AMERICAN-based ice-cream and doughnut franchisor Dunkin’ Brands plans to open up to 100 Baskin-Robbins outlets in South Africa over the long term. The group will also launch a Dunkin’ Donuts chain.
Emerging markets, with their burgeoning and brand aspirant middle classes, have become the target of international companies seeking enhanced growth.
Baskin-Robbins has a presence in more than 50 countries outside the US including India, China and Russia. Since it was founded in 1945, it has introduced more than 1,000 flavours including Strawberry Millefeuille, Wild ’n Reckless Sherbert and Peppermint Fudge Ribbon.
Dunkin’ Brands vice-president of international development, Jeremy Vitaro, said last week the growth of the market coupled with South Africa’s population profile offered an opportunity for Baskin-Robbins. “In South Africa, ice cream is primarily known within the confines of supermarkets. There are not many players specialising in hard-scoop ice cream and ice-cream cakes. This is a big and untapped opportunity, designed to suit regional and master franchising .”
The South African ice-cream market will be worth R3.39bn this year, according to research company Datamonitor.
Ola South Africa, a division of Unilever, and Dairymaid-Nestlé have the biggest market share of the South African ice-cream market. Häagen-Dazs has five stores across South Africa and its ice creams are sold at retailers and garage forecourts.
Nasdaq-listed Dunkin’ Brands is in the process of recruiting franchisee partners to develop the Baskin-Robbins brand in South Africa. “We will be very involved from an operations, training, supply chain and field perspective,” Mr Vitaro said.
“First entries would be in Cape Town, Johannesburg, Durban and Bloemfontein. Eighteen months after the roll-out plan of Baskin-Robbins, we will open Dunkin’ Donuts.”
Baskin-Robbins’ first store in South Africa will open next year.
Dunkin’ Brands runs about 473 Baskin-Robbins ice-cream parlours in India through a franchise agreement with Graviss Group. It also has three Dunkin’ Donuts stores in India, and is aiming to open up to 100 over the next five years.
Kahala Corporation, one of the US’s largest franchising companies, is also eyeing Africa through its Cold Stone Creamery ice-cream brand.
It opened an outlet in Nigeria in September last year after signing a master franchise agreement with Ivybridge Trading. It wants to open nine stores in the region over the next five years.
“Expanding into emerging markets is a major priority in Kahala’s development plans,” said Michael McGill, president of Kahala’s international division. The Cold Stone Creamery brand is in several of the world’s largest emerging markets including Brazil, China, Indonesia and Turkey.
Cold Stone Creamery, which operates more than 1,500 locations in 20 countries, differentiates its product by offering smooth handcrafted ice cream. It also sells other ice-cream related products.