CASE STUDY: PERRY’S ICE CREAM

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Perry’s Ice Cream, located in Akron, NY, manufactures branded and private label dairy products, including bulk ice cream, novelties and ice cream packaged for the consumer, hospitality and institutional markets.

SITUATION

Despite strong local brand recognition and a reputation for quality, overall sales had stagnated for several years. The bulk of sales were concentrated within a limited number of key accounts in the retail food industry. The loss of any would significantly impact profitability. Due to industry consolidation, they were competing against much larger multi-nationals such as Nestle and Unilever. The intensely competitive environment necessitated support of store promotions that further degraded profit margins. Management recognized the need for a comprehensive strategy to address these threats.

SOLUTION

Perry’s retained Insyte Consulting to assist in developing a strategic plan. In addition to providing a roadmap for growth and profitability, the objectives included installing a repeatable planning process and ensuring management alignment.

The company affirmed its mission and core values and then defined its vision for the future. After analyzing the company’s SWOT, customers and competitors, the team identified strategic goals, objectives, key performance measures and action plans.

As a result of the process, the team chose to emphasize bulk and packaged goods rather than novelty products to better leverage core competencies and provide the foundation for sustained, profitable growth. They increased focus on securing additional contract manufacturing business, both nationally and internationally. Perry’s packaging was redesigned to a consumer friendly, two-piece container. Finally, productivity improvements were implemented to improve profitability.

RESULTS

  • Company well positioned for growth and market expansion.
  • Landed several new contract manufacturing accounts including a Fortune 500 company.
  • Expanded into the Pittsburgh retail market.
  • Invested more than $8 million in new warehousing and production equipment.
  • Reduced offsite warehousing and related transportation costs.
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