MARCH 2013 - $25.00

National Ice Cream Retailers Association SUPPLIER MEMBER SPOTLIGHT COMMODITY AND DAIRY PRICES IN 2013? by Andrew Jones Lloyd’s of Pennsylvania The off season conventions are coming to a close and Punxsutawney Phil did not see his shadow this year, conclusively forecasting an early Spring, so dust of your business models and lets look at what might be in store for the 2013 ice cream season. I emphasize might, since the Global economy, politics and Mother Nature have made it difficult to predict much of anything lately in the food sector. Fifteen years ago, who would of thought that a major portion of our corn supply would be utilized as fuel, or that changes in our weather patterns would directly impact products heavily used in the frozen dessert industry? Specifically, cocoa bean supplies were negatively impacted by dry weather starting in 2007 and the Vanilla industry was greatly impacted by Cyclone Hudah in 2000 destroying major parts of Madagascar, the second largest growing region in the world. Thank you George Lochhead for your article! So, let’s all work on our Ying and Yang, utilize the works of Fung Shui (Fung Shway) and try to project a calm year ahead.

IN THIS ISSUE

Commodity and Dairy Prices in 2013 by Andrew Jones, Lloyd’s of Pennsylvania............1 Butter Prices........................................................................2 Scholarship Winner Says Thank You..................................3 New Active Members.........................................................4 Grand Reopening of Chocolate Shoppe.............................4 34th Annual 2013 Sigep Trade Show Fiera Rimini, Italy by Tom Treischmann & Donna Domiano Fabbri North America.............................................6 Effective Sampling by Steve Christensen...............................................8 2013 Officers, Board Members & Supplier Officers.........12

growing cheese market and steady butter demand. Assuming predictable demand, the main variable to cause a shift in price is production, which can be impacted by; the number of total farmers, total herd count, weather (drought/flood), feed costs, per cow milk productivity and many other factors.

We’ll focus on the following markets: 1. Milk 2. Butterfat/Butter 3. MSNF - Milk Solids Non Fat (Non Fat Dry Milk) 4. Sugar 5. Cocoa 6. Corn

In 2012 we witnessed severe drought conditions throughout the middle of the country, which drove up feed costs and reduced per cow milk production resulting in decreased supply driving up cost. By the end of the year we did show promise with milk production catching up and surpassing output from the same time period in 2011. Considering that we are still in a catch up period, all indicators point to the 2013 dairy markets being elevated against the previous year and this will translate across all of the raw materials (Milk, Skim Milk, Butter, Non Fat Dry Milk, Etc). Barring any unforeseen disasters or windfalls, most experts are indicating a 10-16% increase in dairy derived raw materials.

Milk, Butterfat/Butter, MSNF The supply and production of raw milk, specifically cow milk in the United States, balanced by consumers demand for dairy products is the fundamental engine that drives the economics for the first three raw materials significant to our industry. Total demand for dairy products has risen slightly faster than population growth the past 30 years, documenting declines in fluid milk sales, but outweighed by the ever

SUGAR - Like most agricultural crops, sugar has deep political roots within the United States and generally speaking, the cost for sugar (sucrose) is dramatically higher then the rest of the worldwide market. This is linked to high tariffs that are imposed on sugar coming into our country, ultimately protecting the domestic sugar growers and processors. The soon to be amended USDA Farm Bill is an opportunity to modify the tariff rates on sugar, but they have

CALL YOUR NICRA SUPPLIER MEMBERS FIRST been policy for quite some time and are unlikely to change. As a side note sugarcane crops supply 80% of the worlds sucrose and only tolerate warm climates free of frost, while the remaining 20% is derived from the sugar beet crop, which does not tolerate heat and enjoys a cooler temperature. While we saw some easing throughout 2012, the domestic outlook for sucrose indicates shrinking supply and increased demand, which would indicate a flattening of additional price decreases and stabilization for 2013. Sugar should be nice to the ice cream industry this year! CORN - Is there anything that can’t be made with corn? Aside from plain old corn on the cob, we get high fructose corn syrup, 36 DE, high maltose corn syrup, ethanol and even plastic containers made with corn. Bottom line, corn will impact everything from mix, syrups, bases, drinks and candy pieces. The good news is that the U.S. produces 40% of the world market. You’re still waiting? Unfortunately, demand is strong and supply was hurt by the drought in 2012, so like dairy we are in another catch up period, but more significant. COCOA - This might be the quiet player for 2013, but it is long overdue. Starting back in 2007, cocoa costs exploded and didn’t stop until the end of 2011. 2012 became a period

of stability and reduced pricing has been starting to hit the market with all indicators pointing to a calm 2013. To conclude, it looks like this season should deliver stable food costs and menu pricing at the retail level. If it has been awhile since you evaluated food costs and pricing, I strongly urge you to take a sharp look and adjust accordingly. Your customers will understand, if not even notice a $.15-$.25 increase on an item, but more importantly it will enable your business to maintain the proper service levels required to keep and grow your customer base over time! 2013 www.dairy.com 2013 www.futures.tradingcharts.com

BUTTER PRICES

January 25, 2013 - Grade AA Butter finished at $1.5050. The weekly average was $1.5050. (2012 price was $1.5580) February 1, 2013 - Grade AA Butter finished at $1.5550. The weekly average was $1.5350. (2012 price was $1.4980) February 8, 2013 – Grade AA Butter finished at $1.5550. The weekly average was $1.5550. (2012 price was $1.4425) February 15, 2013 - Grade AA Butter finished at $1.6050. The weekly average was $1.5810. (2012 price was $1.4005) Support prices for butter start at $1.05. Butter prices are reported from the Chicago Mercantile Exchange every Friday. The Merc is considered a spot market for butter. Merc prices are important to dairy farmers because the value of the fat and fat differentials in raw milk are established from the prices quoted from the Exchange, and Merc prices are used in the BFP update.

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SCHOLARSHIP WINNER SAYS THANK YOU I would like to thank you for selecting me as the recipient of the Bryce Thomson scholarship. I am putting it to good use at West Liberty University, where I am currently a biology major. For the fall semester I made the Dean’s List while carrying a 4.0. I very much appreciate the scholarship. Thank you. Courtney Pyeritz, Page Dairy Mart Pittsburgh, Pennsylvania

MAKE YOUR PLANS NOW TO ATTEND NICRA’s 80th Annual Meeting & Trade Show Hilton Frontenac Hotel St. Louis, Missouri November 5-7, 2013 NICRA March 2013

CALL YOUR NICRA SUPPLIER MEMBERS FIRST

NEW ACTIVE MEMBERS Cottage Garden Creamery 2242 S. Crane View Rd. North Platt, NE 69101 308/534-3659 Fax: 308/534-3659 Libby Milroy Ron Green Doc’s Artisan Ice Creams 1221 W. Warner Rd., Suite 105 Phoenix, AZ 85284 602/909-8246 Fax: 602/618-8719 Doc Brown MP Scoops Homemade Ice Cream 840 Bluecrest Pl. Lake Havasu City, AZ 86406 253/217-8325 www.uptownscoops.com Kent Hopple Letawnya Landry 1 WD, DD, YD

Tropical Scoops 49 Finnigan Ave., Apt. K6 Saddle Brook, NJ 07663 914/320-5838 Fax: 201/880-5213 Jermaine Beckford Shereese Beckford 1 DD

GRAND REOPENING OF CHOCOLATE SHOPPE Chocolate Shoppe Ice Cream has reopened its historic State Street location after nearly three months of extensive remodeling, and is inviting the community to come explore the renovations at the grand opening with ice cream specials, activities and family entertainment. Chocolate Shoppe Ice Cream on State Street, originally named Chocolate House, was opened by Chuck and Nancy Deadman as a candy and

homemade ice cream shoppe in 1964. In 1991, Steve Heaps, who at the time helped produce the Madison-made ice cream, became a co-owner of the shoppe and helped it double in size, expanding into the adjacent storefront. Now in 2013, after 48 successful seasons, this staple of State Street has received a full floor to ceiling makeover. To introduce the fresh interior, Chocolate Shoppe Ice Cream will be throwing a Grand Reopening party in the new space at 468 State Street on Saturday, March 9th. Ice cream specials and fun activities for the whole family, including trivia and free t-shirt dying, will be available all day. In addition to the open activities, co-owner Steve Heaps will attempt to break an official Guinness World Record during the grand reopening. Steve will attempt to earn the title of fastest scooper by breaking the record for “most ice cream cones prepared in one minute,” which is currently held at 19 by Mitch Cohen of Baskin Robbins. Over 20 years of operating the busy downtown shoppe and scooping through home Badger games and hot, sunny Saturdays have given Steve a solid forearm and the practice necessary to take the record. Customers and the community are invited to watch his attempt at 2:00 PM and again at 7:00 PM on Saturday, March 9th. For more information and a full schedule of events, visit the website at: www.chocolateshoppeicecream. com/reopening, or call Josh Connelly at 608/221-8640 or e-mail info@ chocolateshoppeicecream.com.

MAKE YOUR PLANS NOW TO ATTEND NICRA’s 80th Annual Meeting & Trade Show Hilton Frontenac Hotel St. Louis, Missouri November 5-7, 2013 4

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34TH ANNUAL 2013 SIGEP TRADE SHOW - FIERA RIMINI, ITALY by Tom Trieschmann and Donna Domiano Fabbri North America The greatest show on earth wasn’t the 1952 Ringling Brothers movie starring Charlton Heston. The greatest show on earth is the Sigep trade show in Rimini, Italy. Held annually in January, Sigep is considered to be one of Europe’s largest and most important ice cream, pastry and confectionery exhibitions. The 34th International Exhibition for the Artisan Production of Gelato, Pastry, Confectionery and Bakery (SIGEP) is a five-day celebration of sweet and savory indulgence. The Sigep show is unlike any trade show in the USA. 1,000 vendors occupy one million square feet of space in 14 halls with 122,000 trade visitors. Recession, who would of thought? This year Sigep visitor attendance realized a 10% increase over 2012 figures. This is an important point that speaks directly to our industry. An industry that remains relatively healthy and viable despite uncertain domestic and global economic issues. In the exhibition halls at Sigep one of the very first things noticed is the over the top displays or stands. Numerous vendor and exhibition stands can be 10,000 square feet or more. To capture and hold your attention most large stands embellish themselves with oversized ice cream cones, animals, fairy tale or cartoon characters and company products and logos. Stunning presentations of ice cream, confectionery, pastry, breads, frozen desserts and related elements results in a fun, almost carnival like atmosphere. Needless to say, it’s a sight to behold for the first time visitor or seasoned trade show veteran. The most fashionable trend at Sigep 2013 was the revival of an old American classic, the frozen pop! Italians refer to these frozen and coated treats as “sticks”. The process is straightforward, flavored ice cream, gelato, sorbet or semifreddo is piped into a flexible rubber mold, a stick is inserted and the product is flash frozen. Once the product is completely frozen the pop is removed from the mold and dipped into a warm and fluid coating mix and refrozen. Available in a rainbow of colors and flavors these specially formulated coatings are designed to harden on contact with cold or frozen surfaces. While the coating is still soft the pop can be rolled into or hand decorated with chopped nuts, candy pieces, flakes, etc. For the adventurous sweet tooth, pops were made with fillings that most American palates would probably find as unusual. Uncommon fillings included hazelnut and cocoa, Amarena cherry, coconut, gingerbread, pistachio, etc. Other displays featured pops dipped in more than one coating creating an artistic two-tone color effect. A few noteworthy combinations were cherry-white chocolate, pistachio-dark chocolate and pink-blue cotton candy. Another interesting 6

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decorating technique using the coatings is to write or pipe designs onto pre-coated frozen pops. This particular decorating method simply involves applying contrasting color in lines or patterns to a portion of the finished pop. For example, dark chocolate over pistachio, cherry over white chocolate, white chocolate over dark chocolate, pistachio over cherry and so forth. With low raw material and labor costs these distinctive pops create a marketable and value added option to any menu. Flexible pop molds are reusable and come in many standard and unique shapes or patterns. Molds may be found online from several manufacturers in addition to some specialty retail stores. The variety of new coatings from industry producers now offers the end user a diverse selection of flavors and colors to choose from. So, put away the old milk, white and dark chocolate coatings that are thin and easily damaged. And, try out these new thicker, bolder coating flavors. The potential for developing fresh signature flavor combinations that sell is limited only by ones own imagination.

Effective Sampling by Steve Christensen I recently connected on a flight through the Chicago O’Hare airport and came across a very unique sampling technique. It was the height of cold and flu season and the Advil Company was sampling their recently launched product of congestion repair medication. So as you would expect there was a young lady standing in the concourse handing out small packets of the drug. Next to where she was standing however was a tent with 3 massage chairs where individuals could not only take a load off, but get a free massage as well. The link was obviously that use of the drug would have similar relief techniques. There were literally a line 15 to 20 people long awaiting a little relief. The hook to the whole program was that now these consumers will associate the physical feeling of relief to the Advil product line, and a dedicated customer is born. GCI magazine states that according to the Promotion Marketing Association’s Sampling and Demonstration Council, 83% of consumers agreed that experiencing a product or seeing it demonstrated live increases their comfort level when purchasing. The magazine article further stated that consumers receive as many as 3,000 advertising messages a day and an effective sampling program can help a brand stand out in the crowd. Sampling exposes users of a competitive brand, as well as new consumers, to the product. These two groups can diversify a brand’s consumer base while encouraging brand loyalty, particularly if the consumer had a positive sampling experience. “If a consumer tries the sample and subsequently purchases the brand as a result, there’s no reason to believe the consumer wouldn’t buy the product again since the experience would be the same,” said Cindy 8

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CALL YOUR NICRA SUPPLIER MEMBERS FIRST Johnson, corporate sampling programs manager, Sampling Effectiveness Advisors (SEA).

sure that the flavors in your case are suitable and legibly signed.

So how do we as ice cream retailers effectively institute a sampling program to stimulate our customer’s taste buds and their wallets?

How Many is Enough – The Serial Sampler Fortunately for us, we only have a 12 pan case in our store so we don’t have too much of an issue with the compulsive sampler asking to taste all of our flavors. That being said, some stores are displaying up to 39 different flavors of ice cream at any given time. So how do you react or respond to the “I want to taste them all” sampler?

Gloves, Spoons and Flavor Signs You may look at your sample spoons as a non-essential item, but selecting good quality sample spoons not only appeals to the customer, but could also keep you under the health department’s radar. Remember that as with everything there is a range of price and quality that comes with your spoons and you do not want splintering wood or plastic in your ice cream. Select spoons that are strong and rigid, particularly if your ice cream product is kept at colder temperatures. Also remember that these people more than likely have not purchased yet, so a good looking spoon also adds to the sampling experience. Gelato type colored spoons or molded wooden serving spoons always look more professional. Your health department may not mandate the use of gloves, but it is always a good idea to sample with a gloved hand. No-one likes to watch the ice cream that you are just about to serve then pushed onto the spoon with your grubby fingers. You may not have grubby fingers, but remember - to the customer, their perception is their reality. Have an appropriately labeled rubbish or trash container for used spoons handy. Have you ever seen someone’s face pucker up because the vanilla ice cream that they thought they were going to taste was your super strong lemon sorbet? Customers calling out flavors by color, is not good sampling practice. Always make

Well there are 2 schools of thought here. You basically cap out the samples at a certain number or let the customer sample to their hearts content. Beware here that there is a fuzzy line between the both as capping the limit to the amount of flavors that a customer can sample can come off a little tight and cheap. Obviously if the same customer comes in three days in a row you have yourself a little more than a sampling problem. Have a Signature Flavor Most ice cream shop owners, particularly those who make their own ice cream strive to have some unique and proprietary flavors in the display case at any given time. And even if you do not make your own ice cream, you should be inquiring as to whether your ice cream provider can make a signature flavor unique to your location. Ours is black raspberry cheesecake. It is a cream colored cheesecake base with a black raspberry ribbon and chunks of pie crust layered throughout. Obviously your signature flavor needs to be unique to your concept. Every sample that we give away starts with our signature flavor and every tasting

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CALL YOUR NICRA SUPPLIER MEMBERS FIRST experience starts with this sentence. “Let’s start you off with our signature flavor. It’s a black raspberry cheese cake that is to die for”. Even if some customers don’t like cheesecake most will try it because it looks so good. If there really is a disdain for your signature flavor, then feel free to ask the customer “does anything else grab your eye?” Once they have turned down one flavor, you don’t want to be in the situation where you are continually trying to suggest flavors that may not be palatably suitable. Let the customer pick something that grabs their eye if your signature flavor doesn’t do it for them. Have a Hook Flavor A hook is something that drags you closer to the core of whatever you are contemplating. The term is used in many different industries ranging from music to fishing. A good hook flavor is one that is the little more unique than just plain old unique. It might be a flavor that no one would particularly order two scoops of it on a cone, but is interesting enough to spark some interest. For example, every October is National Cucumber month in the US. That is a great opportunity to dabble in some new flavors for our hook. Last October we offered a cucumber and mint sorbet. I don’t recall anyone ordering it in bulk, but it did spark interest, not only in our shop, but in the community. We often had customers come in and tell us that their neighbor or a family friend told them about cucumber sorbet and they just had to come down as see for themselves. You obviously won’t dedicate too many pans or buckets to this flavor; just enough to serve fresh samples from. The Sample Tray When sampling up a host of mini spoons simply will not do, I recommend a “sampler” type product on your menu. Sampler menu items feature 6 or more mini scoops that the customer can choose that are either plopped in a cup or a specialty tray. On a recent visit to Little Baby’s Ice Cream in Philadelphia, I ordered their version of a sample tray called the “tasting flight”. The purposely designed tray had 6 separate and distinct recesses for my mini scoops which kept them separate for appreciation without the cross contamination of flavors. I choose mint cookie, coconut chai, scotch butterscotch, grape grape-nut, almond anise amoretti and the pizza flavor. Certainly flavors that are so distinct and original deserve the right to be sampled without the taste profile of another hogging room on your taste buds. I have seen this sample platform used in many shops around the US. It is a great way to create a transaction, and at the same time introduce many new flavors to your customer’s palate. Follow these simple rules and who knows, your free sampling program could net you additional profits. NICRA March 2013

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2013 NICRA OFFICERS

Nominating Committee Dan Messer, Eskamoe’s Frozen Custard, Monroe, La. Convention Committee Nanette Frey, Frey’s Tasty Treat, Inc., E. Amherst, N. Y. Membership Committee Carl Chaney, Chaney’s Dairy Barn, Bowling Green, Ky. Ice Cream Clinic Committee Mark Leichtman Scholarship Committee Cliff Freund, Cliff’s Dairy Maid Ledgewood, New Jersey Web Site Committee Juergen Kloo, Joy Cone Co. Hermitage, Pennsylvania

Terms Ending Annual Meeting 2013 Jim Brown, Penn State University, University Park, PA Mary Leopold, Leopold’s Ice Cream Savannah, Georgia Jim Marmion, Advanced Gourmet Equipment Greensboro, North Carolina Neil McWilliams, Spring Dipper Mammoth Spring, Arkansas John Pitchford, JP’s Custard Cart, Albuquerque, New Mexico

MISSION STATEMENT FOR NICRA

President David Zimmermann, Royal Scoop Homemade Ice Cream Bonita Springs, Fla. President Elect Nanette Frey, Frey’s Tasty Treat, Inc., E. Amherst, N. Y. Vice President Carl Chaney, Chaney’s Dairy Barn, Bowling Green, Ky. Secretary/Treasurer Todd Truax, Almost Heaven, Canton, Ohio Immediate Past President Dan Messer, Eskamoe’s Frozen Custard, Monroe, La. Executive Director Lynda Utterback, Elk Grove Village, Ill.

Terms Ending Annual Meeting 2014 Valerie Hoffman, Yummies, Warsaw, N.Y. Jim Oden, Debbie’s Soft Serve, Smithsburg, Maryland Bob Rada, Stoelting, LLC, Kiel, Wisconsin Bob Turner, Dairy Corner, Urbana, Ohio

VISION OF THE ASSOCIATION

NICRA will associate with similar associations dedicated to the same interests. NICRA will facilitate communication and education that both newcomers and veterans in the industry desire to be successful. NICRA will maintain a feeling of family within the association as it grows, and be dedicated to responsibly managing the association while maximizing value to the members.

NONDISCRIMINATION POLICY

Terms Ending Annual Meeting 2015 David Deadman, Chocolate Shoppe Ice Cream Madison, Wisconsin Cliff Freund, Cliff’s Dairy Maid Ledgewood, New Jersey Vince Girodano, Sno Top Manlius, New York Juergen Kloo, Joy Cone Co. Hermitage, Pennsylvania

NICRA is committed to a policy of nondiscrimination in all of its endeavors. To that end, NICRA shall not tolerate any words or acts of discrimination, harassment or any inappropriate behavior in general against any person affiliated with NICRA, including its members and guests, with regard to race, sex, color, creed, religion, age, national origin, disability, marital status or sexual orientation.

2013 SUPPLIER OFFICERS

President Mary Kircher, Dingman’s Dairy, Paterson, New Jersey Vice President Andrew Jones, Lloyds of Pennsylvania, Exton, PA Secretary/Treasurer Hank Sweeney, Classic Mix Partners, Neenah, WI Chairman Margaret Anderson, Taylor Freezer of New England Norwood, Massachusetts

COMMITTEES AND COMMITTEE CHAIRMAN

Executive Committee David Zimmermann, Royal Scoop Homemade Ice Cream Bonita Springs, Fla. 12

The mission of the National Ice Cream Retailers Association (NICRA), a non-profit trade association, is to be the leader in the frozen dessert industry that others look to for help, support and education. NICRA will promote business growth and development throughout the industry.

This Bulletin is published by: National Ice Cream Retailers Association 1028 West Devon Avenue Elk Grove Village, IL 60007-7226 847/301-7500 - Fax: 847/301-8402 Nanette Frey, Chairman Publications Committee Lynda Utterback, Editor ©2013 National Ice Cream Retailers Association Vol. 34, No. 3 This issue of the NICRA Bulletin is now available online at http://www.nicra.org. Click on the Members Only button and enter your Username and Password. If you cannot find your Username and Password, call the NICRA office at 866-303-6960 or send an e-mail to info@ nicra.org requesting the information.

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