From the Archives
Washington State Dairy Dollars Sell Ice Cream
Excerpted from The Ice Cream Trade Journal, September
1948.
A realization of the
immense potentialities in ice cream not only from the industry’s
standpoint but for overall dairy economy is well illustrated in the current
program of ice cream promotion now being conducted by the Washington State
Dairy Products Commission, a state-sponsored body — a program, which
in effect, was set in motion by The Ice Cream Trade Journal.
Probably nowhere else is a state agency devoting so
much attention to promoting the sale of ice cream in the conviction that
ice cream is not a stepchild of the dairy products family and furthermore,
represents an important element in the continued well-being of the dairy
economy.
The program probably represents the first time in the
history of the industry that any publication can be credited with being the
direct inspiration of an ice cream selling campaign involving the support
of dairy farmers, producers, ice cream manufacturers and, of course, the
retailers in an entire state.
It all began, to quote Fred Olsen of the Washington
State Commission, in the following fashion:
“Our whole program on ice cream originated from
an address entitled ‘Food Store Opportunities for Ice Cream’
given by Vincent M. Rabuffo, editor of The Ice Cream Trade Journal, before
the convention of the New England Association of Ice Cream
Manufacturers.” (This address was one of a series of talks make by
the Trade Journal editor before state and national associations of the
industry beginning in 1944.)
“Then,” continued Mr. Olsen, “we
read every article on merchandising ice cream published in the Trade
Journal on which we could lay our hands.” (These articles were part
of the material prepared by the Journal’s editorial staff as part of
the guidance which has resulted in a tremendous increase in sales through
dry stops such as supermarkets and grocery establishments.)
“We then reached the simple conclusion,”
Mr. Olsen continued, “that we were doing a poor job of merchandising
ice cream in Washington.”
The Washington Commission has set up a Merchandising
Division to work with food retailers to help them do:
1. A better job of merchandising dairy products.
2. Take American Dairy Association national
merchandising promotions down to the state level and arrange for tie-ins
with related food industries and promotions by the retailers.
3. Enlist aid and support of the dairy distributors to
merchandising events, making use of their advertising and sales divisions.
4. Preparation of stories and advertisements for food
retailer publications.
5. Public relations, publicity, displays at
conventions, showrooms, fairs, etc.
The Commission realized that while ice cream was being
sold in a great many food stores, it was not being merchandised to the
point where it could be a major profit item to the food store operator.
The big problem was to sell the latest methods of
merchandising not only to the food dealer, but the ice cream manufacturer
and distributor as well.
The opening gun in the campaign was fired at the Dairy
Institute held at the College of Washington, which, in effect, is that
state’s ice cream convention. Jack Macdonald of the Jiffy Bag Co.
told the ice cream and dairy industry of some of the methods and campaigns
in ice cream-food store merchandising in different parts of the country.
Since then, advertisements by the Commission promoting
ice cream have appeared in publications circulated among grocery and meat
retailers throughout Washington state and adjacent areas.
Feature articles on “Take Home Ice Cream”
similarly appeared in many of the publications designed to impress the
retailer with the merchandising possibilities of this type of ice cream.
During June Dairy Month, front covers and more feature
articles on the “Ice cream and cake” promotion of ADA were
presented to the dealers.
Ice cream manufacturers tying in with the drive
distributed reams of point-of-purchase merchandising material. Recipe
leaflets for distribution to the housewife were distributed in hundreds
of stores to make dealers and consumers ice cream conscious. m
CME/IDFA WORKSHOP:
NEW CASH-SETTLED BUTTER FUTURES CONTRACT
The International Dairy Foods Association (IDFA) and
the Chicago Mercantile Exchange (CME), the largest derivatives exchange in
the world, will be sponsoring a series of free workshops around the
country this fall to introduce the U.S. dairy industry to the latest price
risk management tool for the butter market. The workshops are open to
anyone interested in learning more about CME Cash-Settled Butter,
CME’s first dairy futures contract to trade exclusively on the
CME® Globex® electronic trading platform. It is anticipated that
these workshops will be of particular interest to butter buyers and
sellers, as well as companies that buy or sell butterfat in any form,
including raw milk and bulk cream as well as most traded dairy products.
The new CME cash-settled butter futures contract is designed to meet the
needs of food and dairy companies that have exposure to butterfat price
risk but do not want to take physical delivery of the product. The new
contract will also differ from the existing CME butter futures contract in
that the trade unit will be 20,000 pounds of Grade AA butter versus 40,000
pounds. The contract will be cash settled based upon the U.S. Department of
Agriculture’s (USDA) monthly weighted average price in the United
States for butter. The new contracts began trading September 19. For
workshop dates and locations, visit
www.idfa.org. m
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