For Pierre’s Ice Cream, Quality Is
The Name Of The Game
by James Dudlicek
Who says you can’t
have your cake — er, ice cream — and eat it, too?
Pierre’s Ice Cream Co. has built its reputation
upon the ultra-rich “French” ice cream that it began scooping
out in Cleveland back in 1932, with the quality and taste that has kept the
brand a regional favorite almost 75 years later.
But Pierre’s is also a pioneer in the
better-for-you segment of the frozen dessert industry, offering calorie
counters and carb watchers a wide variety of lowfat and reduced-sugar
options that aim to deliver the indulgent taste for which the company is
known. And the company has done well keeping pace with wellness trends.
“Being the size that we are, we have the ability
to come to market a lot faster that than some of our competitors,”
says John Pimpo, Pierre’s brand development manager. “Back the
mid-’90s, you had your yogurts and your fat-frees, and the industry
was pretty much going away from the ‘good-for-you.’ If a
consumer wanted ice cream, they wanted the good stuff.”
Then in 2001, Pierre’s released its Slender® line of
no-sugar-added (NSA) products. “We were one of the first ice cream
companies in the nation to come out with a Splenda-sweetened ice
cream,” recalls Laura Hindulak, director of marketing. “We went
through a lot of testing. Slender actually got us into 16 states; we were
on the cusp of something big with Splenda.”
Success continues to mount for Pierre’s, with at
least 235 products that carry its name, sold throughout Ohio and western
Pennsylvania, as well as select accounts in Chicago, Indiana, Kentucky,
Michigan and West Virginia. The company also manufactures private label
products and distributes national brands. Privately held Pierre’s
doesn’t divulge its financial information; Hoover’s Online puts
the company’s sales at $37 million.
“We have a very strong sales team and a very
strong marketing team, who really seek business opportunities for us and
convey the message about our company and products,” says president
Shelley Roth. “I think that is a very big plus for wherever we move
in the future.”
Staying on Trend
The big movement right now is in better-for-you
products, about which Pierre’s maybe didn’t write the book, but
is quickly churning out new chapters.
The company’s most recent product launch,
Pierre’s Smooth Churned Light Ice Cream, counters the
“slow-churned” offerings of the national competition, whose
proprietary technology is gradually being decoded across the country. Like
the big guys’ offerings, Pierre’s Smooth Churned features half
the fat and a third fewer calories of regular ice cream.
Smooth Churned joins an extensive line of products
aimed at consumers of all stripes. “The focus was not only to address
the growing ‘waist watcher’ community and folks who wanted to
eat healthier,” Pimpo says of the Slender NSA products.
“There’s 17 million diabetics out there. It’s so
refreshing to get letters from consumers who have said, ‘I have never
been able to eat an ice cream product in my life, and to be able to enjoy
your product in moderation, has been a godsend.’ These are people who
haven’t had dessert in so long, to try something new like this has
been fantastic.”
Encompassing eight flavors, Pierre’s Slender No
Sugar Added Reduced Fat Ice Cream features 30 to 50 percent less fat than
the brand’s premium ice cream.
While the low-carb firestorm of two years ago has been
extinguished, folks at Pierre’s agree the product development that
ensued was good for the long term. “Not only had Slender stood the
test of time through that entire low-carb phase, but it still met the needs
of consumers looking for a good-for-you product,” Pimpo says.
“Additionally, our frozen yogurt has stood the test of time. You look
at our numbers for frozen yogurt — it has done very well. Even with
the low-carb highs and lows, and no-sugar highs — no sugar’s
kind of remained consistent. Our soft frozen yogurt sales have been
fantastic. It’s just a great-tasting nutritional product.”
In addition to its Slender and yogurt products,
Pierre’s plays the wellness card with its Pure Fruit Sherbet,
Naturally Fat Free Sorbet and specialty items like Frosted Smoothies®.
Of course, leading the pack is still the
Pierre’s Premium Ice Cream line, which has grown from its original
three flavors to more than 35. The line is anchored by French Vanilla,
which has consistently remained the company’s most popular flavor.
Butter Pecan, Neapolitan, Chocolate, Strawberry and Cherry Vanilla hold
true to tradition, while concoctions like Everything but the Kitchen Sink®, Ice Cream
Sandwich and Nuts about Buckeyes satisfy consumers’ quests for
variety.
“Pierre’s original, classic recipes are
daily reminders of the company’s dedication to quality,”
Hindulak says. “That dedication influences the company’s focus
on the future as it develops new business opportunities and continues
to be innovative and sensitive to consumers’ changing
needs.”
Leading up to the Fourth of July, Cleveland-area stores
were stocked with Pierre’s Spirit of America®, a patriotic tricolor
of strawberry, French vanilla and blueberry. Other longtime seasonal
traditions include Peaches & Cream, Coconut Pineapple, Pumpkin Pie and
Peppermint Stick.
Rounding out the packaged offerings is Pierre’s
Homestyle Ice Cream line, which is designed to offer consumers a more
“traditional-tasting” ice cream that’s smooth and creamy.
The line features 12 flavors including Wild Mountain Blackberry and Peanut
Butter Cup.
Pierre’s also offers a full line of assorted
novelty items, though the company now has them co-packed by another
regional processor. Recently introduced were Pierre’s Premium
round-top Sundae Cones and Moose Tracks® Sundae Cones, joining the extensive line-up of
sandwiches, bars and pops — many of which have better-for-you
counterparts like Slender cones and bars.
Novelties are available for foodservice and
institutional needs in bulk-count cases. Additionally, Pierre’s
offers thermal Ice Cream Cups, Sherbet Cups, Chocolate Frosted Malt Cups,
stadium Frosted Smoothie Cups and a complete assortment of ice cream,
yogurt, sherbet and sorbet in 3-gallon containers. New in 2006 among
foodservice offerings are more than a dozen new bulk flavors including
Black Raspberry Chip, Espresso Chip, Butter Almond and Pistachio.
Cleveland Rocks
Perhaps second only to quality is the company’s
commitment to its community, shown among other ways by never straying more
than three blocks from its original location.
“We did have the opportunity to leave downtown
Cleveland and go out to the suburbs,” Hindulak says. “Shelley
made the choice to say, ‘We’re a Cleveland company —
we’re going to stay in downtown Cleveland.’”
In the mid-1990s, Pierre’s worked with the city
of Cleveland, the state of Ohio and the Ohio Environmental Protection
Agency on redevelopment of a “brown-field site.” Today, the
Pierre’s office building and state-of-art distribution center sit on
eight acres of lush green lawn and landscaping amid an urban environment.
The design of the new headquarters received the Honor Award for Achievement
of Excellence from the American Institute of Architects. The company says
its decision to remain in the city has acted as a catalyst for others,
spurring current and new businesses to recommit to this urban area.
Further proof of Pierre’s status as a Cleveland
original: It’s sold at Jacobs Field, home of the Cleveland Indians
baseball team. The Pierre’s logo and products also made appearances
on ABC-TV’s “The Drew Carey Show,” the former sitcom
starring its namesake comic, a Cleveland native.
Meanwhile, the company is involved in a host of
charities, including the Juvenile Diabetes Research Foundation; American
Red Cross; Harvest for Hunger; and GuitarMania, which benefits United Way
Services and the educational fund of Cleveland’s Rock and Roll Hall
of Fame.
“We try and do as much as we possibly can to give
back to the people who are our consumers,” Pimpo says. “With
the Juvenile Diabetes Research Foundation, it makes sense for us to work
with a group like that because of our Slender product. It makes sense not
only because we’re community focused, but we can also reach specific
consumers through a targeted marketing program with them.”
When Slender was released, Pierre’s ran
advertising in diabetic-community publications as well as diet and
lifestyle publications. Pierre’s utilizes a variety of advertising
mediums to effectively convey our message. In general, the company’s
marketing campaigns have ranged from traditional means such as radio, print
ads, billboard, FSIs and coupons to innovative options like Web-based
programs, Internet advertising and public relations initiatives.
Ice cream’s nearly universal household
penetration makes the product’s audience very diverse. The
Pierre’s marketing team typically targets both male and female
shoppers through broad formats and targeted marketing efforts to gain a
foothold in such a competitive category. Pierre’s folks say
they’ve successfully carved niches within the category with unique
product offerings and a commitment to quality.
Additionally, Pierre’s has a sports sponsorship
program with the Cleveland Indians that consists of in-game Indians radio,
promotions and in-stadium signage. The company also has similar programs
with other major- and minor-league ball clubs; its malt cups are sold at
Chicago’s Wrigley Field.
Promotional activities include the company mascot,
Pierre Bear, at special events; the Pierre’s Freezer Police,
which gives away ice cream around town; and contributions to the
World’s Largest Ice Cream Sundae event that takes place in a major
Ohio city each year.
Roth says it’s wonderful that her company is
revered as a hometown favorite. “We have a real connection to the
community, to the consumers in this region. We have a lot of support, and
that means a lot to everyone in the company,” she says.
“Sometimes I’m not sure people realize that we’re not
everywhere. We’re unique and special to this region, and I know
it’s appreciated.”
Small Fish, Big Pond
What’s it like being a small, private company in
an industry dominated by large national players?
“We think it’s pretty wonderful, actually,
because it allows us to be as creative as we want to be,” Roth says.
“We stay very close to the customer, both consumers and retail and
foodservice customers. We feel we have a great understanding and can do a
good job, and still work in an environment that is very conducive to team
work and camaraderie. We want to grow, but we want to continue to
understand those are important features for us.”
Pierre’s size also helps it to seize trends and
run with them. “On some things, we can get to market faster, and we
can just be more flexible,” Roth says. “We don’t have a
lot of layers that could create obstacles to decisions.”
Of course, some challenges are unavoidable in this
industry, like cost control. “Both with the public and the customers
we sell to, there is a certain point where prices just can’t move
up,” Roth says. “We have to manage our costs, and it’s
very challenging, because this industry has a strong basis with fuel and
utilities, which is difficult to control. We have large labor forces, with
things like health insurance that’s difficult to control.”
But the challenge of developing new products and
outlets for business are things that Roth finds exciting. “No one
does a better job at making ice cream than American ice cream
companies,” she says. “I think it’s very exciting for
companies like ours to do more nationally and internationally.”
And such opportunities abound. “I see a lot of
opportunities with new products. There’s some fun things we’ve
introduced through the years, and there’s some more that we’re
working on,” Roth says. “I also see opportunities with
segments, with components of the business, such as foodservice. I see that
continuing to grow. We do quite a bit with that segment. Our retail is a
little more visible, and I see more opportunities in that aspect as well.
Making high-quality ice cream is lots of fun, and we want to bring that
into whatever we do with our brand.”
Pierre’s managers say that, as a small regional
company, it has the ability to continue to expand geographically. “We
continue to be innovative by creating new, inventive products and strive to
improve our manufacturing and distribution techniques,” Hindulak
says. “With the initiatives we have undertaken, we are optimistic
that there is an abundance of opportunities on the horizon.”
Roth is confident that Pierre’s has the right
combination of talents to take the company wherever it wants to go.
“We have strong sales, production management, operations and
distribution,” she says. “We seek the business and
they’re able to respond.”
What do the next few years hold for Pierre’s Ice
Cream? “We have a lot of ideas to continue to propel our brand.
That’s a major focus for us,” Roth says. “When we talk
about our brand, it’s in both retail and foodservice. Then we also
look at opportunities — more selective opportunities — to
produce other brands, specialty products for certain retailers, foodservice
operators and product developers. We’ve got some opportunities in the
hopper on those.”
While Roth may wonder whether hometown consumers
realize Pierre’s is unique, she has her own thoughts about why her
family’s company is special.
“I think it’s a pretty amazing story that
the company started as an ice cream shop. Now it produces multimillions of
gallons of ice cream and distributes millions of gallons and scoops and
dozens of novelties,” she says. “We’ve done the right
things at the right time. We’ve invested in our people and our
facilities, and our technology. And most of all, we have never shied away
from our most important feature, which is quality. Throughout our company
— quality products, quality people, quality dealings. I think
that’s pretty incredible.”
PIERRE’S HISTORY
The Pierre’s Ice
Cream Shop opened its doors in 1932 at East 82nd Street and Euclid Avenue
in Cleveland. Its gourmet ice creams were prepared fresh each day in the
back of the store and sold by the cone or cup, or hand packed to take home.
Company founder Alexander “Pierre” Basset
aimed to market a premium ice cream and created the creamy, indulgent
recipe that is still used today. Pierre’s “French” ice
cream is made with a distinctive formula that uses a touch of
pasteurized egg yolks to enhance its rich taste and texture.
The popularity of Pierre’s products grew rapidly,
and the little shop quickly began churning out its specialty ice creams for
restaurants, country clubs and gourmet markets. It didn’t take long
for Pierre’s to outgrow its small space on Euclid Avenue.
A pint package was the first retail product produced.
French Vanilla, Swiss Chocolate and Strawberry comprised the entire
assortment and were sold through local grocery stores, pharmacies and
bakeries. An updated version of the original, eye-catching design is still
used today to remind consumers that Pierre’s is dedicated to
upholding the high quality recipes developed at the original ice cream
shop.
In 1960, the Royal Ice Cream Co., owned by Sol Roth,
acquired Pierre’s. Royal’s history was similar to
Pierre’s, starting out as a small ice cream shop with a commitment to
quality. Royal began showcasing the Pierre’s brand and special
recipe, and devoted all of its resources to expanding the line and building
the Pierre’s name.
The next direction for Pierre’s was expansion
into half-gallon packages, broader distribution beyond Cuyahoga County and
the creation of unique and popular flavors for sale in retail stores as
well as ice cream parlors.
In 1967, Pierre’s/Royal acquired the Harwill Ice
Cream Co. at East 65th Street and Carnegie Avenue. The company consolidated
all of its operations to that one plant and expanded the facility several
times before outgrowing it. Through the years, Pierre’s made numerous
expansions and relocations, each time into larger, more efficient
facilities. But over those several moves, Pierre’s remained within
three miles of its original location in downtown Cleveland.
In April 1995, Pierre’s moved into its current
state-of-the-art distribution center and office headquarters at East 65th
Street and Euclid Avenue, just one mile west of the original Pierre’s
shop.
Pierre’s remains family-owned and managed.
Company president Shelley Roth — Sol Roth’s daughter —
and her management team maintain a tradition of quality and innovation that
has kept the brand a regional favorite for nearly three quarters of a
century.
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