Article

Dippin' Dots makes big moves to continue upward growth trend

New products, new markets and new partnerships are in the works for Dippin' Dots as part of a plan to continue the company's explosive growth worldwide.

May 24, 2016 by S.A. Whitehead — Food Editor, Net World Media Group

Dippin' Dots executives are hoping to freeze out their competition with continued growth of the kind they've experienced over the past two years. But the company's executives know better than anyone that their recent growth has not happened by accident. Rather, the company said in a news release, it can be attributed to an intensive focus on building a strong franchisee base, as well as pursuing partnerships and expanding markets that have all been key to their recent success. That's why the brand announced plans for some strong moves for growing both sales and territory.

Dippin' Dots was acquired by Oklahoma City-based private equity firm, Fischer Enterprises LLC, in late 2012. Since then, sales of the company’s core ice cream products have jumped more than 60 percent. In 2016, they're expected to grow another 25 percent, according to a company news release.

"As an iconic brand with strong name recognition and consumer loyalty, Dippin' Dots is the cornerstone of our snack food portfolio,” said Fischer Enterprises COO Scott Fischer. "The flash-frozen beaded ice cream was a groundbreaking product when it was invented more than 25 years ago. Since the acquisition, we have maintained the company's unique brand while making the product more easily available and marketing to a new generation."

Year-over-year franchising revenue grew more than 45 percent in 2015, and the release said the company is already exceeding that pace this year. Franchises have also opened recently in Mobile, Alabama, and Destin, Florida.

 "Our franchise philosophy emphasizes quality over quantity,” said Senior Director of Franchising at Dippin' Dots Franchising, LLC, Steve Rothenstein. "We strive to help our franchisees develop their business over the long term by giving them the resources and expertise they need to succeed. The nearly 50 percent increase in our franchising revenue reflects the profitability of our model for both our franchisees and the company.”  

The release said that the brand's corporate growth springs from a co-branding of Dippin' Dots with kettle-cooked popcorn brand Doc Popcorn in 2014. That co-branding, said the release, allows the company to profit from economies of scale and other benefits of having one outlet that offers options for both sweet and savory tastes.

Co-branded stores now are up and running in Springfield, Missouri, and in Albuquerque, Green Bay, Las Vegas and Chicago, with 15 more to open in 2016 in the U.S. The brand is also being carried in stores like Circle K and 7-Eleven, and has partnered with Fabulous Freddy’s to offer a co-branded product.

The news release said that the company is also growing its large-event market venues such as stadiums, theaters and theme parks. Between 2013 and 2015, Dippin' Dots added 350 such accounts and increased nonfranchise sales 33 percent.

There’s a whole world out there

Besides intense activity in the U.S., Dippin' Dots is moving worldwide. Hankyu Hanshin Holding Group in Japan owns the master license for Dippin' Dots and just last month made initial shipments to Taiwan. The group is also considering a move into China.

"By growing our presence geographically and outside of our traditional outlets, we are appealing to a broader base of customers both in the U.S. and abroad,” said Dippin' Dots Marketing and Sales Vice President Michael Barrette.

And there’s product innovation

Finally, Dippin'Dots is making moves on the product front to promote growth. This summer, the company will introduce Blue Cotton Candy YoDots, which combine the flavor of cotton candy with low-fat frozen yogurt with active cultures for a 110-calorie-per-serving snack. 

About S.A. Whitehead

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Pizza Marketplace and QSRweb editor Shelly Whitehead is a former newspaper and TV reporter with an affinity for telling stories about the people and innovative thinking behind great brands.