March 2013 - National Ice Cream Retailers Association

MARCH 2013 - $25.00
National Ice Cream Retailers Association
SUPPLIER MEMBER
SPOTLIGHT
COMMODITY AND
DAIRY PRICES IN 2013?
by Andrew Jones
Lloyd’s of Pennsylvania
The off season conventions are
coming to a close and Punxsutawney Phil did not see his
shadow this year, conclusively forecasting an early Spring, so
dust of your business models and lets look at what might be
in store for the 2013 ice cream season. I emphasize might,
since the Global economy, politics and Mother Nature have
made it difficult to predict much of anything lately in the
food sector. Fifteen years ago, who would of thought that
a major portion of our corn supply would be utilized as
fuel, or that changes in our weather patterns would directly
impact products heavily used in the frozen dessert industry?
Specifically, cocoa bean supplies were negatively impacted
by dry weather starting in 2007 and the Vanilla industry was
greatly impacted by Cyclone Hudah in 2000 destroying major
parts of Madagascar, the second largest growing region in
the world. Thank you George Lochhead for your article! So,
let’s all work on our Ying and Yang, utilize the works of Fung
Shui (Fung Shway) and try to project a calm year ahead.
IN THIS ISSUE
Commodity and Dairy Prices in 2013
by Andrew Jones, Lloyd’s of Pennsylvania............1
Butter Prices........................................................................2
Scholarship Winner Says Thank You..................................3
New Active Members.........................................................4
Grand Reopening of Chocolate Shoppe.............................4
34th Annual 2013 Sigep Trade Show
Fiera Rimini, Italy
by Tom Treischmann & Donna Domiano
Fabbri North America.............................................6
Effective Sampling
by Steve Christensen...............................................8
2013 Officers, Board Members & Supplier Officers.........12
growing cheese market and steady butter demand. Assuming
predictable demand, the main variable to cause a shift in
price is production, which can be impacted by; the number of
total farmers, total herd count, weather (drought/flood), feed
costs, per cow milk productivity and many other factors.
We’ll focus on the following markets:
1. Milk
2. Butterfat/Butter
3. MSNF - Milk Solids Non Fat (Non Fat Dry Milk)
4. Sugar
5. Cocoa
6. Corn
In 2012 we witnessed severe drought conditions throughout
the middle of the country, which drove up feed costs and
reduced per cow milk production resulting in decreased
supply driving up cost. By the end of the year we did show
promise with milk production catching up and surpassing
output from the same time period in 2011. Considering that
we are still in a catch up period, all indicators point to the
2013 dairy markets being elevated against the previous year
and this will translate across all of the raw materials (Milk,
Skim Milk, Butter, Non Fat Dry Milk, Etc). Barring any
unforeseen disasters or windfalls, most experts are indicating
a 10-16% increase in dairy derived raw materials.
Milk, Butterfat/Butter, MSNF
The supply and production of raw milk, specifically cow
milk in the United States, balanced by consumers demand
for dairy products is the fundamental engine that drives the
economics for the first three raw materials significant to our
industry. Total demand for dairy products has risen slightly
faster than population growth the past 30 years, documenting
declines in fluid milk sales, but outweighed by the ever
SUGAR - Like most agricultural crops, sugar has deep
political roots within the United States and generally
speaking, the cost for sugar (sucrose) is dramatically higher
then the rest of the worldwide market. This is linked to high
tariffs that are imposed on sugar coming into our country,
ultimately protecting the domestic sugar growers and
processors. The soon to be amended USDA Farm Bill is an
opportunity to modify the tariff rates on sugar, but they have
CALL YOUR NICRA SUPPLIER MEMBERS FIRST
been policy for quite some time and are unlikely to change.
As a side note sugarcane crops supply 80% of the worlds
sucrose and only tolerate warm climates free of frost, while
the remaining 20% is derived from the sugar beet crop, which
does not tolerate heat and enjoys a cooler temperature.
While we saw some easing throughout 2012, the domestic
outlook for sucrose indicates shrinking supply and increased
demand, which would indicate a flattening of additional price
decreases and stabilization for 2013. Sugar should be nice to
the ice cream industry this year!
CORN - Is there anything that can’t be made with corn?
Aside from plain old corn on the cob, we get high fructose
corn syrup, 36 DE, high maltose corn syrup, ethanol and even
plastic containers made with corn. Bottom line, corn will
impact everything from mix, syrups, bases, drinks and candy
pieces. The good news is that the U.S. produces 40% of the
world market. You’re still waiting? Unfortunately, demand
is strong and supply was hurt by the drought in 2012, so like
dairy we are in another catch up period, but more significant.
COCOA - This might be the quiet player for 2013, but it is
long overdue. Starting back in 2007, cocoa costs exploded
and didn’t stop until the end of 2011. 2012 became a period
of stability and reduced pricing has been starting to hit the
market with all indicators pointing to a calm 2013.
To conclude, it looks like this season should deliver stable
food costs and menu pricing at the retail level. If it has been
awhile since you evaluated food costs and pricing, I strongly
urge you to take a sharp look and adjust accordingly. Your
customers will understand, if not even notice a $.15-$.25
increase on an item, but more importantly it will enable your
business to maintain the proper service levels required to
keep and grow your customer base over time!
2013 www.dairy.com
2013 www.futures.tradingcharts.com
BUTTER PRICES
January 25, 2013 - Grade AA Butter finished at $1.5050. The
weekly average was $1.5050. (2012 price was $1.5580)
February 1, 2013 - Grade AA Butter finished at $1.5550. The
weekly average was $1.5350. (2012 price was $1.4980)
February 8, 2013 – Grade AA Butter finished at $1.5550. The
weekly average was $1.5550. (2012 price was $1.4425)
February 15, 2013 - Grade AA Butter finished at $1.6050.
The weekly average was $1.5810. (2012 price was $1.4005)
Support prices for butter start at $1.05. Butter prices are reported from the Chicago Mercantile Exchange every Friday.
The Merc is considered a spot market for butter. Merc prices
are important to dairy farmers because the value of the fat
and fat differentials in raw milk are established from the
prices quoted from the Exchange, and Merc prices are used in
the BFP update.
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2
SCHOLARSHIP WINNER SAYS
THANK YOU
I would like to thank you for selecting me as the recipient of
the Bryce Thomson scholarship. I am putting it to good use
at West Liberty University, where I am currently a biology
major. For the fall semester I made the Dean’s List while
carrying a 4.0. I very much appreciate the scholarship.
Thank you.
Courtney Pyeritz, Page Dairy Mart
Pittsburgh, Pennsylvania
MAKE YOUR PLANS NOW
TO ATTEND
NICRA’s 80th Annual Meeting
& Trade Show
Hilton Frontenac Hotel
St. Louis, Missouri
November 5-7, 2013
NICRA March 2013
CALL YOUR NICRA SUPPLIER MEMBERS FIRST
NEW ACTIVE
MEMBERS
Cottage Garden Creamery
2242 S. Crane View Rd.
North Platt, NE 69101
308/534-3659
Fax: 308/534-3659
Libby Milroy
Ron Green
Doc’s Artisan Ice Creams
1221 W. Warner Rd., Suite 105
Phoenix, AZ 85284
602/909-8246
Fax: 602/618-8719
Doc Brown
MP
Scoops Homemade Ice Cream
840 Bluecrest Pl.
Lake Havasu City, AZ 86406
253/217-8325
www.uptownscoops.com
Kent Hopple
Letawnya Landry
1 WD, DD, YD
Tropical Scoops
49 Finnigan Ave., Apt. K6
Saddle Brook, NJ 07663
914/320-5838
Fax: 201/880-5213
Jermaine Beckford
Shereese Beckford
1 DD
GRAND
REOPENING OF
CHOCOLATE SHOPPE
Chocolate Shoppe Ice Cream has
reopened its historic State Street
location after nearly three months of
extensive remodeling, and is inviting
the community to come explore the
renovations at the grand opening
with ice cream specials, activities and
family entertainment.
Chocolate Shoppe Ice Cream on State
Street, originally named Chocolate
House, was opened by Chuck and
Nancy Deadman as a candy and
homemade ice cream shoppe in 1964.
In 1991, Steve Heaps, who at the time
helped produce the Madison-made
ice cream, became a co-owner of the
shoppe and helped it double in size,
expanding into the adjacent storefront.
Now in 2013, after 48 successful
seasons, this staple of State Street
has received a full floor to ceiling
makeover.
To introduce the fresh interior,
Chocolate Shoppe Ice Cream will be
throwing a Grand Reopening party in
the new space at 468 State Street on
Saturday, March 9th. Ice cream specials
and fun activities for the whole family,
including trivia and free t-shirt dying,
will be available all day.
In addition to the open activities,
co-owner Steve Heaps will attempt
to break an official Guinness World
Record during the grand reopening.
Steve will attempt to earn the title
of fastest scooper by breaking the
record for “most ice cream cones
prepared in one minute,” which is
currently held at 19 by Mitch Cohen
of Baskin Robbins. Over 20 years of
operating the busy downtown shoppe
and scooping through home Badger
games and hot, sunny Saturdays have
given Steve a solid forearm and the
practice necessary to take the record.
Customers and the community are
invited to watch his attempt at 2:00
PM and again at 7:00 PM on Saturday,
March 9th.
For more information and a full
schedule of events, visit the website
at: www.chocolateshoppeicecream.
com/reopening, or call Josh Connelly
at 608/221-8640 or e-mail info@
chocolateshoppeicecream.com.
MAKE YOUR PLANS
NOW TO ATTEND
NICRA’s 80th Annual
Meeting & Trade Show
Hilton Frontenac Hotel
St. Louis, Missouri
November 5-7, 2013
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NICRA March 2013
NICRA March 2013
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34TH ANNUAL 2013 SIGEP TRADE
SHOW - FIERA RIMINI, ITALY
by Tom Trieschmann and Donna Domiano
Fabbri North America
The greatest show on earth wasn’t the 1952 Ringling
Brothers movie starring Charlton Heston. The greatest
show on earth is the Sigep trade show in Rimini, Italy.
Held annually in January, Sigep is considered to be one of
Europe’s largest and most important ice cream, pastry and
confectionery exhibitions.
The 34th International Exhibition for the Artisan Production
of Gelato, Pastry, Confectionery and Bakery (SIGEP) is a
five-day celebration of sweet and savory indulgence. The
Sigep show is unlike any trade show in the USA. 1,000
vendors occupy one million square feet of space in 14
halls with 122,000 trade visitors. Recession, who would of
thought? This year Sigep visitor attendance realized a 10%
increase over 2012 figures. This is an important point that
speaks directly to our industry. An industry that remains
relatively healthy and viable despite uncertain domestic and
global economic issues.
In the exhibition halls at Sigep one of the very first things
noticed is the over the top displays or stands. Numerous
vendor and exhibition stands can be 10,000 square feet or
more. To capture and hold your attention most large stands
embellish themselves with oversized ice cream cones,
animals, fairy tale or cartoon characters and company
products and logos. Stunning presentations of ice cream,
confectionery, pastry, breads, frozen desserts and related
elements results in a fun, almost carnival like atmosphere.
Needless to say, it’s a sight to behold for the first time visitor
or seasoned trade show veteran.
The most fashionable trend at Sigep 2013 was the revival
of an old American classic, the frozen pop! Italians refer
to these frozen and coated treats as “sticks”. The process
is straightforward, flavored ice cream, gelato, sorbet or
semifreddo is piped into a flexible rubber mold, a stick is
inserted and the product is flash frozen. Once the product
is completely frozen the pop is removed from the mold and
dipped into a warm and fluid coating mix and refrozen.
Available in a rainbow of colors and flavors these specially
formulated coatings are designed to harden on contact with
cold or frozen surfaces. While the coating is still soft the
pop can be rolled into or hand decorated with chopped nuts,
candy pieces, flakes, etc.
For the adventurous sweet tooth, pops were made with
fillings that most American palates would probably find as
unusual. Uncommon fillings included hazelnut and cocoa,
Amarena cherry, coconut, gingerbread, pistachio, etc. Other
displays featured pops dipped in more than one coating
creating an artistic two-tone color effect. A few noteworthy
combinations were cherry-white chocolate, pistachio-dark
chocolate and pink-blue cotton candy. Another interesting
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NICRA March 2013
decorating technique using the coatings is to write or
pipe designs onto pre-coated frozen pops. This particular
decorating method simply involves applying contrasting
color in lines or patterns to a portion of the finished pop. For
example, dark chocolate over pistachio, cherry over white
chocolate, white chocolate over dark chocolate, pistachio
over cherry and so forth.
With low raw material and labor costs these distinctive pops
create a marketable and value added option to any menu.
Flexible pop molds are reusable and come in many standard
and unique shapes or patterns. Molds may be found online
from several manufacturers in addition to some specialty
retail stores. The variety of new coatings from industry
producers now offers the end user a diverse selection of
flavors and colors to choose from. So, put away the old
milk, white and dark chocolate coatings that are thin and
easily damaged. And, try out these new thicker, bolder
coating flavors. The potential for developing fresh signature
flavor combinations that sell is limited only by ones own
imagination.
Effective Sampling
by Steve Christensen
I recently connected on a flight through the Chicago O’Hare
airport and came across a very unique sampling technique.
It was the height of cold and flu season and the Advil
Company was sampling their recently launched product of
congestion repair medication. So as you would expect there
was a young lady standing in the concourse handing out
small packets of the drug. Next to where she was standing
however was a tent with 3 massage chairs where individuals
could not only take a load off, but get a free massage as well.
The link was obviously that use of the drug would have
similar relief techniques.
There were literally a line 15 to 20 people long awaiting a
little relief. The hook to the whole program was that now
these consumers will associate the physical feeling of relief
to the Advil product line, and a dedicated customer is born.
GCI magazine states that according to the Promotion
Marketing Association’s Sampling and Demonstration
Council, 83% of consumers agreed that experiencing a
product or seeing it demonstrated live increases their comfort
level when purchasing.
The magazine article further stated that consumers receive
as many as 3,000 advertising messages a day and an
effective sampling program can help a brand stand out in
the crowd. Sampling exposes users of a competitive brand,
as well as new consumers, to the product. These two groups
can diversify a brand’s consumer base while encouraging
brand loyalty, particularly if the consumer had a positive
sampling experience. “If a consumer tries the sample and
subsequently purchases the brand as a result, there’s no
reason to believe the consumer wouldn’t buy the product
again since the experience would be the same,” said Cindy
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CALL YOUR NICRA SUPPLIER MEMBERS FIRST
Johnson, corporate sampling programs manager, Sampling
Effectiveness Advisors (SEA).
sure that the flavors in your case are suitable and legibly
signed.
So how do we as ice cream retailers effectively institute a
sampling program to stimulate our customer’s taste buds and
their wallets?
How Many is Enough – The Serial Sampler
Fortunately for us, we only have a 12 pan case in our store
so we don’t have too much of an issue with the compulsive
sampler asking to taste all of our flavors. That being said,
some stores are displaying up to 39 different flavors of ice
cream at any given time. So how do you react or respond to
the “I want to taste them all” sampler?
Gloves, Spoons and Flavor Signs
You may look at your sample spoons as a non-essential item,
but selecting good quality sample spoons not only appeals
to the customer, but could also keep you under the health
department’s radar. Remember that as with everything there
is a range of price and quality that comes with your spoons
and you do not want splintering wood or plastic in your ice
cream. Select spoons that are strong and rigid, particularly
if your ice cream product is kept at colder temperatures.
Also remember that these people more than likely have not
purchased yet, so a good looking spoon also adds to the
sampling experience. Gelato type colored spoons or molded
wooden serving spoons always look more professional.
Your health department may not mandate the use of gloves,
but it is always a good idea to sample with a gloved hand.
No-one likes to watch the ice cream that you are just about to
serve then pushed onto the spoon with your grubby fingers.
You may not have grubby fingers, but remember - to
the customer, their perception is their reality. Have an
appropriately labeled rubbish or trash container for used
spoons handy.
Have you ever seen someone’s face pucker up because the
vanilla ice cream that they thought they were going to taste
was your super strong lemon sorbet? Customers calling out
flavors by color, is not good sampling practice. Always make
Well there are 2 schools of thought here. You basically
cap out the samples at a certain number or let the customer
sample to their hearts content. Beware here that there is
a fuzzy line between the both as capping the limit to the
amount of flavors that a customer can sample can come off a
little tight and cheap.
Obviously if the same customer comes in three days in a row
you have yourself a little more than a sampling problem.
Have a Signature Flavor
Most ice cream shop owners, particularly those who
make their own ice cream strive to have some unique and
proprietary flavors in the display case at any given time. And
even if you do not make your own ice cream, you should be
inquiring as to whether your ice cream provider can make a
signature flavor unique to your location.
Ours is black raspberry cheesecake. It is a cream colored
cheesecake base with a black raspberry ribbon and chunks of
pie crust layered throughout. Obviously your signature flavor
needs to be unique to your concept. Every sample that we
give away starts with our signature flavor and every tasting
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NICRA March 2013
CALL YOUR NICRA SUPPLIER MEMBERS FIRST
experience starts with this sentence. “Let’s start you off with
our signature flavor. It’s a black raspberry cheese cake that is
to die for”.
Even if some customers don’t like cheesecake most will try
it because it looks so good. If there really is a disdain for
your signature flavor, then feel free to ask the customer “does
anything else grab your eye?”
Once they have turned down one flavor, you don’t want to be
in the situation where you are continually trying to suggest
flavors that may not be palatably suitable. Let the customer
pick something that grabs their eye if your signature flavor
doesn’t do it for them.
Have a Hook Flavor
A hook is something that drags you closer to the core of
whatever you are contemplating.
The term is used in many different industries ranging from
music to fishing. A good hook flavor is one that is the little
more unique than just plain old unique. It might be a flavor
that no one would particularly order two scoops of it on a
cone, but is interesting enough to spark some interest. For
example, every October is National Cucumber month in the
US. That is a great opportunity to dabble in some new flavors
for our hook. Last October we offered a cucumber and mint
sorbet. I don’t recall anyone ordering it in bulk, but it did
spark interest, not only in our shop, but in the community.
We often had customers come in and tell us that their
neighbor or a family friend told them about cucumber sorbet
and they just had to come down as see for themselves.
You obviously won’t dedicate too many pans or buckets to
this flavor; just enough to serve fresh samples from.
The Sample Tray
When sampling up a host of mini spoons simply will not do, I
recommend a “sampler” type product on your menu.
Sampler menu items feature 6 or more mini scoops that
the customer can choose that are either plopped in a cup
or a specialty tray. On a recent visit to Little Baby’s Ice
Cream in Philadelphia, I ordered their version of a sample
tray called the “tasting flight”. The purposely designed tray
had 6 separate and distinct recesses for my mini scoops
which kept them separate for appreciation without the cross
contamination of flavors. I choose mint cookie, coconut chai,
scotch butterscotch, grape grape-nut, almond anise amoretti
and the pizza flavor. Certainly flavors that are so distinct
and original deserve the right to be sampled without the taste
profile of another hogging room on your taste buds. I have
seen this sample platform used in many shops around the US.
It is a great way to create a transaction, and at the same time
introduce many new flavors to your customer’s palate.
Follow these simple rules and who knows, your free
sampling program could net you additional profits.
NICRA March 2013
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2013 NICRA OFFICERS
Nominating Committee
Dan Messer, Eskamoe’s Frozen Custard, Monroe, La.
Convention Committee
Nanette Frey, Frey’s Tasty Treat, Inc., E. Amherst, N. Y.
Membership Committee
Carl Chaney, Chaney’s Dairy Barn, Bowling Green, Ky.
Ice Cream Clinic Committee
Mark Leichtman
Scholarship Committee
Cliff Freund, Cliff’s Dairy Maid
Ledgewood, New Jersey
Web Site Committee
Juergen Kloo, Joy Cone Co.
Hermitage, Pennsylvania
Terms Ending Annual Meeting 2013
Jim Brown, Penn State University, University Park, PA
Mary Leopold, Leopold’s Ice Cream
Savannah, Georgia
Jim Marmion, Advanced Gourmet Equipment
Greensboro, North Carolina
Neil McWilliams, Spring Dipper
Mammoth Spring, Arkansas
John Pitchford, JP’s Custard Cart,
Albuquerque, New Mexico
MISSION STATEMENT FOR NICRA
President
David Zimmermann, Royal Scoop Homemade Ice Cream
Bonita Springs, Fla.
President Elect
Nanette Frey, Frey’s Tasty Treat, Inc., E. Amherst, N. Y.
Vice President
Carl Chaney, Chaney’s Dairy Barn, Bowling Green, Ky.
Secretary/Treasurer
Todd Truax, Almost Heaven, Canton, Ohio
Immediate Past President
Dan Messer, Eskamoe’s Frozen Custard, Monroe, La.
Executive Director
Lynda Utterback, Elk Grove Village, Ill.
Terms Ending Annual Meeting 2014
Valerie Hoffman, Yummies, Warsaw, N.Y.
Jim Oden, Debbie’s Soft Serve, Smithsburg, Maryland
Bob Rada, Stoelting, LLC, Kiel, Wisconsin
Bob Turner, Dairy Corner, Urbana, Ohio
VISION OF THE ASSOCIATION
NICRA will associate with similar associations dedicated to
the same interests. NICRA will facilitate communication and
education that both newcomers and veterans in the industry
desire to be successful. NICRA will maintain a feeling of
family within the association as it grows, and be dedicated
to responsibly managing the association while maximizing
value to the members.
NONDISCRIMINATION POLICY
Terms Ending Annual Meeting 2015
David Deadman, Chocolate Shoppe Ice Cream
Madison, Wisconsin
Cliff Freund, Cliff’s Dairy Maid
Ledgewood, New Jersey
Vince Girodano, Sno Top
Manlius, New York
Juergen Kloo, Joy Cone Co.
Hermitage, Pennsylvania
NICRA is committed to a policy of nondiscrimination in
all of its endeavors. To that end, NICRA shall not tolerate
any words or acts of discrimination, harassment or any
inappropriate behavior in general against any person
affiliated with NICRA, including its members and guests,
with regard to race, sex, color, creed, religion, age, national
origin, disability, marital status or sexual orientation.
2013 SUPPLIER OFFICERS
President
Mary Kircher, Dingman’s Dairy, Paterson, New Jersey
Vice President
Andrew Jones, Lloyds of Pennsylvania, Exton, PA
Secretary/Treasurer
Hank Sweeney, Classic Mix Partners, Neenah, WI
Chairman
Margaret Anderson, Taylor Freezer of New England Norwood, Massachusetts
COMMITTEES AND COMMITTEE
CHAIRMAN
Executive Committee
David Zimmermann, Royal Scoop Homemade Ice Cream
Bonita Springs, Fla.
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The mission of the National Ice Cream Retailers Association
(NICRA), a non-profit trade association, is to be the leader
in the frozen dessert industry that others look to for help,
support and education. NICRA will promote business growth
and development throughout the industry.
This Bulletin is published by:
National Ice Cream Retailers Association
1028 West Devon Avenue
Elk Grove Village, IL 60007-7226
847/301-7500 - Fax: 847/301-8402
Nanette Frey, Chairman Publications Committee
Lynda Utterback, Editor
©2013 National Ice Cream Retailers Association
Vol. 34, No. 3
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cannot find your Username and Password, call the
NICRA office at 866-303-6960 or send an e-mail to info@
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NICRA March 2013