Brandon C and Tim C.
BMKT 161 – 4A
Earnest Ice Cream – An Environmental Scan
There is a shift currently happening with North American consumption and spending habits. As
information about health and wellness becomes more readily available, consumers are now leaning
towards healthier, whole food choices that are environmentally responsible and sustainable. One
Vancouver company is rising to the forefront of that arena to provide Vancouverites with their favourite
indulgence in a more traditional way.
Company Description
Earnest Ice Cream Parlour and Café (further referred as EIC), located in East Vancouver on 3992 Fraser
Street, opened in August 2012 as a production facility, a retail store, and a "scoop shop". Owners Ben
Ernst, 34, and Erica Bernardi, 31, produce, package and distribute the ice cream themselves. In 2013,
Ernst and Bernardi made Western Living's 5th Annual 40 Foodies Under 40 list (Burgoyne). According to
the Earnest Ice Cream website, Earnest Ice Cream's name represents "honesty and conviction", and their
tag line, "Seriously Good", means "serious, honest and transparent". (Earnest & Bernardi) The owners
emphasize “local, seasonal, and creative flavours ... with as small a carbon footprint as possible". (Scout
Magazine) Pints of Earnest Ice Cream are sold in their Fraser Street
location, as well as selected local retailers in Vancouver and the
North Shore. In keeping with their desire to follow sustainable
business practices, the pints are packaged in reusable glass jars that
sell for $11, which includes a $1 deposit for the jar. Use of
returnable and reusable glass jars for ice cream is considered unique
in the industry. The ice cream produced by Ernst and Bernardi falls
into the category of "artisanal ice cream", and they use locally foraged ingredients, such as dairy products
from Chilliwack, and feature one-off, funky flavours, as well as the classics. The scoop shop also serves
espresso and affogatos (ice cream with hot espresso
poured on top) with locally roasted Matchstick coffee.
Over 6 5
Gen er at ion Z
14 %
17 %
Demographic and Socio-Cultural Forces:
Baby Boomer s
Careful analysis of the current census data for Canada
20%
Gen er at ion Y
25%
in 2011 reveals an interesting mix for British Columbia
and more specifically, greater Vancouver. Generational
Gen er at ion X
24%
dissection shows that Baby Boomers lead the national
population with
Gen er at ion Z
Gen er at ion Y
Gen er at ion X
Baby Boomer s
Over 6 5
Table 1 2011 Census. Total Population in Greater Vancouver, B.C. = 603, 490
Earnest Ice Cream Environmental Scan
Brandon C and Tim C.
BMKT 161 – 4A
22%, but drop to third largest population in Vancouver with 20%, behind Generation Y (26%) and
Generation X (24%). It appears that in Vancouver, Baby Boomers do not hold the majority vote, though
still account for the lion’s share of income and spending. Focusing closer into the Vancouver area
surrounding EIC, there is a population base of 578,000 people, accounting for 14.3% of the total B.C.
population.
Gender seems to be fairly split among those surveyed about ice cream purchases, though females do
slightly outnumber their male counterparts. The ethnicity mix in the Vancouver area indicates that
Chinese populations comprise the second largest subsection with 29% of the total Vancouver population,
just behind the single origin population of 49%. Firsthand observation discovered that the majority of the
EIC customers were of Asian decent. Of the 60 people observed during the final 30mins of operation on
Saturday, January 25th, 56 people appeared to be Asian, and 4 people were Caucasian. This observation
seems counter to information collected by Tsai and Tan in 2006 that suggest that Asian households spend
as much as 10 points less on dairy products, sweets and oils than other North American households.
Greater Vancouver Population
603K
4% increase over previous census
Gen Z – 100,440 (16.5%)
Gen Y – 157,085 (26%)
Gen X – 145,065 (24%)
Baby Boomers – 118,970 (20%)
Over 65 – 81,930 (13.5%)
B.C. Population:
4.4 Million
7% increase over previous census
Gen Z – 952,525 (21.5%)
Gen Y – 844,590 (19%)
Gen X – 945,235 (21.5%)
Baby Boomers – 968,985 (22%)
Over 65 – 688,715 (16%)
Population Census in Vancouver, B.C.
160,000
140,000
120,000
100,000
80,000
60,000
Percentage of Total
40,000
Population Totals
20,000
0
Percentage of Total
Population Totals
Generati Generati Generati Baby
Over 65
on Z
on Y
on X Boomers
16.6%
26.0%
24.0%
19.7%
100,440 157,085 145,065 118,970
13.6%
81,930
Earnest Ice Cream Environmental Scan
Brandon C and Tim C.
BMKT 161 – 4A
Competitive Forces:
The concept of frozen desserts is not new or rare. In fact, within a three to seven kilometer radius of EIC,
there is a multitude of competitors including: La Casa, Dolce Amore, Menchies, Pink Berry, and of
course, long-time player, Dairy Queen. The challenge becomes how to differentiate a company from the
pack.
Product
Fortunately for EIC, the majority of competitors feature a frozen yogurt concept and do not produce
traditional ice cream. Different still, Dairy Queen markets soft serve ice cream, not the premium hard ice
cream that EIC has recognized as a niche market that can be filled. Grocery store regular ice cream
competes more strongly in this category. According to the survey results of published by Kantar Media,
regular ice cream is the preferred choice among Vancouverites with a higher than 40% market share.
Premium ice cream places third in preferences with only 12.8%.
Price
Earnest Ice Cream compares at a higher price point than all of its competitors at $11.00 per pint (`17oz).
Pinkberry, the runner up, features a 25 ounce take home container at $11.00 as well. It should be noted
that factored into EIC’s price is the use of an environmentally-friendly glass jar for packaging, unlike all
of its competitors who have opted for disposable containers. Furthermore, EIC offers a $1 deposit
returned to their customers should they wash and return the jars. This return policy not only fosters
environment responsibly but also promotes return business.
Place
EIC is the last to join the club by setting up a retail location to base its operations. Prior to the storefront
on Fraser Street, EIC frequented farmers markets as a means of bringing ice cream to their customers. An
advantage that all competitors share over EIC is with the hours of operation. Currently, Earnest Ice
Cream is only open to the public Thursday through Sunday. Every other vendor operates with a sevendays-a-week schedule. According to EIC employees, extension of store hours is currently in discussion,
however due to a higher than expected winter sales season, they have yet to put extended hours into
effect. Despite being open fewer days of the week, EIC does stay open later than many of its competitors,
closing the doors at 10pm. Pinkberry closes at 9pm and Dolce Amore at 8pm.
Promotion
Dairy Queen is by far the most active in regards to advertisements, running national television ads on a
regular basis. All others in the field have chosen word of mouth and social media strategies. In this
regard, EIC has emerged as a leader. In fact, employees of EIC cite the popularity on social media as an
explanation for their current success. Earnest Ice Cream as a commanding lead of Twitter followers with
Earnest Ice Cream Environmental Scan
Brandon C and Tim C.
BMKT 161 – 4A
3392 as of January 30, 2014. In order of decreasing followers: Menchies (a self-serve frozen yogurt
concept) has 987; the official Twitter account for Pinkberry Canada trails with 1721; Dolce Amore with
436; and La Casa finishes with 366.
Technological
Earnest Ice Cream has received considerable media attention, which they have capitalized upon without
the need for a budget for advertising spreads in local newspapers or catchy commercials. They have
received very favourable reviews, and have developed a strong and positive online presence. It is not
difficult to find multiple links, raving about their ice cream and directing the reader to their retail
locations and their scoop shop. Earnest Ice Cream has Twitter and Facebook accounts, along with their
own website that includes an informative video posted to “Vimeo”, clearly demonstrating the passion
Ernst and Bernardi have for ice cream and for what they bring to the table.
Earnest Ice Cream is an artisanal ice cream maker that uses traditional ice cream production processes.
Bernardi is quoted saying, “We joke that it’s an ice cream factory, but it’s really just us pinting by hand.”
(Berman, 2013) The business has grown from selling ice cream from a vintage-style Worksman tricycle
with a front-loaded cooler to miniature truck to a retro-styled storefront. (Gill, 2013) Prior to opening
their storefront location, Ernst and Bernardi produced Earnest Ice Cream at the commercial kitchen at the
Woodland Smokehouse and Commissary, an artisanal food production
facility in East Vancouver, and sold ice cream at local Farmer’s Markets.
Much of the work is done manually, as Ernst and Bernardi reportedly work
80 to 90 hours per week. With the move to their storefront location, the
production has transferred there, and has grown to nine employees in just
over a year. (Scout Magazine) The store’s retail component includes large
freezer units with glass to display the ice-cream pints. The only
technology evident in the scoop shop is an iPad with a credit card reader
used as a point of sale terminal.
Economic
In 2013, British Colombia’s economy was in a slight decline due to a subdued job market, weak retail
sales, and decreasing housing market activity. (Business Council of BC, 2013) In an economic climate
such as this people may choose to eat at home more often, purchasing ice cream at local supermarkets at
much more affordable prices. However, although Earnest Ice Cream’s pints are pricy at $10 each, for the
niche clientele in trendy East Vancouver, these artisan ice creams may be viewed as an affordable luxury
Earnest Ice Cream Environmental Scan
Brandon C and Tim C.
BMKT 161 – 4A
that can fit into their budgets. A survey by Technomics found that Canadians named ice cream as their
top comfort-food dessert. (Technomic, 2013)
There were approximately 385,900 small businesses operating in British Columbia in 2012, accounting
for 98 per cent of all businesses in the province. About 82 per cent of these small businesses were microbusinesses with fewer than five employees. The accommodation and food services industry was the
largest provider of new small business jobs in British Columbia between 2007 and 2012. (BC Stats, 2013)
Earnest Ice Cream is an example of an independent ice cream producer, retailer, and food service
employer that has expanded from a "mom and pop" operation to having nine employees in the last year.
The Canadian ice cream category was predicted to grow by 3% in 2012. (Euromonitor, 2012) In the UK
high-end ice cream, like Earnest Ice Cream's artisanal flavours, has seen the fastest growth, up 7% in the
year ending September 2012. No figures on consumption were found for Canada, but each year, British
people consume on average around seven litres of ice cream. In Moscow they sell ice cream even
throughout the frigid winter months in minus 30C weather, debunking the argument that ice cream sales
are seasonal. In Italy, ice cream is even eaten for breakfast, such as in a brioche stuffed with ice cream
that is dipped into a cappuccino. Like other trends these consumption patterns may migrate to Canada.
(The Guardian, 2013)
Regulatory
Vancouver Coastal Health Authority (VCHA) administers the Food Premises Regulation for East
Vancouver where Earnest Ice Cream Shop and Parlour is located. The Food Premises Regulation outlines
public health requirements for businesses that supply and serve food to the public. VCHA is responsible
for licensing, inspecting and responding to complaints regarding food facilities within their jurisdiction.
All employees of premises that serve food to the public must be certified BC's FOODSAFE education
program, so this would apply to Earnest Ice Cream’s employees. The FOODSAFE Program is a
comprehensive food safety training program designed for the food service industry and managed by the
BC FOODSAFE Secretariat in partnership with the BC Centre for Disease Control, the BC Regional
Health Authorities, the BC Restaurant and Food Services Association and WorkSafe BC. The
MarketSafe Program is a food safety training program for producers who make, bake or grow products to
sell at farmers' markets or other types of temporary markets. Ernst and Bernardi would have been
required to be certified in MarketSafe, when they were selling via their trike at Farmers' Markets. (BC
Ministry of Health) Ernst and Bernardi transitioned from their tricycle to a miniature truck, because
VCHA regulations would only allow them to sell pre-packaged ice cream sandwiches from the tricycle.
(Gill, 2013) Establishments that are registered by the Canadian government for ice cream production
Earnest Ice Cream Environmental Scan
Brandon C and Tim C.
BMKT 161 – 4A
must meet specific requirements that are written in the Dairy Industry Act. The premises and
manufacturing equipment must be kept clean and in good sanitary conditions. (UBC, 2013) In addition,
Earnest Ice Cream must consider other factors in operating its production and retail operations, such as
garbage disposal and ventilation requirements; rodent and insect control; and access to restrooms for staff
and customers.
Interestingly, there was no nutritional information posted in the Earnest Ice Cream Café or on the website.
Only the staple flavours like Salted Caramel or Tahitian Vanilla have such information printed on the
labels of their pints.
Conclusion
Operating a business in a downward market in Vancouver is challenging enough, not to mention
having to jump through all of the many regulatory hoops. Doing so where your product has the
potential to compete with many other similar businesses is a whole other issue. Fortunately for
Earnest Ice Cream, there seems to be a niche market for premium ice cream with simplicity that
is reminiscent of the honest and transparent days of old. The aging B.C. population is primed to
crave the traditional luxury treat of their youth, while increasingly influential Generations X and
Y are drawn to the adventurous flavour combinations and strong commitment to environmental
responsibility and sustainability. Earnest ice cream embraces the nostalgia of a scoop shop that
Baby Boomers are sure to recognize, all the while utilizing modern technologies and the
marketing and communication power of social media. Owners Ben Ernst and Erica Bernardi seem
to have discovered and capitalized on a market that feels minimal pressure from external forces.
Earnest Ice Cream Environmental Scan
Brandon C and Tim C.
BMKT 161 – 4A
References
Statistics Canada. (2012). Vancouver, British Columbia (Code 5915022) and British Columbia (Code
59) (table). Census Profile. 2011 Census. Statistics Canada. Retrieved Jan 23, 2014.
http://www12.statcan.gc.ca/census-recensement/2011/dp-pd/prof/index.cfm?Lang=E
BCStats.(2012). Socio-Economic Profile – College Region 15. BC Stats. Retrieved Jan 26,
2014.http://www.bcstats.gov.bc.ca/StatisticsBySubject/SocialStatistics/SocioEconomicProfilesIndices/Pr
ofiles.aspx
Tsai, S. & Tan, L. (2006) Food-at-home expenditures of Asian households. Monthly Labor Review,
129(6), 15-26
Digitaluce. (2010). Contact. Gelateria Dolce Amore. Retrieved Jan 24, 2014.
http://gelateriadolceamore.com/contact/
Ten Story Studios. (2011). Contact Us. La Casa Gelato. Retrieved Jan 24, 2014.
http://www.lacasagelato.com/contact.htm
Pinkberry Inc. (2011). Pinkberry Metrotown. Pinkberry Canada. Retrieved Jan 24, 2014.
http://www.pinkberrycanada.com/frozen-yogurt-store/intl/bc/burnaby/3/metrotown.html
Menchies (2014) Locations – Cambie. Menchies Frozen Yogurt Canada. Retrieved Jan 24, 2014.
http://www.menchies.com/frozen-yogurt-shops/frozen-yogurt-cambie-bc
https://www.kmrsoftware.net/netquestapp/pmbquickreports/default.aspx via PMB Database
Burgoyne, J. (n.d.). Western Living's 5th Annual 40 Foodies Under 40. Western Living Magazine.
Retrieved January 28, 2014 http://www.westernlivingmagazine.com/FD/0313.40-Foodies-Under-402013-4.html
Earnest, B., & Bernardi, E. (n.d.). Earnest Ice Cream Seriously Good. Retrieved January 28, 2014
http://earnesticecream.com/wp/
East Van's "Earnest Ice Cream" Has Joined The Growing Scout Community. (2014, January 24). Scout
Magazine. Retrieved January 28, 2014 http://scoutmagazine.ca/2014/01/24/welcome-east-vans-earnestice-cream-has-joined-the-growing-scout-community/
Berman, S. (2013, February 6). Beautiful Relationships: Sweet Cooperation Helps Local Biz Thrive. The
Tyee. Retrieved January, 2014 http://thetyee.ca/News/2013/02/06/BC-Local-Biz-Thrives/
Gill, A. (2013, July 30). When it's delivered to your door, ice cream couldn't be cooler. The Globe And
Mail. Retrieved January 28, 2014 http://www.theglobeandmail.com/life/summer-living/when-itsdelivered-to-your-door-ice-cream-couldnt-be-cooler/article13500506/
Owners Of Earnest Ice Cream Set To Give A "Hot Talk" On October 29th. (2013, October 21). Scout
Magazine. Retrieved January 28, 2014
http://scoutmagazine.ca/2013/10/21/heads-up-owners-of-earnest-ice-cream-set-to-give-a-hot-talk-onoctober-29th/
Earnest Ice Cream Environmental Scan
Brandon C and Tim C.
BMKT 161 – 4A
BC Economic Review and Outlook. (2013, July). Business Council of BC. Retrieved January 25, 2014
http://www.bcbc.com/content/946/BCERO_2013_02.pdf
Coolly Craveable: Ice-Cream Treats Delight in Canada. (2013, July 23). Technomic Blog. Retrieved
January 25, 2014, https://blogs.technomic.com/coolly-craveable-ice-cream-treats-delight-in-canada/
BC Small Business Profile 2013. (2013). BC Stats. Retrieved January 26, 2014.
http://www.resourcecentre.gov.bc.ca/pdf/SB_Profile_2013.pdf
Ice Cream in Canada. (2012, November). Euromonitor International. Retrieved January 27, 2014,
http://www.euromonitor.com/ice-cream-in-canada/report
The Future of Ice Cream. (2013, August 28). The Guardian. Retrieved January 26, 2014,
http://www.theguardian.com/lifeandstyle/2013/aug/18/ice-cream-future-of
Food Safety. (n.d.). BC Ministry of Health. Retrieved January 29, 2014,
http://www.health.gov.bc.ca/protect/ehp_foodsafety.html
Earnest Ice Cream Environmental Scan