Iconic ice cream franchise set to whip up interest

Media Release

Iconic ice cream franchise set to whip up interest

7 July 2008: Profitable, iconic New Zealand ice cream business Mr Whippy recently went on the market with expectations it will whip up considerable interest from astute investors interested in furthering this great Kiwi success story.

Established in 1964, Mr Whippy is one of the best known and most successful franchise operations in the country, its fleet of trucks with their signature Greensleeves tune and distinctive ice creams bringing joy to thousands of New Zealanders over the years.

Being marketed by Mukesh Parsotam of Harcourts Team Wellington, the business and its brand have been significantly improved by the current owners in recent years, ensuring the package now up for sale is a very attractive one with multiple revenue streams and potential for further gains.

As Mr Parsotam explains, the sale includes the Mr Whippy “master licence” and all of the associated mobile and retail franchise systems and supporting intellectual property, a warehousing and distribution operation, the valuable Mr Whippy brand, which is amongst the most recognised in New Zealand, and all related intellectual property, plus a new Crystal Peak water brand and two stores.

Mr Parsotam says the current owners have revamped the brand, improved the portfolio of products and suppliers and made various operational improvements to increase revenue, achieve efficiencies and reduce costs – which has created an excellent platform for their successor.

“Currently Mr Whippy’s gross profit from its products including ice cream mix, cones, toppings, cups etc averages 55% from an annual turnover of around $1.2 million, a figure that should grow following the recent introduction of hot beverages and other snacks and any future sale of available territories,” Mr Parsotam says.

“Two additional sources of revenue are royalties from franchisees and funds from franchise sales, of which there are existing and future opportunities in New Zealand, not to mention the potential for international growth in the franchise,” he says. “Corporate rebates and various advertising deals also provide sources of income.”

Mr Parsotam says the current owners, who now want to focus on another food business they have set up, have already identified opportunities to further increase revenue and to improve the other side of the balance sheet too.

“The business is back in great shape and we definitely expect strong interest in this unique and profitable piece of Kiwiana. Astute investors interested in further developing this great Kiwi success story should definitely not delay in contacting me to get more details.”

Editor’s Notes: The sale comprises:

• Franchise systems for a current network of 55 ice-cream vans and nine retail stores, along with the supporting legal IP such as franchise agreements. (Note: This part of the business is currently managed out of a head office in Auckland.)

• Currently Mr Whippy vans are located in: Northland, Orewa, Auckland, Hamilton, Tauranga, Te Awamutu, Taupo, Edgecumbe, New Plymouth, Hastings, Gisborne, Wanganui, Palmerston North, Kapiti Coast, Upper Hutt, Wairarapa, Nelson, Blenheim, Hanmer Springs/ Kaikoura, Christchurch, Akaroa, Ashburton and Timaru.

• Currently Mr Whippy stores are located in: North Shore, Auckland, Manukau, Thames, Hamilton and Christchurch.

• A warehouse and distribution operation – currently all Mr Whippy-branded products are supplied by external parties, contract-packed and freighted to a warehouse rented by Mr Whippy in Hamilton. The warehouse has MAF accreditation to unload and store products, which it then dispatches as required to franchisees around the North Island (including via its own delivery truck) and to a third-party warehouse in the South Island. This part of the operation has two employees.

• Mr Whippy brand trademarks and IP – the key components are the Mr Whippy and Whippiccino brands, the Greensleeves “soundmark”; Corporate Brand Guidelines; new livery and retail store identities; various legal contracts; a range of branded products; branded merchandise and licensing; an interactive website (www.mrwhippy.co.nz); franchisee support and communication; an 0800 number (0800 4 WHIPPY) and a ZM Black Thunder Whippy Wagon.

• The Crystal Peak water brand plus a concept store in Wellington and another store in Auckland under licence to the company.

ENDS

© Scoop Media