Gold Coast-based dessert and beverage manufacturer, Frosty Boy Australia, have succeeded where many other exporters have tried and failed – they’ve successfully cracked the Indian market.
India is one of the fastest growing food industries in the world, valued at US$50 billion.
And as ice cream is forecast to achieve a compound annual growth rate of 17 percent until 2021, India was the perfect target for Frosty Boy.
After a four-year work-in-progress, Frosty Boy has finally managed to penetrate the highly competitive market.
The new revenue stream will ensure it continues to achieve a 20 percent year-upon-year growth.
Established in 1976, Frosty Boy Australia produces versatile dessert and beverage powder base solutions for local and international markets.
The company says the solution to navigating the challenging market was to set up manufacturing processes locally in India, while maintaining control of product quality and intellectual property.
This meant Frost Boy avoided import duties of up to 50 percent, which can mean the difference between profit and loss.
Difficult country to crack
One of India’s largest coffee chains, Cafe´ Coffee Day now serves milk shakes using Frosty Boy’s formulated milk shake blend.
“Since Frosty Boy began exporting in 2001, there’s never been a country more difficult to crack than India,” Frosty Boy Managing Director Dirk Pretorius said.
“The main challenges have been import duties, which can be up to 50 percent, a very different business culture to us, plus they are understandably very protective of their own industry.”
The decision to complete manufacturing locally came after intensive knowledge building to ensure the decision would make importing into India viable for Frosty Boy.
“This included our leadership team spending quality time in India to build knowledge of the local QSR industry and how our products could best be implemented, and we have full-time personnel on the ground to support this ongoing,” Mr Pretorius said.