Häagen-Dazs plans expansion in Philippines

MANILA, Philippines—Premium ice cream Häagen-Dazs, a unit of US-based global food giant General Mills Inc., has unveiled plans to expand more rapidly in the Philippines, particularly by making use of the franchising route.

In a press statement, Häagen-Dazs regional marketing director Trevor Pickard said local General Mills subsidiary HD Marketing and Distribution Philippines Inc. would spearhead the expansion program, which was meant to double the company’s ice cream shop network in Metro Manila through franchising as well as the opening of company-owned outlets.

The company is initially looking at adding five to 10 more Häagen-Dazs shops to the existing 10 shops in the metropolis, said Haagen-Dazs shop operations manager Vega Atienza. But the greater focus would be to tap business partners for franchising, she said.

“Häagen-Dazs created the luxury ice cream market and we’re now gearing up to bring this premium indulgence closer to our patrons by opening more shops throughout Metro Manila,” Pickard said, adding that this was part of an Asian rollout program.

Atienza said Häagen-Dazs would continue to target shopping malls frequented by its target market: dynamic young professionals and families.

“Our shops can be presented in various formats to deliver the best Häagen-Dazs experience to consumers. Outlets can be a full-menu café, a dip-shop or kiosk, to as small as a FISO (fit-in, stand-out) stall,” she said.

Atienza said café outlets could offer up to 24 flavors of super-premium ice cream, an extensive selection of indulging ice cream creations and cakes as well as invigorating beverages. Dip shops or kiosks will primarily serve take-away items, but can also carry the same range of flavors as cafes. On the other hand, FISOs will be serving only pre-packed items such as stickbars, minicups and pints.

“While our products are top shelf ice cream creations, the cost of opening a Häagen-Dazs outlet is actually not prohibitive,” said Atienza who explained that franchise costs were comparable to those of many fast-food chains.

Franchise fees range from P100,000 (for FISOs) to P1 million (for cafes and kiosks), while capital expenditures will range from P1 million (for FISOs) to P3 million (for kiosks) and up to P9 million (for cafes).