Australian Convenience Store News & C-Store Exhibitions

Frozen Carbonated Beverage (FCB) and Granita have the potential to be big money spinners at the right site, but there's more to being successful in the frozen beverage game than simply installing equipment and waiting for the cash to roll in.

Frozen Carbonated Beverage appeals to the younger crowd
The biggest brand name in FCB is undoubtedly 7-Eleven's Slurpeee, which has been around for years. Mobil Quix outlets have also had success with their own brand, but it's taken both companies a long time to see a return on their investment.

Although the price has reduced somewhat over the past two years, FCB machines are anything but cheap If your site has sufficient volume, you can now get equipment from some of the larger syrup (soft drink) companies for around $10,000. You should also factor in installation costs of around $1,000. This is still a substantial amount of money for most operators, so it pays to make sure you're going to move enough product to make it worthwhile. Alternatively, small machines rent from as little as $200 per month, but you'll still have to keep volume up to see any profits.

A profit projection supplied to us by JL Lennard, one of the established suppliers of FCB equipment in Australia, shows how much money can be made from FCB at the right site. Obviously, the more product that can be moved, the higher the potential profit. By installing a two- or three-barrel FCB machine, you can offer a choice of flavours to attract more customers.

Most FCB products are quite sweet and appeal to younger customers, generally between 10-17 years of age, who will come to your site specifically to purchase FCB. Self serve is the way to go.

FCB equipment is generally well presented, available in a range of colour options and easy to use. Installation, however, requires a three-phase power supply, CO2 gas bottles and constant water supply.

Granita can offer a wider range of product
Where FCB appeals to the younger age group, Granita manufacturers and distributors say that Granita can appeal to more consumers by offering a wider range of product.

Granita, a frozen non-carbonated beverage, is available in a variety of designer flavours plus the usual cordial mixes. Examples include fruit juices, "mocktails", iced coffee and even frozen yoghurt drinks. With such a wide variety of beverages it is possible to maintain customer interest.

One obvious benefit of Granita over FCB is the initial purchase cost of equipment. A two-bowl Granita machine starts at around $3,500 (plus GST) or there is the option to rent equipment for as little as $3.40 per day.

According to Simon Whittaker of Harbin Gartrell, one of the reasons that FCB equipment is so expensive compared to Granita is that much of it is manufactured in the USA, where, Australia has a poor exchange rate.

The complexity of FCB equipment is the other contributing factor to its cost disadvantage. Don Watchorn from ACS West Vend, distributor of Promek Granita machines says, "Granita dispensers provide a superior refreshment without all the huge installation costs of FCB machines. With no need for gas lines, cylinders or water pipes, these machines need only a 10 amp power point, which makes it all simple and easy.

"The one and only advantage that FCB has ever had over Granita is that it provided a continuous supply of frozen product. In terms of costs, profitability and retail impact, Granita has always had it all over FCB," Mr Watchorn said. "Granita's only disadvantage has been the need to refill, but now things have changed. Convenience store operators can now buy a machine that offers continuous refilling, but without the costly plumbing, gas installation maintenance and power bills that goes with FCB."

All agree that Granita offers substantial cost benefits over FCB.

Cost comparisons
"FCB machines can cost up to $1,500 per year to service, whereas a Granita machine costs only around $100 per year," claims Simon Whittaker. "And the cost of product equates to just 0.15 cents per 325ml cup - less than the cost of FCB product."

Andrew Murray from Avem, a leading distributor of Granita Equipment and other dispensing equipment to the C-Store industry, agrees. He says that a $3.50 mix in a 10-litre mixing bowl will give 30 x 325ml drinks at $1.50 each. If you do the sums you'll see that's a $45 return on $3.50 worth of mix. Avem distribute the Bras and Ugolini range of granita machines, which have gained enormous popularity due to their reliability and small footprint. Mr Murray says that the reliability can be attributed to the unique patented magnetic drive, which, in the event of a "freeze up," ensures the machine cuts out prior to breaking. By cutting out the drive shaft, gearing and other expensive components are saved from damage and the need for costly replacement.

Mr Murray maintains that Murray FCB and Granita are generally mutually exclusive. "The FCB demographic is predominantly 5 to 17 year old children who are attracted by the novelty of bubbles," he said, "and the sweetness and volume of the product. Granita generally appeals to a more mature palate - hence its success in bars and clubs, as well as the C-Store channel.

"Even with more expensive mixes, up to $12 per 10-litre bowl, product can be sold at $2 per 325ml cup which still provides an attractive return," says Mr Murray. "That equates to a $60 return on $12 of mix."

Due to the relative simplicity of Granita equipment, Simon Whittaker from Harbin Gartrell claims that Granita has a much longer service life than FCB. "We have been supplying Wendy's with Granita equipment for 15 years and most of that equipment is still operating today," he said. "In fact, the only way we can replace it is by offering new, updated equipment."

With little more than a freezer unit and the mixing arm, there are few complicated parts in a Granita machine. "Not much can go wrong with a Granita machine if operated correctly and regularly cleaned and maintained. It's only when operators put too much water into the mix that the product can freeze up and cause damage to the machine," says Andrew Murray.

As Don Watchorn says, "Down time is profits lost forever."

Frozen Carbonated Granita - the best of both worlds
Bob de Groot from Curtin Food Service Equipment says that his company has acquired the distribution of the Italian SPM range that combines the benefits of FCB with the simplicity of Granita. He says Ice Boom Fizz is the world's first and only Frozen Carbonated Granita dispenser. The Ice Boom Fizz transforms any branded carbonated drink, pre or post mix or Granita syrup, into a fizzy slush product.

"This is a new category offering the best of both worlds", said Mr de Groot. "It's Frozen Carbonated Granita".

According to Mr de Groot, Frozen Carbonated Granita dispensers are easy to maintain and keep clean. "High levels of hygiene are maintained through a constant supply of low pressure CO2 in the sealed, pressurised bowls creating an aseptic environment. Products taste better and keep longer. This applies to milk based products and sorbets. Quality is consistent and product is fresher," he said

Mr de Groot claims that the purchase price of the Ice Boom Fizz FCG dispenser is only around 25 percent more than the standard Granita dispenser of the same brand that the company also distributes. The post mix compatible unit is around 40 percent of the price of an FCB machine and has running costs equivalent to those of a Granita dispenser.

Other Considerations
Whether you opt for FCB, FCG or Granita equipment at your site, the product won't sell without the proper point of sale presentation.

Andrew Murray says equipment should be located in a highly-visible area of the store with high traffic and that flavours should be continually rotated to attract customers. He also recommends introductory promotions including free tastings, to introduce customers to "the refreshing and interesting flavours" available from the granita equipment.

Equipment should also be clearly branded using the backlit displays offered with the majority of equipment on the market. Don Watchorn says, "Most important is the impulse appeal - if people don't see the product they won't buy it." He points out that ACS West Vend's machines are very high impulse and visually appealing. The clear round or rectangular bowls allow customers to see how good the product looks before they taste it.

When looking at the purchase of equipment, Andrew Murray warns, "Don't go for the cheapest machine in the heat of the moment. It's not going to do you any good if it breaks down and you can't get it fixed for two or three days. Make sure you buy equipment off a reputable company that will give good service and back-up. Look for nationwide service and support, spare parts in your nearest major city fully trained technicians available 24 hours a day, 7 days a week.
"Also, make sure the company you purchase your ingredients from offers regular product deliveries. The last thing you want is to run out of product or to place an 'out of order' sign on your machine, says Mr Murray.

For the success of Granita Slusheee distribution, the quality of the syrup is crucial," says Don Watchorn. "ACS recognised this several years ago and has for many years been manufacturing and supplying what has been declared the best Granita syrup in the world by leading European Granita specialists. This syrup is supplied under our own Slusheee trade brand," he said

Whether you opt for FCB or Granita at your site, if you do some research before making a purchase and present the product professionally, there are good profits to be made from frozen beverages.