VEIKKO Ice Cream in France

Before talking about the possibility to bring this ice cream company whose name is Veikko, we will explain a little more about the French situation on the main market that can make really good success but also some fail, effectively if you don’t get every necessary information that we are going to give you in our presentation you can get some trouble to launch your business.

Ice Cream Introduction:

Ice exists in one form or another since hundreds of years.We can perceive ice creams and sorbets. Ice cream is a frozen treat, sweet and creamy so popular today. It has increased rapidly after 1846.

According to the invention of the ice cream freezer first crank U.S... Long times ago ice cream was first made with frozen wine and other beverages. It was mostly eaten by the very wealthy people, because it was difficult to get ice and, of course, to keep it!

The sorbets, unlike cream ice, do not contains cream, milk or egg yolk, are prepared from a fruit puree or juice with an added sugar syrup and water.

Today you can find Ice in every super-market, restaurants, and of course ice cream shop, they are a real big choice and different brands.

What about the demand in France?

According to a survey, the consumption of Ice cream around the world, which is not from warm countries consume more, but countries that prefer vacation and have good distribution circuit, and a good knowledge of conservation technique.

The French market ice cream has a significant potential for development with 6 liters per person per year, the French are widely lagging behind the Italians (11.2 liters) and Sweden (12.3 liters).

On the French ice cream market, whose turnover grew 2%, but volumes were down 1%, the labels are losing ground, but still in the lead position with 39.8% market share on the shelf.

A decline due to a lack of innovation, and competition more and bigger with many innovations.

Ice Cream market was around 360 million litters consummated in 2011, which representing a turnover bigger than 1 billion euros.

More precisely, 100 million litters are consummated on the street, so that’s represent nearly 27 percent of the global French consummation.

In France they are 4 king of different consummation:

1. The first one which is the most important is on the street, like when you’re walking and you buy one in a shop, that’s representing 53 % of the global consummation.

2. The Second one is when you buy big boxes of ice cream in a super market, it should be bigger than 500 ml, and it’s representing 35 % on the market.

3. The third one is when you buy a big peace of ice cream to share with your family, like a cake for a Sunday, or for an event, it’s almost 6 % of the global market.

4. To finish with the last one, which is also about 6 percent, it is the smaller one that you can buy in a super market also like the small boxes that you can eat when you finish your lunch…they are individual ones and this is why it’s not mix with the third one.

It’s a compulsory market, which consummation stay really slow during 10 months, and where 55 % of the consummation is based on 8 weeks.

That’s one of the reason why company like Nestlé, which are one of the leader are always making some innovation and trying to produce new product which can be eat every day during the year, no matter the weather…

Now we will see about the market environment:Before starting to introduce our point of view about the possibility to introduce Veikko in France, we thought that it could be great to give you more information about the leaders of the market, and at least all the difficulty that will get a new entering ice cream company on this market.

So as we can see on this graphic, we get four differents leaders on this market, that’s really important, and maybe it can let think that it will be hard to introduce a new one, effectively today every consumers in France know one of this firm, and for sure when you have to buy something, you always choose a product that you know, most likely the one you’re sure to be satisfied.

Actually less and less classic ice cream is sailed on the market, causes from the numbers of innovation that we can notice during the few last years.

We can talk about 6 big ones which are changing the rules of this market;

1. Packaging innovation, effectively now consumers choose their product with the packaging when they don’t get any idea about what they are buying, so if you are new on the market you have to find something really different.

2. Tasty innovation, more and more new savors are appearing on the market, and consumers like try something different, they need always more to be satisfied. So if you don’t pay attention about this point, others company will do it for you and crush you.

3. The product conception is also one factor of innovation, even if it’s not changing the savors, it’s like packaging people are more attracting by color ice cream that just a simple black or white one.

4. New product which are appearing on the market; effectively this kind of ice cream which contain less sugar and calories but more fruits and proteins get a really good success in France, and maybe Veikko have to look after this point because here in Argentina people don’t care about their health, but in France many people do.

5. New product function which is coming in United States; it’s kind of medicinal products which can permit to children to combat nausea and other stomach pains. It’s also a fact that shows us you need some innovation to stay at your best level.

6. Celebration innovation; it’s like Log Raimo Glacier was made as log dream for Christmas 2012. It combines the strength of a chocolate shell with 65% cocoa sweetness of a perfect praline mixed the famous vanilla ice cream and chocolate milk that made the reputation of Raimo Glacier. All tasty and creamy based on a thin layer of sponge cake home.

Our Point of view about an installation of Veikko in France:

Ok, so that’s just our idea and maybe it’s not the reality.The fact is also that the presentation was really short and not really dynamic, but also the fact that we don’t get all the information about the company and so it will be hard to say.

For us it will be really hard for a company which didn’t start a really long time ago to go in France and get a success.

One of the first reason is that’s the brand is not famous, I have talked with some people who lives there and they don’t know anything about this brand, maybe because of the lack of marketing.

The second main reason is that in France, people use to consume products that they know, and they don’t change easily of products, remember that they are already four big company well implemented in France and which are owning the market.

The third point is for us that here the weather is really cool and so you can sale ice cream in the street during a long time, but in France it’s not the same and if you don’t have some substitution product you will get a lack of consumers.

To finish our last reason is the power of the company, because all the company who are working in France get their own products and they don’t need assistance, that’s why they can produce just the quantity that they know.

Justine Surel / Paul Pocouet / Thomas Collet / Théo Molhant / Jacques Jaffary/ Niku Sourulhati / Daniel Kordt