Frozen yogurts look for quick meal positioning

Frozen yogurts as a meal option was a strict no-no in India till recently, but not anymore. If companies in this space are to be believed, they are gaining traction as a ‘healthy and quick’ meal. And the trend is catching on in smaller towns too.

Cashing in on this growth is Cocoberry, which started operations in 2009. CEO G S Bhalla says India’s middle class is now warming up to the idea of frozen yogurt as something beyond just an icecream.

Cocoberry is in talks with major corporate houses such as Google, Wipro and TCS to open kiosks in their premises. The company is also spreading the healthy meal concept through a special programme called ‘Cocoberry Healthy Hours’ during which it makes special offers – price discounts or more fruit toppings etc.

The brand has launched a 360 degree communication campaign aimed at encouraging frozen yogurt’s consumption as meals. Cocoberry already has the second largest yogurt chain fanbase on Facebook.

There are others as well. Yogurberry, which has stores in Delhi and Mumbai, offers an extended range of products which include smoothies, parfaits, fruit-bowls, waffles, fruit salads and pro-biotic beverages. Ameer Husain, business head of Raasha Leisure & Entertainment, the franchisee of Yogurberry in India, says “In general, those buying larger cups or parfaits are the ones who are most likely to consume it as a meal rather than dessert. One in every 10 customers opts for a large cup or parfait at our outlet.”

The chain would see 100 to 150 new stores opening across India over the next five years. The group is also looking at major corporate tieups once it scales up its business. Husain adds that they would soon launch Yogurberry in café formats that are ideal for meal consumption.

Realising that consumers require larger servings for a meal, some players are working on packaging. Aparna Pai, marketing manager of Brand Calculus, the franchise holder of Kiwi Kiss in India, says, “We offer big servings called ‘Nirvana’(300 gms) for consumers who want to have it as a meal. We are also opening our parlours in the food courts of technology parks and big corporate houses. ”

She has reasons to feel optimistic. According to a Technopak report, the Indian packaged yogurt market was estimated at Rs 650 crore in 2011 and is growing at a compounded annual growth rate of 18-20 per cent. And selling it as a meal could only expand the market even further.

The latest entrant in the market is US-based Red Mango, which has decided to position it as a healthy meal. Its tag line, “Rethink Lunch!” aims at offering yogurts as an alternative healthy meal. Rahul Kumar, the brands franchisee in India, says, almost 70 to 80 per cent of customers look at yogurts as a healthy nutrient meal option. “In about a fortnight’s time, we can see our peak hours during lunch and snacks time. We generally see a trend — a lot of people come in the morning to have smoothies and parfaits as breakfast. In the evening, people prefer to have yogurts and waffles instead of traditional snacks.”

Red Mango has also started a self vending machine where customers can pay for each gram of yoghurt (it is 89 paisa). Kumar says this of one way of providing freedom to the customer to select whether he wants a light, medium or a heavy meal.