Jerry's Low Fat Ice Cream Flavors example essay topic

Group 1 Managerial Finance 26 Aug, 1999 A Little History: Ben & Jerry's, Vermont's Finest Ice Cream and Frozen Yogurt, was founded in 1978 in a renovated gas station in Burlington, Vermont, by childhood friends Ben Cohen and Jerry Greenfield with a $12,000 investment ($4,000 of which was borrowed.) They soon became popular for their innovative flavors, made from fresh Vermont milk and cream. The company works to employ its Mission Statement in as many day to day business decisions as possible so that the company is profitable and the community can profit by the way Ben & Jerry's does business. Corporate Profile: Ben & Jerry's Homemade, Inc. is a Vermont (USA) corporation. They make super premium ice cream, frozen yogurt, and ice cream novelties in unique as well as traditional flavors; their products are marketed through supermarkets, grocery stores, convenience stores, and food service operations, as well as through licensed scoop shops, franchised scoop shops, and company-owned scoop shops. Ben & Jerry's products are distributed in all 50 states, and you " ll find over 120 Ben & Jerry's franchised scoop shops in 20 states (including Washington, D.C. ). Internationally, there are franchised scoop shops in Canada and licensed scoop Group 2 shops in Israel and The Netherlands.

In 1988 Ben & Jerry's Homemade, Inc. created a document called the Statement of Mission. They are dedicated to the creation & demonstration of a new corporate concept of linked prosperity. Our mission consists of three interrelated parts: product, economic and social. Ben & Jerry's Philanthropy: Ben & Jerry's gives away 7.5 percent of its pre-tax earnings in three ways: the Ben & Jerry's Foundation; employee Community action Teams at five Vermont sites; and through corporate grants made by the Director of Social Mission Development. They support projects which are models for social change - projects which exhibit creative problem solving and hopefulness. The Foundation is managed by a nine member employee board and considers proposals relating to children and families, disadvantaged groups, and the environment.

Ben & Jerry's is dedicated to the creation & demonstration of a new corporate concept of linked prosperity. Their mission consists of three interrelated parts. Underlying the mission is the determination to seek new and creative ways of addressing all three parts, while holding a deep respect for individuals inside and outside the company, and for the communities of which they are a part. Product: To make, distribute and sell the finest quality all natural ice cream and related products in a wide variety of innovative flavors made from Vermont dairy products. Economic: To operate the Company on a sound financial basis of profitable growth, increasing value for their shareholders, and creating career opportunities and financial rewards for their employees.

Social: To operate the Company in a way that actively recognizes the central role that business plays in the structure of society by initiating innovative ways to improve the quality of life Group 3 of a broad community local, national, and international. Underlying the mission of Ben & Jerry's is the determination to seek new & creative ways of addressing all three parts, while holding a deep respect for individuals inside and outside the Company and for the communities of which they are a part. CEO's Letter: On the threshold of their third decade in business, Ben & Jerry's is on track and gaining the forward momentum that will ensure continuous improvements and breakthrough innovation well into the new millennium. With aggressive new product development and an increased focus on brand equity, net sales for 1998 were $209,203,000-a 20.1% increase over 1997's net sales of $174,206,000. All quarters displayed double-digit net sales increases, with a particularly strong 29.2% increase in the third quarter of 1998.

The Company's 1998 net income of $6,242,000 represents a 60.2% increase over 1997's net income of $3,896,000. They are pleased to note that they were able to increase their 1998 earnings in spite of substantial increases in dairy commodity costs. Their annual costs for cream alone increased by more than $7 million over 1997. Offsetting the increased dairy commodity costs were savings at the manufacturing level, resulting from better plant utilization and higher volumes. Current projections on dairy pricing are encouraging, suggesting that they will not experience as substantial an increase in dairy costs in 1999 as compared to 1998.

Gains in their sales and market share growth can largely be attributed to the strategic reinvigoration of the Ben & Jerry's brand. Of significant impact was their package redesign, a fresh new look that has proven to be popular among Ben & Jerry's loyalists and new consumers alike. As awareness of the Ben & Jerry's brand has increased, so has household penetration-up Group 424% over last year, from 4.5% of U.S. households in 1997 to 5.6% in 1998. In round numbers, that means they " ve added an impressive one million households as their customers. Reaching customers, both existing and new, was a high priority in 1998.

During the summer, they supported the brand with their second successful foray into national radio advertising, targeting 16 key markets with the popular 'phone fan' campaign. The advertisement dovetailed with trade promotion and key retailer marketing programs, bolstering domestic performance while leveraging their high brand awareness. They continue to build awareness in less traditional ways-generating visibility for the brand in newspapers, magazines, radio and television. Ben & Jerry's products are frequently seen on top-rated sitcoms and movies-a frequent source of irritation to competitors who outspend them in advertising by more than 6: 1. All told, Ben & Jerry's enjoyed 450 million media impressions in 1998, a 50% increase over 1997. That may be one reason why a 1998 Harris Poll that asked adults to name 'major companies that you think are really good companies' found Ben & Jerry's in the top 20.

This score placed Ben & Jerry's ahead of such household names as Johnson & Johnson, DuPont and Apple Computer. In 1998, they delivered on their goal of aggressive new product development, introducing 19 new products into the marketplace. Among the most successful of these introduction's were three new Ben & Jerry's Low Fat Ice Cream flavors. Led by S'Mores (tm), the popular line was a significant factor in the growth of their business. Another highlight of their 1998 introduction's was Dilbert's World (tm) -Totally Nuts (tm), an original ice cream flavor that exemplified a successful co-branding effort. They got a lot of mileage out of the launch event-an April Fools' Day promotion targeting airline business commuters.

Their novelty line enjoyed a boost Group 5 from Dilbert's World (tm) - Totally Nuts (tm) bars and Phish Sticks (tm), which were reintroduced in a decidedly upscale, totally chlorine-free package, more consistent with the brand image. Ben & Jerry's franchised scoop shop network saw continued expansion in 1998 with the opening of 38 additional shops, including three in Paris, France. That trend promises to continue in 1999, with 60 new shops slated to join their existing 195 shops in the U.S. and abroad. Ben & Jerry's international presence took a marked upturn in 1998, primarily in the United Kingdom, where we opened 34 UCI Cinema locations, and in the Benelux region, where they " ve established a growing presence in Holland's popular Jamin chain of candy shops. Japan has also proven to be a significant market for Ben & Jerry's, where the introduction of a single-serve container exceeded our sales projections. Closer to home, their Canadian licensee, Delicious Alternative Desserts Ltd., began distribution of a number of Ben & Jerry's ice cream and frozen yogurt flavors.

Essential to their reputation both at home and abroad is a renewed commitment to their social mission as an integral part of every Ben & Jerry's corporate decision. A major accomplishment for the Company was the November 1998 debut of unbleached packaging for our World's Best (tm) Vanilla. Their new 'ECO Pint' carton is made from unbleached brown kraft paper with a non-toxic, printable clay coating on the outside. Standard paper-making uses chlorine compounds as a bleaching agent-a process that discharges millions of gallons of organochlorine-laced wastewater daily, according to Greenpeace.

Some of these chemicals are considered human health hazards, and EPA has identified a few, such as dioxins, as carcinogens and highly toxic. As the first ice cream company to use this new packaging, they know they " re doing their part for the environment, and they encourage other manufacturers to follow suit. Group 6 They plan to further this initiative by converting a significant percentage of our product line to unbleached packaging in 1999. And by working in partnership with the nonprofit organization Greenpeace, they plan to heighten consumer awareness about dioxins while enhancing Ben & Jerry's brand equity. Their concern for the safety of the food chain continues to be reflected in their commitment to using only milk and cream from cows that have not been treated with recombinant bovine growth hormone (rBGH), a genetically-engineered copy of a naturally-occurring hormone. Their 1997 legal victory cleared the way for their Company and other dairy processors nationwide to label products with an anti-rBGH message, giving consumers the right to make an informed choice about rBGH and the dairy products they buy.

In 1999, we " ll continue to bring greater consumer awareness to the rBGH issue. Along with a renewed emphasis on social mission initiatives, their key objectives for 1999 include strengthening the Company's overall economics through brand extensions and the implementation of strategies for further growth. As part of their initiative to improve the Company's economics, they will be instituting a number of changes in their distribution, including the adoption in 1999 of new, non-exclusive distribution agreements. Recognizing the potential pitfalls posed by previous arrangements which concentrated almost 60% of distribution through a single company, they have reapportioned their distribution to ensure that no one distributor accounts for any more than 40% of their business. They " ve created an internal sales force that now has responsibility for direct selling into the trade.

Given their growth, they have also been able to negotiate better terms with distributors, changes that Group 7 will enable Ben & Jerry's to gain additional control over retail sales while helping to streamline their delivery process. Expansion is on their horizon, with significant opportunities for the Ben & Jerry's brand name in, for example, novelties and confectionery items. They " ve also identified and are investigating potential opportunities to expand through licensing arrangements, partnerships and acquisitions. As they pursue these opportunities, however, we remain committed to supporting their core business without cannibalizing the assets and brand loyalty upon which they " ve built their business.

The successes they achieved in 1998 would not have been possible without the talents and hard work of their dedicated Ben & Jerry's employees and the loyal support of their shareholders. Together, they approach our 21st year in business conscious that it will bring both opportunities and challenges. While their marketing and communication challenges have never been bigger-their expectations have never been higher. I remain committed to building on the forward momentum they " ve achieved to produce steady, sustained growth for their shareholders, with a conscientious eye toward their economic, product and social missions.