over had to retreat in 2004. Up until 2008, during its silent years in India, Mövenpick had to take a close look at what could hurt its growth.

Partnerships and cold chain infrastructure are vital factors to a brand that attempts to differentiate itself from other super premium ice-cream manufacturers by not “using a whole bunch of chemicals and artificial synthesisers to make the product stable”, according to Mövenpick’s Dennis Koorey, Country Business Manager, Australia.

Since 2008, Mövenpick’s out-of-home business has paved the path for its expansions. Its exclusive store partner and distributor, Star Foods Speciality, was the answer to some of the earlier challenges in India.

“Over the years, through the out-of-home vertical, we’ve enjoyed tie-ups with hotel chains like Taj and ITC. We’ve also had contracts with Grand Hyatt in Mumbai. We were also supplying Mövenpick ice-cream to the Taj West End and Leela Palace in Bangalore. Customers may not know they are being served Mövenpick, but they get to enjoy our offerings,” says Tarun Sikka, Managing Director, Star Foods Speciality.

The launch of a new Mövenpick Ice Cream Boutique in Bangalore marked the move to strategically establish a stronger presence in the country. While its existing retail presence in Chennai and New Delhi will spread, Mumbai will be its next stop.

In forty years, Mövenpick has grown to be served at 300 boutiques throughout Europe, Asia and Australia, while catering to five-star restaurants and hotels in more than 40 countries. Last year, it announced restarting its operations in India through the café model to cater to general consumers.

“It took us a little time to establish the right way forward. We’ve identified the key cities in which we want to grow and make our statement. We will build up in a way that people get to enjoy the Mövenpick experience they would anywhere else in the world,” explains Sikka of Star Foods Speciality.

“Our plan is to have three types of outlets across India. The ice-cream corners and the slightly larger ice-cream parlour, both of which are limited in seating. The ice-cream gallery will be our largest format, and it will be about more than ice-cream,” he says.

In India, across its formats, Mövenpick serves nearly 20 ice-cream and sorbet flavours, ice-cream desserts, gourmet coffee and tea, sundaes, shakes and fat-free refreshments. Koorey claims all its ice-creams for the Indian market are made in Switzerland. And even as Australia and China remain its top two Asian markets, he believes India is not far behind. “China and India are easily our two biggest emerging markets. And interestingly, for the ‘super premium’ category. In China, which may be exploding for us now, consumers are conservative and stick to the chocolate, strawberry and caramel options.

“But in the next five years, India will be head-to-head with our other large markets. People enjoy out-of-the-box flavours and distinctive quality. It’s fantastic to release interesting, wild flavours and creations in markets that are as bold and adventurous as us,” says Koorey.

At Movenpick, prices range from ₹175 for a single-scoop cup to ₹515 for three scoops. For many brands serving the Indian market, their more expensive variants do not account for a significant portion of their annual sales. They remain largely on the good side of a largely price-sensitive consumer base. Mövenpick, on the other hand, while continuing to deal with gaps in cold chain technology and infrastructure, is now playing from a position of strength with only Häagen Dazs for competitive company.

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