Frosty Boy’s taste solutions keep growing in South America
Frosty Boy Australia’s General Manager Sales and Marketing Felipe Demartini shares his thoughts and insights on ice cream trends throughout South America.
I recently travelled to South America and spent time visiting Chile, Paraguay, Guatemala, Brazil and Mexico and I have to say that I am excited by the sheer number of opportunities for Frosty Boy in these markets.
Historically, South America has always been somewhat protectionist in their outlook to the import market, and the result has been a market dominated by similar products. For example, nearly all fast food players offer two main flavours: vanilla and chocolate and even though McDonalds Brazil are now offering dolce de leche - a richer and creamier version of caramel flavoured soft serve – the limitations of taste solution innovation and creation can be attributed to brand loyalty, cost of equipment and competition.
Fast food chains are very strong in South America and the soft serve market, in particular, is a highly concentrated market with numerous fast food chains competing for clientele. Customers however, are very loyal to their favourite chain and are happy to pay for high price point products because of the positive associations that they have with their preferred brand. This also holds true for milkshakes and milk-based beverages, and recently Burger King and McDonalds engaged in a fierce advertising battle for their share of market.
Indulgence is also very high on the South American radar with locals preferring very sweet and creamy desserts. Chocolate fudge and dolce de leche are widely used and, in most cases, when ordering a sundae at a fast food store staff will ask customers if they would like additional toppings or sauces to this already very sweet dessert treat.
Further to this penchant for sweet treats, dessert kiosks have exploded across the country. These kiosks are a real synergy between strong fast food brand awareness and the South American love for desserts. Walk into any shopping centre in Brazil, at any time of the day, and fast food dessert kiosks will have a huge queue of customers lined up waiting for a sweet treat. Their small footprint also turns sales of a highly profitable product into a real profit spinner solution for these fast food chains. Indeed, some shopping centres will have one food store with up to three desserts kiosks for each fast food brand.
Small operators are slowly getting into the soft serve business as well, although the equipment cost is a significant biggest barrier which is exacerbated by unstable electricity supply which can be cut off anytime for hours, if not days, at a time.
The fact remains that we are well in Latin America because of our understanding of this market and our ability to custom design solutions for different tastes, markets, customers and clients. Additionally, we have significant expertise servicing clients around the world even when our head office is Australian based.
Frosty Boy looks forward to sharing our expertise and innovation capabilities in these expanding markets with our flavour solutions. I regularly travel the globe and there are so many new tastes that we hope to bring to the South American market.
Frosty Boy specialises in providing frozen dessert and beverage solutions from local taste profile formulation, in store operations, menu ideation and ongoing marketing and innovation support.
To discuss how you can incorporate Frosty Boy’s products into your business, email Felipe Demartini on Felipe@frostyboy.com.au