It’s been a long, hot and humid summer and young and old alike have been reaching into the ice cream chiller to cool down. Companies with a heavy focus on impulse products typically make over 65% of their annual sales in July and August alone.
Get your sales forecasts wrong and you can easily miss the annual target just because of supply issues. I spent several years in the business and learnt this the hard way. Still that’s another story!
Gari Gari Kun, is a quintessential Japanese water ice, whose name derives from the crunching of its inner core of ice crystals, has steadily risen up the market share charts, although its brand owner, Akagi, is not one of the mega dairy companies.
Akagi’s rise to fame was thanks in no small part to its cherished relationship with 7-Eleven, the leading CVS retailer. Earlier this year the company hit a publicity sweet spot with an “CEO-apology-TVC” for raising prices (for the first time in many years) that went viral.
Like many Japanese companies these days, Akagi has been keen to venture into new pastures and two years ago started sales in Thailand, this time in conjunction with Lawson. Thai Lawson is a fraction of the size of Japan 7-Eleven, plus Akagi are not making locally which carries logistical as well as profitability challenges.
I really like the Gari Gari Kun brand and think with clever marketing the concept can travel. Akagi’s key challenge will be getting into a large number of freezers and staying there.
Exigo Marketing (S) Pte Ltd is registered in Singapore company number 200606723W
20-19-1, Imamiya 3 chome, Minoh-shi, Osaka, 562-0033, Japan