Peru’s Sweet Spot: How Freddo Ice Cream is Redefining Retail Growth and Localized Flavor Strategies
Peruvian families are buying ice cream by the liter – not for individual servings, but for gatherings and outings. This surprising trend is just one indicator of the explosive growth Argentinian ice cream chain Freddo is experiencing in Peru, a market that’s quickly becoming its most dynamic outside of its home country. With plans to invest another $700,000 in three to four new Lima locations within the next year, Freddo isn’t just expanding; it’s demonstrating a compelling model for international retail success built on sensory experience, localized innovation, and a surprisingly resilient business model.
Beyond the Scoop: The Sensory Retail Experience
Freddo’s success in Peru isn’t simply about offering a premium product. It’s about crafting an immersive experience. The aroma of freshly baked waffle cones wafts through each store, a deliberate tactic to engage customers from the moment they enter. This focus on the sensory – the sight of artisanal ice cream, the smell of vanilla, the taste of fresh milk imported directly from Argentina – differentiates Freddo from competitors and justifies a higher average ticket price of S/ 50-70. This strategy taps into a growing consumer desire for experiences, not just products, a trend increasingly vital in a competitive retail landscape.
Diversification as a Shield: The Rise of the “Café-Gelateria”
While ice cream remains the core offering, Freddo’s adaptability is proving crucial. Recognizing seasonal fluctuations – ice cream sales dipped from 84% of total revenue in summer to 72% in winter – the company strategically bolstered its coffee and bakery offerings. This diversification wasn’t a reactive measure, but a proactive strategy to maintain consistent revenue streams. Today, coffee and bakery account for up to 25% of turnover, demonstrating the power of a hybrid retail model. This shift highlights a broader trend: successful retailers are increasingly becoming multi-faceted destinations, offering complementary products and services to weather economic cycles and cater to evolving consumer needs.
Localized Flavors: The Lucuma Strategy and the Power of “Ownable” Innovation
Freddo isn’t simply transplanting its Argentinian menu to Peru. The company understands the importance of localization. The upcoming launch of a lucuma-flavored ice cream in January 2026 – a flavor exclusive to the Peruvian market – is a prime example. “We want the consumer to embrace the brand and feel it as their own,” explains Eduardo Felgueras, Commercial Director of Freddo. This strategy of creating “ownable” innovations – flavors and products unique to a specific market – fosters brand loyalty and differentiates Freddo from global competitors. It’s a lesson for any international brand: true success lies not in imposing a global identity, but in integrating with local cultures and preferences.
The Supply Chain Commitment: Quality Over Compromise
Maintaining quality is paramount for Freddo, even if it means temporarily discontinuing a flavor. If a key ingredient, like Italian pistachios, isn’t available, the flavor is removed from the menu rather than substituted with a lower-quality alternative. This unwavering commitment to quality, backed by FDA-approved production facilities in Rosario, Argentina, builds trust with consumers and reinforces the brand’s premium positioning. This approach underscores a growing consumer demand for transparency and authenticity in food production. Learn more about FDA standards.
Delivery and the Hybrid Future of Consumption
While the in-store experience remains central to Freddo’s strategy, delivery services like Rappi and PedidosYa account for 10% of sales. This demonstrates a willingness to adapt to changing consumer habits and embrace the convenience of online ordering. However, Freddo isn’t relying solely on third-party delivery. The focus remains on driving in-store traffic, leveraging the sensory experience to create a destination that delivery simply can’t replicate. This balanced approach – embracing delivery while prioritizing the physical store – is a smart strategy for navigating the evolving retail landscape.
Peru as a Testbed: Implications for Regional Expansion
Freddo’s rapid expansion in Peru – exceeding initial projections by opening five stores instead of three in its first year – positions the country as a key testbed for future growth in Latin America. The company’s expansion metric of three annual openings, typically seen elsewhere in the region, is being significantly surpassed in Peru. This suggests that Peru offers a particularly fertile ground for Freddo’s model, potentially due to a combination of factors including a growing middle class, a strong family-oriented culture, and a willingness to embrace international brands. This success could pave the way for accelerated expansion into other markets with similar demographics and consumer preferences.
Freddo’s story in Peru isn’t just about ice cream; it’s about a smart, adaptable retail strategy that prioritizes experience, localization, and quality. As consumer preferences continue to evolve, the brands that thrive will be those that can seamlessly blend the physical and digital worlds, cater to local tastes, and consistently deliver on their promises. What innovative retail strategies are you seeing succeed in your region? Share your thoughts in the comments below!
