Tart Taste Makes Frozen Yogurt Hot Again

August 21, 2008

New York-- Leonardo DiCaprio has a Red Mango yogurt machine in his office. Paris Hilton and Lindsay Lohan have been photographed clutching Pinkberry yogurt cups while ducking the paparazzi.

Frozen yogurt, trendy during the 1980s and early '90s, has made a comeback -- but this time with an edge. Companies selling the soft stuff are opening stores with hip decor and pulsating music that draw a young crowd.

Veterans of the last yogurt boom, including TCBY, Penguins, and Tasti D-Lite are still operating, but their newer rivals have a different business model -- going after a younger market that wants not just a frozen dessert, but an experience. The question for Pinkberry, Red Mango and the rest is whether they'll be able to grow into national brands -- especially since their target market is known for having fickle tastes and a short attention span.

Moreover, the industry is already getting crowded. In Los Angeles, where the industry's latest incarnation began about two years ago, consumers can now choose from chains like Snowberry, Roseberry, Berri Good, Kiwiberri, Yogurtland, Yogurberry and IceBerry.

The concept behind the craze is to keep customers in the store, rather than have them buy their yogurt and leave. And so the decor at a Pinkberry includes $350 Philippe Starck chairs and $391 Le Lint lights.

"We're trying to create the coffeehouse environment," said Dan Kim, chief executive of Red Mango. "We're creating an ambiance, a point of relaxation, a meeting place."

Pinkberry and Red Mango generally offer just two flavors -- plain and green tea -- and they are more tart than the previous generation's products.

"They started in Los Angeles and flourished there for a reason," said Tom Coggia, a Seattle resident who tried Pinkberry after hearing the buzz. "Because L.A. is all about image and hype and being seen -- being seen doing things that are cool. People see a photo of Paris eating Pinkberry and they want it."

The big chains have their roots in South Korea. Shelly Hwang and Young Lee, two South Korean immigrants, launched Pinkberry in West Hollywood in 2005.

Pinkberry now operates 59 locations in California and New York, and plans to have 75 open by the end of 2008. Red Mango operates 30 shops in seven states, with plans to open dozens more in the coming year.

Some believe the tartness of the new kind of frozen yogurt might hinder it from catching on with Americans who prefer sweet desserts. Pinkberry and Red Mango use active cultures, which increases the healthy attributes but increases its tartness.

Pinkberry CEO Ron Graves said the company has certainly benefited from its pop culture fame but feels Pinkberry has the product to back up all the hype.

"We're not out there trying to get people to endorse Pinkberry," he said. "It has been a natural phenomenon."