Yoghurt trade explodes as shops try to freeze out ice-cream

Esther Han
March 5, 2013
The Age

Moochi and WOWCOW might sound like cartoon characters but there is nothing childish about the frozen yoghurt trade dominating the Sydney dessert scene.

In less than two years, more than 50 brightly lit frozen yoghurt parlours – including brands WOWCOW, Noggi, Moochi and Snow Monkey – have opened their doors to entice customers away from ice-cream and gelato.

With flavours such as green tea, taro and pineapple, frozen yoghurt stores are marketing their products as the healthy alternative for the diet-conscious.

But nutritionists are not convinced, warning that syrups and flavouring have hidden kilojoules.

”The WOWCOW original yoghurt has less bad fats than McDonald’s soft serve and Gelatissimo’s vanilla gelato,” said Melanie McGrice, of the Dietitians Association of Australia. ”But it has far less calcium than a tub of fresh yoghurt.”

Concerns over health messages have not deterred international frozen yoghurt companies from entering the Australian market.

South Korea’s Yogurberry opened nine stores in Sydney last year. American company Yogurtland has signed a deal to open 50 stores across Australia, starting with a shop in Campbelltown.
Woolworths has caught up with the craze, signing a joint venture with WOWCOW late last year, already opening a Melbourne store.

WOWCOW chief executive Carl Harwin opened his first store in 2007 after seeing the craze in the US. He owns four stores in Sydney.

”There are so many right now and it’s going to be difficult to compete,” he said.

Mr Harwin’s Newtown store now shares its yoghurt turf with rivals Zwirl and MooBerry.

Moochi chain owner David Bae said businesses offering substandard products could ruin the dessert’s reputation.

”We use fresh milk to make fresh yoghurt and when we say it’s natural, it’s natural,” he said. ”Others are mixing milk with water and selling an icier product. It’s not good.”

The trend has been a boon for retail landlords, Noggi defeating 30 frozen yoghurt brands to nab 20 square metres of prime retail space on George Street last year.