4 reasons why Chinese Ice Cream Makers Beat Nestle

by BBelew57 on March 12th, 2007

Sing along with me, N-E-S-T-L-E-S, China beat the very best…well, at least the cheaper Chinese versions.

Nestles lost to China in the low-priced ice cream game.

1. a weaker distribution network

2. failing to cater to local taste

3. hikes in raw materials

4. 13 cents for an ice cream price tag.

Cheap Chinese ice cream is in the 8-13 cents rage and made up for over 70% of ice cream sales in 2006.

Mid-priced ice cream goes for around 15-16 cents. High-end is closer to 20 cents.

We in America are wondering…can you still buy ice cream that cheaply? Seriously?

Nestle plans to switch its strategy to making high-end ice cream products, 20-25 cents, in hopes of attracting the affluent.

It does sound like nothing to the American…but its a difference between paying 1yuan, or two to three times that much for an ice cream.

If the price of the snack you have been eating all your life tripled, would you want to buy it?

That's the challenge Nestles is facing.

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