YoCream and Dannon expand sales connections.
The combined product lines include: cup yogurt, ready-to-drink yogurt smoothies, fruit and dairy smoothies, soft frozen yogurt, soft frozen custard, soft ice cream, hard pack frozen yogurt, hard pack frozen custard, and hard pack ice cream, and sorbet, both hard pack and soft serve.
Product line cross training will be complete in February. The companies are reporting that collaborating sales teams have embraced the opportunity to become more valuable to customers, offer an expanded product line, and additional support. In a statement announcing the new alliance, YoCream explained: "The efficiencies of a unified sales force of yogurt experts increase presence in the market, maximizing sales potential."
The alliance is an expansion on the one established in April 2001, when YoCream International began to supply soft frozen yogurt to Dannon's customers. In October 2001 the relationship was expanded to include a co-branded line of Dannon YoCream Frozen Yogurt.
In addition to announcing the expanded alliance, YoCream also reported sales of $19.4 million for the fiscal year ending October 31, 2002. This was an increase of 24.5% compared to $15.6 million in sales in 2001. Net income increased 13.7% to approximately $856,000 or $0.38 per share, compared to $753,000 or $0.33 per share for the same period in 2001.
"The growth in sales has continued to be broad-based with contributions from all products; yogurt and smoothies, coffee latte, custard, ice cream and co-packing," said Douglas Caudill, CFO. The Dannon alliance and the related nationwide roll out of the Dannon/YoCream co-branded yogurt products were cited in the statement for their significant contributions to the sales increase.
So, too, were coffee latte freeze product sales to Costco. In response to consumer demand, YoCream is providing this product in an aseptic package with extended shelf life. Custard and ice cream sales grew due to the soft frozen custard business with Runs Restaurants which began in June 2002, and the gourmet softened ice cream business with Tully's Coffee Corporation, announced in September 2002.
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|Publication:||Ice Cream Reporter|
|Date:||Jan 20, 2003|
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