Cedar Crest continually developing new flavors

By: Chalie Mathews, Herald Times Reporter

Name of business: Cedar Crest Specialties Inc., but call the company and the phone is answered, "Cedar Crest Ice Cream."

Ownership: President Ken Kohlwey with his three brothers: Robert, vice president of sales; Bill, secretary, in charge of administration; Tim, vice president-distribution.

Robert is based at the company's Rice Lake distribution center with Tim and Bill in Cedarburg, the general office and primary distribution center, with Ken in Manitowoc where the ice cream and other products are made.
Origins of the business: The Kohlwey brothers started the business in 1976 after acquiring the Oak Brand Ice Cream Company distribution depot in Milwaukee. They then purchased a small ice cream company in Oshkosh and began manufacturing ice cream, sherbet and other products.

They eventually purchased a Lake-to-Lake ice cream plant in Manitowoc and closed Oshkosh operations. They began Lakeshore area production of Elephant Tracks and other flavors in March 1988.

The Kohlweys have purchased other plants and distribution routes in the past 20 years.

Location: "The Cow," 2000 S. 10th St., Manitowoc.

Phone number: (920) 682-5577

Web site: www.cedarcresticecream.com

Hours of operation: Production is during one extended shift, from 6 a.m. to 4 p.m.

The ice cream parlor's spring hours are 11:30 a.m. to 6 p.m., Sunday through Thursday; 11:30 a.m. to 7 p.m., Friday and Saturday, while staying open till 9 p.m. daily in summer and early fall.

Services provided/products sold: With the slogan "Creamier is better," several millions of gallons of ice cream per year in scores of flavors for thousands of accounts.

Vanilla continues as the top seller, but Cedar Crest makes traditional flavors like strawberry and chocolate, and also "limited edition" flavors.

Stargazer, featuring malted milk ice cream with Milky Way candy pieces and a caramel swirl, was the January to March special this year.

The current special is Blueberry Waffle Cone, which features chocolate covered waffle cone pieces in blueberry flavored ice cream with a blueberry swirl.

Chocolate Peanut Butter will be the summer special with fall's offerings including Deep Dish Apple Pie.

Ice cream comes in containers ranging from three ounces to three gallons, with hundreds of thousands of 1.5-quart containers sold in grocery stores in Wisconsin, Illinois, Michigan, Minnesota  and Iowa. The parlor features various sundaes and several different flavors with a current new offering Deep Dark Secrets with chocolate pie chips and brandy espresso ribbons in chocolate ice cream.

Among its other products are Blue Moon ice cream and Strawberry Cheesecake Yogurt sandwiches, Black Cow Cup (a root beer float), as well as Choco Chiller malt cups and juice-filled treats like Cherry Smart Pop with each four-ounce cup featuring a quarter cup of fruit.

"Frog Spit Lemon Lime" is a new vitamin fortified flavored ice offering.

How has business changed since opening: Ken Kohlwey said no computers were in the plant two decades ago. Now, almost all of the equipment is run by computers resulting in better quality control and a more consistent product.

Who are the customers and from where: The parlor attracts ice cream lovers from Manitowoc County and across America, even overseas, who may be visiting friends or relatives or just passing through the area.

But parlor revenue is just a very small fraction of Cedar Crest's total income. Sales to grocery store chains, as well as independent stores and parlors in Wisconsin account for 85 percent of revenue, with clients in the other four states about 15 percent.

"We like to concentrate close to home and saturate the markets we are already in," Kohlwey said, citing excellent relationships with family-owned grocery store chains including Wisconsin-based Festival Foods, Sendiks and Woodman's.

Cedar Crest Ice Cream is no longer in Wal-Mart and most Roundy's grocery stores. Kohlwey said Roundy's "wants to push their own private label and keep national brands." However, his ice cream is in the Manitowoc Copps Food Center.

How is marketing done? Current and future sales are generated through sales representatives and merchandisers, as well as a drivers-route sales force.

Cedar Crest is big into special events with exposure at Summerfest and other Milwaukee ethnic fests, the Wisconsin State Fair, Road America and it is the official ice cream at Wisconsin Timber Rattlers baseball games.

Cedar Crest has several partner brands including Good Humor, Ben & Jerry's, Klondike, Popsicle and others. Kohlwey said a newer productive partnership has been with Milwaukee-based Palermo's Pizza with Cedar Crest drivers taking ice cream and pizza into the greater Minneapolis market.

Kohlwey said Cedar Crest has cut back on advertising during the recession. It seeks to get its product into retail customers' hands via sales at grocery stores.

What are the keys to future success: Kohlwey said Cedar Crest will constantly come out with new products.

"For example, this year we will be rolling out reduced fat-no sugar added vanilla and butter pecan, as well as two new yogurt flavors, strawberry cheesecake and chocolate chunk," he said.

Factors not under control of ownership-what is challenging: Kohlwey said energy costs, governmental regulations and weather, which may impact ingredient costs like berries form California and pecans from Georgia. Health insurance costs are a constant challenge.

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