Frozen yogurt makes return--in new form: latest S. Korean craze taking hold in region.

Here's a scoop for you--frozen yogurt is back in style.

Not the sugary stuff that guilt-ridden noshers substitute for ice cream, but real, bacteria laced yogurt frozen into a naturally sweetened concoction and served up in the kind of cafe that is usually reserved for $5 coffee drinks.

The idea seems to have been imported from South Korea, where, curiously enough, the national staple kimchi is prized in part for a bacteria similar to that found in genuine yogurt cultures and thought to ward off a host of ills.

This newly re-fashioned dish first appeared at a no-frills shop called Pinkberry, where it caused a sensation, not to mention a neighborhood parking scandal, when it opened in West Hollywood and converts clogged the streets looking for a parking space. The shop has since expanded to seven locations including one in Studio City.

Another independent, Limelite, has opened in recent weeks in Sherman Oaks.

But the real sweet spot of the newest trend may be yet to come.

A South Korean franchisor with about 50 such shops throughout Asia, is getting ready to move into the U.S. market with a plan to open 30 stores in Southern California by early next year and 100 stores nationally by the end of 2007.

"The conventional frozen yogurt, it's 30 years since it started. They were basically a different ice cream," said Jacob Yoo, general manager of Yogurberry U.S.A., which is seeking locations for about five or six shops in the greater San Fernando Valley for its launch. "Our food is more health conscious. Our frozen yogurt tastes more like yogurt that's been frozen."

Frozen yogurt has been a staple at food courts, bakeries and quick-dining establishments for decades. Containers of frozen yogurt sit side-by-side with pints of ice cream in the grocer's freezer section. A Fruit 'N Yogurt Parfait is even on the menu at McDonald's.

So what's the big deal about these new yogurt shops?

The new dish being served up typically has no artificial flavors or sweeteners and it contains live cultures--the same lactobacillus acidophilus bifidus that first put yogurt on the map at health food stores. Even with the addition of fruits and fruit sweeteners, fans say there is a tang to the yogurt or smoothies that are usually available as well that is distinctly different from the varieties that have dominated the American market.

Lounge selling

Limelite, whose owners first tried the dish in Korea, imports its base from Italy. But like Pinkberry, which is owned by Hyekyung Hwang, Limelite also offers its yogurt in plain and green tea flavors and serves it up in a slick neon green setting.

"We'll have a couch," said Lana Chung, who opened the shop with Dennis La in November. "We want it to be as comfortable and lounge-y as possible. We wanted to create a cafe type atmosphere."

The planned Yogurberry stores will be equally as contemporary, although not quite as elaborately designed as their Korean counterparts.

As they moved into the mainstream, many yogurt products and frozen yogurt in particular have largely lost their original characteristics and health benefits.

Which is not to say that they haven't been popular.

In 2005, sales of packaged yogurt totaled $4.9 billion with yogurt smoothies adding another $929.4 million, according to data compiled by Packaged Facts, the publishing division of MarketResearch.com. While the researchers project that solid yogurt will grow by a modest 3.5 percent between 2005 and 2010, yogurt-filled smoothies are expected to see a 37.7 percent growth rate compounded annually during that time.

"While yogurt sales in the U.S. are at an all time high and the market has reached a certain level of maturity, there is still much potential for continued growth, potentially someday seeing consumption rates on a par with Europe, which is four to five times higher, the authors of the Packaged Facts study wrote.

Various groups are touting dairy as an aid to weight loss and cultured dairy products are gaining a reputation for helping to combat diseases like diabetes, heart disease and even some cancers.

Health factors

The popularity of Yogurberry in Asia is at least in part due to the perceived health benefits of the yogurt.

"Korean people have always been into organic food," said Mike Choi, vice president of NAI Capital's Pacific Rim Division. who is working with Yogurberry to find sites in this country. "They like any organic food."

But while the yogurt is typically all natural and low-fat, it is the taste that will have to win over the American palate.

Another Asian-born food novelty, Boba, drinks made with tapioca balls, quickly fizzled in the U.S. market.

But at Limelite, which is adding mango and chocolate flavors to its frozen yogurt offerings along with smoothies and a selection of teas, Chung says she is confident that the taste, coupled with the draw of fresh, natural ingredients, will win over customers.

"This type of product is different," Chung said. "It is lighter and more refreshing. And our toppings are freshly made every day. That's what's drawing people."

By SHELLY GARCIA

Senior Reporter