PinkBerry & RedMango Skepticism Part Deux
I talked recently about why I don’t think the Red Mango & PinkBerry thing will end very well (see my recent post here). Today’s AM New York had a similar article with a lengthy title - Pinkberry, Red Mango ignite new frozen yogur craze with a tart spin, but will it last?.
While many of our viewpoints are similar, there were a couple of choice quotes which I thought were useful/interesting or which added to the case for why this might not end well.
1st quote
“The question is, are you going to just be a niche player or will you be a national chain,” said Harry Balzer, vice president of NPD Group, a consumer marketing research firm that tracks how Americans eat. “They clearly are getting a nice buzz within the population. But we often mistake our willingness to try new things as a trend.”
2nd quote
“Still, this could be a fad that comes and goes like the last, something that Heidi Miller knows about. In 1981, the former bodybuilder opened Heidi’s Frogen Yozurt in a cramped storefront tucked into a shopping center in Irvine, Calif. She built the company to 120 locations before cashing out by selling an 86 percent stake in the company in 1989. The chain is no longer in operation.”
Heidi’s Frozen Yogurt which I never heard of could definitely be the trajectory of these guys. The point that I raised in my earlier post still holds true here. Similar to Heidi, the founders of Red Mango, Pinkberry and the early investors may (and will likely) do quite well. It’s the later guys who will get burned as that is when the fad or the growth runway will end.
Tags: AM New York, pinkberry, red mango, yogurt
