Lane Cardwell

Frodo Endorses Favorite Froyo

Not yet, but the leading frozen yogurt chains will probably be seeking out the Lord of the Rings hobbit to add to their growing list of celebrity customers. Leonardo DiCaprio has a Red Mango yogurt machine in his office. Paris Hilton carries a Pinkberry yogurt cup while dodging the paparazzi. Lindsey Lohan, when not in rehab, prefers Pinkberry. Kristen Bell is a Red Mango fan. These companies are two of the leaders in the new frozen yogurt cold wars, but there are a long list of independents and small chains filling in the gaps. Southern California has been ground zero for the reemergence of this popular treat, but the rest of the country won’t be far behind.

What has changed from the ‘80s, and chains like I Can’t Believe It’s Yogurt and TCBY? Several things: style, taste profile, cool factor, and quality toppings, among others. The difference this time around is the lesson that Starbuck’s taught the coffee industry. Don’t just sell the coffee, sell the experience. Instead of expecting the customer to buy and leave the store, the new concepts are investing in stylish tables and chairs (Philippe Starck Ghost chairs at Pinkberry), lighting, graphics and music. The goal of creating a meeting-place ambiance is working. The two leaders, Red Mango and Pinkberry, are ramping up their expansion plans, investor base, and management teams.

In the meantime, copycat concepts with copycat names are trying to draft behind the momentum and publicity that these two market leaders have created. Snowberry, Roseberry, Kiwiberri, IceBerry, Berri Good, Yogurberry, Yogurtland, Juju, Newberry Hill, Cantaloop, Yogli, and many others are trying to carve out their place in the market.  Believe it or not, these are just some of the Los Angeles brands.

What about the leaders? There are similarities between Red Mango and Pinkberry. Red Mango first opened in Korea in 2002, and now has over 140 locations there. Pinkberry apparently liked the idea, and similar concepts in Europe, and opened their version in the U.S. in 2004. Not to be left behind, Red Mango has since opened 30 in seven states. Pinkberry now has 59 locations open in California (mostly Southern) and New York. Both are accelerating their expansion to take advantage of the land grab resulting from the appeal of these concepts.

The product offering is very basic at both concepts. Two choices of yogurt flavor at Red Mango (original and green tea) and three at Pinkberry (they add a coffee flavor). The real fun is in the toppings which are added to create your own custom flavor. Topping choices include mango, blackberry, strawberry, blueberry, raspberry, banana, pineapple, coconut, almonds, granola, graham cracker, cranberry, dark chocolate, and others. The basic yogurt runs about $5, and with topping choices can easily double in price. Unlike the sweeter profile of the yogurt shops from the ‘80s and 90’s, the fermentation process for making real yogurt results in a tart, refreshing taste.

Which is better? I have eaten the Pinkberry product but not Red Mango, however, a quick scan of the reviews in the various markets where both compete shows a decided preference for the Red Mango profile. You will be able to judge for yourself in the near future.

It is always exciting to watch a new category be launched, and see how each brand chooses to position itself relative to others. As always, there are some brands that leave the starting blocks quicker than others, have stronger brand elements, better financing, stronger management, and understand the end game better. In the world of frozen yogurt, the leaders are Red Mango and Pinkberry. But keep an eye out on Frodo in Middle-Earth, and the soon-to-be-launched Shireberry.

Posted by Lane Cardwell on August 20, 2008 | Comments (5)