Sweet times for boutique ice cream firm

Ice cream maker Greg Hill says people are still rewarding themselves in the economic downturn. Photo / Kenny Rodger

Business is sweet for luxury ice cream maker Kohu Road despite the bitter chill of recession.

The Auckland company, whose litre tubs in nine flavours cost $18.90, has watched sales climb from 200 units a month at its launch in February 2008 to 4000 units a year later.

That means the six-person operation is hovering around profitability, says Kohu Road founder Greg Hall, whose business card reads "ice cream maker".

"Some months we're up, some months we're a little bit down, but we're pretty close to that break-even spot," Hall says.

"We're still expanding even though the times are tight. People are being austere but they're still rewarding themselves."

If that sounds remarkable for a new premium-priced product in a retail market downturn, it is even more so for a company that has no marketing budget.

Promotional activity is confined largely to tastings.

"Our main approach has just been to get the product into people's mouths," Hall says.

"We go out to supermarkets and gourmet food shops and will spend a Saturday giving free samples to people coming through the store."

The typical reaction to the taste is "wow", Hall says, and "wow" again when they get to the checkout.

The price is double that of brands such Kapiti, Rush Munro's and Movenpick.

But Hall does not see them as competitors.

"We're in a different place to where everyone else is, out on the fringes of mainstream."

The person who "invests" in Kohu Road ice cream does so for the same reasons people fork out for Apple's costly iPhone, Hall says.

"They're so pleased with the product, and they've enjoyed it so much, they don't feel like it was expensive. Even though you spent $20, you got that much value out of it that it was worth it.

"And as long as it was worth it, you'll buy it again."

Hall had been running an IT recruiting firm in Japan for a decade and, after returning to New Zealand, wanted to get away from the high-pressure, suit-and-tie existence.

The ice cream started out as something he and Japanese chef wife Yayoi would make at home for family and friends.

"Everyone loved it so much that we thought maybe this is a nice little cottage business we can do."

The Japanese ethos of emphasising food's ingredients is the basis for Kohu Road's ice cream recipes. Certified organic milk from a Hamilton supplier is used, and emulsifiers, stabilisers, preservatives and colouring are shunned.

Taking the business out of their Titirangi home into commercial premises in Newton cost about $350,000, raised by selling the family holiday house.

The ice cream is now sold in more than 30 outlets, including the Langham Hotel. Progressive Enterprises, which owns the Foodtown, Woolworths and Countdown supermarkets, will be Hall's next port of call. Kohu Road also has a distributor lined up in Sydney from spring.

RICH VARIETY

A litre of ice cream costs:

* Kohu Road - $18.90
* Kapiti - $10.99
* Movenpick (900ml) - $10.65
* Rush Munros - $8.99
* Tip Top - $3.69