The Bear’s Ice CreamAsad Akhund

Heather BartonMark BushnellMelanie Kern

Value PropositionCreate a tasty, healthier ice cream option by enriching ice cream with milk protein concentrate.

Opportunity● More than half of consumers were looking to increase

their protein intake in 20141

● Of their food budget, Adults (18-44) spend 25% on specialty food, and millennials spend 33%2

● Frozen dessert sales are up 28.2% in 20142

● Sales in the US ice cream market are expected to reach $10.8 billion this year.

1-Sloan, A. E. "What's Fueling Customers' Focus on Freshness?" Food Technology Jan. 2015: n. pag. Web.

2-"Trends." Specialty Food Association. N.p., n.d. Web. 01 Feb. 2015.

Customer Segments and Market Potential

● Athletes● Health conscious people● Vegetarians (future line extension with Iron, B12 enrichment)

Total U.S. Ice cream Market: $10.8MMMOur target market: $435MM (North East U.S. region, age 17-50, health conscious)

Key Survey FindingsChocolate and Cookies & Cream were most popular.

Simplified House of Quality

TasteTexture

Fat Protein Air

++ -

+++ --

Product Description and Formulation

Ice Cream Protein (g) Fat (g) Sugar (g) Calories

Base 7 15.4 20.4 248

Chocolate High in Protein 10.6 14.8 19.7 254

S'mores Enriched in Protein

14.1 14.3 19 260

S’mores uses a chocolate base with higher protein levels and incorporates graham cracker and marshmallow fluff.

Intellectual Property● No patent anticipated● Production process is no different from

other ice creams● Keep formula as a trade secret

Competition

Competitive FrameworkProduct Price* Protein* Calories* Fat* Sugar* Serving Size

The Bear’s Ice Cream $0.75 14 g 260 14 g 19 g ½ cup

Ben & Jerry’s (S’mores) $1.00 4 g 310 16 g 29 g ½ cup

Haagen Daz (Rocky Road) $1.14 5 g 290 17 g 22 g ½ cup

Muscle Milk (Chocolate Shake) $3.69 25 g 230 9 g 3 g 14 fl. oz

Equivalent Muscle Milk portion size $1.05 7 g 70 3 g 1 g 4 fl. oz. (½

cup)

*On a per serving basis

Line ExtensionsCurrently: Chocolate and S’moresFuture: Cookies & Cream, Strawberry Cheesecake, … other nutritional enrichments

Expand to ice cream bars, similar to current protein bars for on-the-go athletes.

Risk Management

RiskLack of cooperation with Cornell Dairy

Major ice cream companies launch directly competitive

products

Loss of intellectual property through

contractors

Mitigation Strategy

Discuss previous Cornell Dairy

contracts to find which strategies have

worked in the past.

Work with a contractor that does not produce their own ice cream.

Develop a strong local following before

expanding geographically.

Develop line extensions to stay

ahead of our competition.

Iron clad contracts and non-disclosure

agreements.

Complete background checks on the

contracting company.

DOE and PrototypingRound 1● MPC levels set to increase

protein by 50 and 100%.● Test Cornell dairy base (14%

fat) and IC base (10% fat)

Noise Factors:● Age● Melting/refreezing

Trial MPC Base --

1 1 1 1

2 1 2 2

3 2 1 2

4 2 2 1

DOE Results● Major Responses - highest customer priorities

o Textureo Tasteo Holistic

● Key Findingso Cornell Base was less sensitive to protein additiono Cornell Base was less sensitive to ageo Additional protein made ice cream less sensitive to

ageo Additional protein made ice cream resistant to melting

Process Description and PFD

Currently produced in small batches.

Final parameters based on contractor equipment.

HACCP

Hazards and Control

Step Hazard Control

Pasteurization Microorganisms (Listeria, Salmonella, C. Botulinum, etc)

161F for 15 seconds

Adding Mix-Ins Spoilage, microorganisms Certification from supplier

Filling/Packaging Metal Fragments X-Ray metal detector

Filling/Packaging Allergens Correct Allergen Labeling

Storage Spoilage, microbial growth Store Below -25C

Sales, Profits, Cash Flow

Year 10Sales: 9MM units, $27MM in revenue (at $6/quart MSRP)Profits: $9.2MM

Cost Analysis

Cost Category Year 5 Year 10

Capital Investment N/A N/A

Production $4.12MM $9.27MM

Marketing, sales, support $0.96MM $2.16MM

Rent $0.30MM $0.30MM

Payroll $0.43MM $0.43MM

Sensitivity Analysis

Spending in Years 1 & 2Total: $3.5MM● After year 2, we

expect to be self sufficient

● Project production costs to grow with sales

Further Optimization and Product Deployment● Now

o Confirmed customer interesto Determined initial financial, process, and safety evaluationso Two rounds of prototyping

● Needo $3.5 MMo Offering up to 25% of ownership in companyo Terms to be discussed

Moving Forward● Next Steps

o Confirm details of fund raising

o More prototyping, finalize flavors

o Expand marketing surveys o Full DOE to create our own

baseo Find contract manufacturero Find retailers and

distributors and launch

Thank you