Baskin Robbins brand is melting – Newspaper Kommersant No. 224 (7425) dated 12/02/2022

The Moscow factory BRPI, which has been producing Baskin Robbins ice cream under license for almost 30 years, could lose the rights to the brand. The company registers a new brand BRandICE, and franchised cafes change signs. BRPI may reduce costs through royalty savings, but will likely be forced to reformulate.

In October-November, the Russian manufacturer of ice cream under the Baskin Robbins brand JSC BRPI (formerly Baskin Robbins Production International Limited) filed applications with Rospatent for the registration of BRandICE trademarks. The inscription is made in blue and pink colors, brands are registered according to ice cream and cafe classes. In November, BRPI also received declarations of conformity for the production of ice cream under BRandICE. And on one of the domains of the company with the Vegan ice cream line, a new brand is already being used.

The BRPI has been in existence since 1994. It was created by businessman Yuri Abrahamyan as a joint venture with the British structure Baskin Robbins on the basis of the Moscow Cold Storage Plant No. 9, which was also headed by Mr. Abrahamyan. In addition to the production of ice cream, BRPI developed the Baskin Robbins cafe chain in the Russian Federation on a franchise basis. According to 2GIS, there are more than 40 outlets in Moscow today.

In 2009, Yuri Abrahamyan died, and a corporate conflict began between his heirs, the media wrote. In the report of the British Retailing Eastern Ltd, which owned the BRPI for 2014, the beneficiary is called L. Adamyan, who may be the last wife of Yuri Abrahamyan, Leila Adamyan. Agnessa Osipova, who is referred to in the media as the daughter of Mrs. Adamyan, is now the head of the BRPI.

Registration of new brands may be associated with the loss of the right to use the Baskin Robbins brand, Kommersant sources say. One of the managers of the Baskin Robbins cafe in the Moscow region confirmed to Kommersant that he received a notice about a brand change about a month ago and should change the sign from December 1. BRPI and US Inspire Brands, which owns the Baskin Robbins brand, did not provide comment. Ms. Osipova also did not answer calls and messages from Kommersant.

As BRPI reported in May 2021, the factory’s capacity reaches 16.5 thousand tons per year, and the range includes about 200 varieties. Soyuzmoloko, Milknews and Streda Consulting estimated the entire ice cream market in 2021 at 527 thousand tons, of which more than 60% are accounted for by the ten largest players. Alexey Gruzdev, CEO of Streda Consulting, says that Baskin Robbins products were mainly presented in their cafes, therefore they occupied a limited market share, and above all in the premium segment. At Perekrestok, Baskin Robbins ice cream costs from 549.99 rubles. for 500 ml. BRPI revenue in 2021 grew by 33%, to RUB 1.43 billion, net profit was RUB 105 million.

Franshiza.ru expert Anna Rozhdestvenskaya notes that Baskin Robbins remained in Russia for a long time, given the situation, which can be explained by close ties with the BRPI, which has been paying royalties to an American company for almost 30 years. She said BRPI could keep the cafe partner network after the change of signage to BRandICE, especially if it lowers the prices of products for partners due to savings on royalties. There are only a few players in the ice cream parlor market and BRPI had its own advantages, including its own production, the expert adds.

As Aleksey Gruzdev notes, if BRPI retains its recognizability and elements of the Baskin Robbins corporate identity in its design, the name change is unlikely to have a negative impact on sales. But Baskin Robbins most likely has a patented formula, which means that new lines will have to be developed, he adds. According to the expert, this year the consumption of ice cream in Russia may decrease by 2-3% yoy, while the decline in purchasing power and difficulties with exporting products will play their role already in the next season.

Anatoly Kostyrev