DOWNTURN CHILL: New Zealand Natural no more

The heat is on but the cautious Calcutta consumer is reluctant to cool off with an ice cream.

Ice-cream sales have slumped in the city over the past few months, forcing one brand to flee town and another to shut a few shops. There will be one serving less of ice-cream on the platter this downturn-hit summer with New Zealand Natural exiting. And there will be two less scoops of Mama Mia with no more kiosks at Hiland Park and INOX (City Centre).

“Our business was not doing well and so we had to close down,” said the franchisee of New Zealand Natural for Calcutta. “Demand was high last summer but sales dipped very badly during monsoon and winter.”

New Zealand Natural, headquartered in kiwi country, had arrived in March 2008 with a parlour on Wood Street and then opened one at Mani Square in June. Both have closed down.

“We were not earning enough to allow us to pay such high rentals. Our annual turnover was just not up to the mark,” admitted the franchisee. “Our target sales were between Rs 7,000 and Rs 8,000 daily. But that had dipped by 50 per cent.”

Bringing the ice cream from New Zealand was pushing up costs, but that was proving to be a factor in Calcutta alone as the sales figures in Delhi and Mumbai remained healthy.

With a starting price of Rs 45 for a single scoop, New Zealand Natural was positioned as “a premium product” in that segment. “But it seems Calcutta is just not ready to pay for it,” rued the franchisee.

That the Calcutta consumer is in no mood to splurge is confirmed by Natasha Aggarwal Roy of Mama Mia. “General purchasing power is down and footfalls have dropped at the malls and multiplexes. Sales have gone down by 30 per cent from last year’s target sales,” she revealed.

Calcutta-based Mama Mia is now hedging its bets and rationalising operations. “We have closed down at Hiland Park and City Centre (INOX), but we have a new outlet on Park Street. It’s about weathering the storm and being where you have optimal chances of doing well,” explained Natasha.

That would hold true for much more than just ice cream this summer as sellers scramble to cut costs and yet lure more buyers.