News
Cold Stone: Co-branding, innovations keys to '09 success
January 27, 2010
Over the last year, Kahala Corp.'s Cold Stone Creamery has introduced new products, established co-branding partnerships with complementary brands, and leveraged its brand equity through licensing agreements to heighten brand awareness, drive traffic and ultimately drive industry-leading sales for franchise owners.
Among the initiatives for increased franchise owner profitability, Cold Stone Creamery's co-branding partnerships included:
- Cold Stone Creamery and Tim Hortons Inc. opened 65 co-branded restaurants in the United States and 12 in Canada, designed to leverage the complementary dayparts of each brand's product offering. The companies began 2010 with the opening of a tri-branded store, which includes fellow Kahala Corp. brand Great Steak, at the Naval Station Norfolk (Va.), the world's largest naval base.
- Cold Stone Creamery and Rocky Mountain Chocolate Factory opened 13 co-branded locations, with an additional 50 locations planned to open in 2010, designed to leverage the complementary seasonality of each brand's product offering. The co-branded locations exceeded sales goals for traditionally slower winter months, increasing same store sales by 14 percent.
"We engaged in strategic partnerships designed to create new revenue streams, increase momentum and continue to raise brand awareness," president for Cold Stone Creamery Dan Beemin said a news release. "We implemented aggressive strategies to mitigate potential negative pressure caused by the continued economic downturn and traditionally lower winter traffic. We are pleased that those strategies accomplished our goal and kept our AUVs solid and above industry averages."
Product innovation, licensing agreements
In addition to its co-branding partnerships, Cold Stone Creamery introduced Jell-O Pudding Ice Cream — the industry's first no-melt ice cream — plus Brownie Batter ice cream and ice cream cupcakes. According to the company, the launches are what helped propel double-digit same store sales increases systemwide.
"Last year was a great year for Cold Stone in terms of new products, and we have a schedule for new product innovation in 2010 that will reinvent the standard," Beem said. "As the economy improves, there will be additional opportunities to expand co-branded concepts, create new products and move into new international markets."
Cold Stone Creamery also established licensing agreements and partnerships as a way to leverage Cold Stone's brand equity, create additional revenue streams to invest back into the brand and elevate brand awareness through in-home products. The products include Scoop It Up, a Wii game from Zoo Games, and the Cold Stone Creamery Ice Cream Maker as part of Think WOW Toys' EZ-2 Make line.
Headquartered in Scottsdale, Ariz., Cold Stone Creamery is part of the Kahala holding company, which has a portfolio of 12 quick-service restaurant brands. Cold Stone Creamery operates 1,450 locations in 15 countries.
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