NEW LAUNCH | Cocoberry soon to announce FMCG products, to open 200 outlets

10 outlets are already in line and will be opened soon, covering Srinagar, Dimapur, Nagaland, Kolkata, and Faridabad.

The frozen yoghurt chain Cocoberry is expanding into the FMCG sector. The products are right now in stealth mode and will be launched in Q3 2022. The company wants to expand to 200 outlets in India, mostly company-owned. The company is expanding after a decade of operations in Delhi NCR while having a very strong and retained customer base. There are 10 outlets that are already in line and will be opened soon, covering Srinagar, Dimapur, Nagaland, Kolkata, and Faridabad. Launched in 2009, Cocoberry specialises in frozen fresh yoghurts and also offers beverages, sandwiches, and more.

“An acquired taste strategy is adopted and the outlet is opened to its customers. Once they begin to flow, a basic market activation and a successful launch are undertaken. Month on month, growth is recorded,” Laksh Yadav, CEO, Cocoberry India commented.

Yadav informed that the brand is showing better response in tier 2 cities as well. “If I compare to Delhi NCR, Mumbai, Bengaluru, for a brand that resides in South Delhi and in a niche area of Delhi, Gurgaon, or Noida, we have been further working in Srinagar, Kanpur, and Jamshedpur, and right now we are opening in Dimapur and Kolkata as well” he added. The company is working with a lot of tier 2 cities, and they are showing a good response.

India's frozen dessert market is projected to grow at a CAGR of over 19 percent by 2023, on the back of rising GDP per capita and growing demand from expanding middle-class population.

While choosing locations, Yadav stated that with a vision for each outlet to perform for a longer time, the company purposely give up on the mall location because of the management changes, the rental changes etc. “I would say the first thing we look for is a good high street in a good residential area, and that is how we get good retention. For example, I would prefer GK1 market over Saket mall,” he added.

For each outlet to reach its break-even point it takes roughly around 18 to 24 months, rentals being the major factor. “For a franchise to break even, since our capex is quite low compared to the other brands, I have to compare them with any other brand. That is the only way a franchise would understand,” he commented.