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Cold Stone, Rocky Mountain Chocolate Factory extend co-branding effort
May 10, 2009
DURANGO, Colo. — Rocky Mountain Chocolate Factory Inc. and Cold Stone Creamery have announced the expansion of the companies' co-branding option to several hundred stores nationwide based on the double-digit sales gains posted by the test stores.
Under the terms of an agreement that was announced in October 2008, the two companies agreed to operate a limited number of franchised stores that were co-branded with both the Rocky Mountain Chocolate Factory and the Cold Stone Creamery brands. The Rocky Mountain Chocolate Factory concept was integrated into four Cold Stone Creamery stores, and the co-branded locations have been operating for the past several months.
"We have been very pleased with the performance of the four test stores, each of which has enjoyed a significant increase in same-store sales following the introduction of the co-branding concept," said Bryan Merryman, chief operating officer of Rocky Mountain Chocolate Factory Inc. "This was particularly encouraging in light of the fact that the tests were conducted during the seasonally slow winter months for Cold Stone Creamery retail locations."
Merryman anticipates that several hundred of Cold Stone Creamery's 1,400 U.S. stores could be good candidates for the co-branding effort over the next few years.
"The two concepts are highly complementary in terms of reputation, brand awareness and seasonality, and together create the ultimate dessert destination, which has resulted in double-digit sales increases at co-branded stores," said Dan Beem, president of Cold Stone Creamery. "We see tremendous potential for an extensive co-branding agreement moving forward and literally hundreds of our franchisees have expressed interest in being involved."
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