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The Honolulu Advertiser
Posted on: Monday, August 4, 2008

Baskin-Robbins, local partner to expand business in China

By Elaine Kurtenbach
Associated Press

SHANGHAI, China — Ice cream chain Baskin-Robbins and a locally based partner have agreed to expand the ice cream chain's business in northwestern and eastern China, with plans for 100 new stores in the next decade.

Baskin-Robbins, which opened its first mainland Chinese store in 1993 in Beijing, faces surging competition from rival ice cream makers such as Dairy Queen, Haagen-Dazs and Cold Stone Creamery, whose shops have popped up even in out-of-the-way malls and grocery stores in recent months.

"We are always looking at growing not only in China but also outside in the region," said Srinivas Kumar, chief brand officer for Baskin-Robbins Worldwide, which with 5,800 outlets says it is the world's top ice cream chain.

The company plans to open its first outlet in Shanghai by the end of the year, said Lin Xin Bin, general manager of Shaanxi Stellerich Food & Restaurant Co., a Taiwan-owned company based in north-central Shaanxi province that will act as Baskin-Robbins' local partner in Shanghai and Shaanxi.

Exact investment figures were not disclosed. However, the two sides said Shaanxi Stellerich would invest "hundreds of millions of yuan" — tens of millions of dollars — in expanding the Baskin-Robbins franchise chain.

That shop will likely be located in either Xujiahui, a bustling shopping district, or in Jing'an, another somewhat more upscale shopping area along the city's famous Nanjing Rd., Lin said.

Shaanxi Stellerich is the franchise agent for KFC and other foreign food operators in Shaanxi. It has 30 KFC outlets.

Baskin-Robbins, a unit of Canton, Massachusetts-based Dunkin' Brands Inc., already has 24 stores in Beijing and 16 test outlets elsewhere in the country with another local partner.