The question of a market for the product is most vital. If the ice-cream is manufactured and a market cannot be found, the business is a failure. This is more especially true with ice-cream than the other dairy products since practically no middle-men or commission merchants will handle it. Another vital question is the cost of marketing; if too high, the apparent profits of manufacture may be required to meet this cost and again the business is a failure.
—The growing demand for ice-cream is indicated by the figures in Chapter XVII. The question might naturally be asked why this demand is increasing. There are three possible answers to this. The consumer in the past regarded ice-cream as a delicacy to be indulged in only on special occasions. Now the food value is recognized and it is being consumed in large quantities as a food.
In the past it was often difficult to secure ice-cream in a satisfactory condition. This was due to a poor delivery system and a lack of knowledge regarding the handling. At present, however, these difficulties have been overcome largely.
In the hot summer weather, persons like to eat or drink some substance which is pleasing to the taste and at the same time has a cooling effect on the body; and no dish can replace ice-cream for this purpose.
This condition, namely, the demand for ice-cream in summer and the lack of it in winter, is a matter of great concern to the manufacturer. It gives him an unequal distribution of his business throughout the year. This is a decided disadvantage for several reasons: 1. It is hard to secure satisfactory help for a short period of time; 2. It is difficult to obtain milk products in sufficient quantities only for the hot weather; 3. It requires a large investment in equipment which is used only a part of the year. The usual result is that the ice-cream manufacturer is forced to pay a higher price for his milk products, if he takes them only during the summer. On the other hand, if the milk products are purchased by the year, a profit is realized during the period of large demand and the balance of the year they are handled in some other way with a view of breaking even or reducing the loss as much as possible. In order to be sure of help for the rush season, it is usually necessary to keep at least a part of the necessary summer force during the slack season. They can be employed in cleaning the plant and making the necessary repairs for the next rush season. The creating of a market for ice-cream in the winter is an unsolved problem. It has been overcome partially in some plants by making fancy or special ice-creams. They usually require more labor and hence sell at a higher price and are in demand for various society functions which are more common in the winter.
—Up to the present no investigations have been made dealing with the food value or healthfulness of ice-cream. It would seem that the previous statements about the food value of milk, cream, and butter would apply to ice-cream. Miss Rose[50] gives the following summary regarding the value of milk as a food:
[50] Rose, Flora, “Milk a cheap food,” Cornell Reading Course, Lesson III, 1917.
“With all the evidence in, no food bears the investigation of nutritive properties better than does milk. It is impossible to escape the conviction that not only is it a cheap food, but it is one whose value can hardly be estimated in terms of dollars and cents. It has been pointed out that:
1. Although milk is not the cheapest source of energy that can be bought, it is nevertheless an important source of energy, and the energy-yielding substances, the protein, the milk-sugar, and the milk-fat, have special value.
2. Milk is a cheap source of protein because the protein that it contains is of a kind particularly valuable for building tissue.
3. Ordinarily milk is the cheapest and most valuable source of lime, unless it is discovered that lime in water can take the place of lime in milk.
4. Milk is a valuable and cheap source of phosphorus.
5. Milk is deficient in iron, but the iron that it contains is particularly well utilized by the body.
6. Milk is the most important of the three foods, milk, eggs, and meat, which are the chief sources of a factor in foods that is soluble in fat, that is essential to growth and health, and that is called “fat-soluble A.”
7. Milk is one of the most important sources of a factor in foods that is soluble in water, that is essential to growth and health, and that is called “water-soluble B.”
Jerome Alexander[51] shows the effect of gelatine on the digestibility of milk products. The chief constituents of ice-cream are crystalloids; that is, substances that can form crystals, whereas gelatine is a most characteristic member of the group of non-crystallizing substances known as colloids. Research has shown that colloids or hydrosols as they are sometimes known may be divided into two classes or groups; depending on the way they behave when they dry out. The first group which includes those that can be redissolved after being dried, such as gelatine, are called the reversible colloids or reversible hydrosols. The second group, which includes those that cannot be redissolved after drying, such as pure colloidal metals, oxides and the like, are known as irreversible colloids or irreversible hydrosols. The reversible colloids are not sensitive but will stand the addition of most substances without coagulation. In the case of ice-cream, the addition of gelatine tends to prevent the coagulation of casein, which is an irreversible colloid and the important proteid or nitrogenous constituent of cows’ milk. For this reason gelatine renders ice-cream more readily digestible and therefore more healthful; as is well known, milk is immediately coagulated on coming in contact with the acid juices of the stomach. But in the presence of gelatine the casein is either prevented from coagulating or if it does coagulate the clots or curds are so fine grained that they dissolve very easily in the process of digestion.
[51] Alexander, Jerome, “The beneficial effect of gelatine upon the digestion of milk and cream,” “Ice-cream Trade Journal,” Vol. 5, No. 2.
The composition of ice-cream varies with the materials used. The flavoring material affects the percentage composition. The following are fair examples of the chemical composition of commercial vanilla ice-cream containing different percentages of fat:
Table XIV
Composition of Ice-cream Containing Different Percentage of Fat
| Sample Number |
Fat | Protein | Carbo- hydrates |
Water | Ash | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | 8 | .5 | 3 | .0 | 22 | .50 | 65 | .0 | 1 | .0 |
| 2 | 14 | .0 | 2 | .2 | 20 | .00 | 63 | .0 | 0 | .8 |
| 3 | 8 | .0 | 4 | .0 | 21 | .10 | 66 | .0 | 0 | .9 |
Ice-cream is often considered a possible source of ptomaine poison and typhoid fever. If not properly handled and allowed to melt and then returned and refrozen or made from poor materials, there may be danger of disease. But under the sanitary condition of most of the plants, especially the large ones, there is no more danger from ice-cream poisoning than from any other class of food.
—Believing that there is a general demand for ice-cream, the question naturally follows where is the most desirable location or market. Because of the large number of consumers, the city naturally offers the best market. If a large plant is planned, the usual system is to wholesale the ice-cream to the retailer. If a smaller plant is desired, the market may be a retail business only; in this case it may be a hotel, drug-store, soda fountain or summer resort. Several creameries are located on trunk lines of improved roads and make ice-cream as a side line, catering entirely to automobile parties.
—For the retailer the question of delivery is very simple, but for the wholesaler it is a very perplexing problem. There are three ways by which the wholesaler may make delivery: by express, automobile truck, wagons and horses.
If the plant is in a large city, the ice-cream may be shipped by express to retailers in the surrounding small towns. The distance that shipments can be made by express depends on the facilities of the railroad. If on a main line with fast trains, shipments may be sent 300-500 miles. Ice-cream should not be shipped so far that it will soften before it reaches the retailer.
In the city, the manufacturer must decide which is the more economical, to use horses and wagons or automobiles. Each has its advantages and disadvantages, some of which are as follows:
Advantage of automobile truck:
1. Can make quicker delivery than horses and wagon.
2. Can carry larger load.
Disadvantage of automobile truck:
1. Large initial cost.
2. Requires higher salaried person to operate it than to drive horses.
3. Cannot be used year round in some snowy localities.
4. Engine may be left running while making delivery. This is expensive.
5. Large loss in case of accident.
Advantage of horses and wagons:
1. Can be used year around.
2. Easy to get person to drive horses.
3. Not as expensive as large truck to purchase.
Disadvantages of horses and wagons:
1. Slower than automobile truck.
2. Liable to tire out in hot weather.
—This is so variable that even average figures would be misleading. The cost of delivery should be based both on the cost a gallon and the cost a load. These figures should be watched and a reason found for a marked increase. Otherwise, the cost of delivery may grow so that it will consume all profits. One of the large items is the ice necessary to pack the ice-cream in the retailer’s cabinets.
Fig. 77.—Ice-cream packing tubs.
—When drawn from the freezer, the ice-cream is placed in pack-cans or brick molds. When delivery is made to the retailer, the ice-cream is usually left in the pack-can. For delivery by express or to the individual consumer, the can is packed in a tub with ice and salt. The size of the tub varies with that of the pack-can. (Fig. 77.) The small tubs usually have bails and the large tubs handles on the side. For city delivery of wholesale ice-cream, the wagon or auto truck (Fig. 78) is equipped with a cabinet and the cans packed in these cabinets. This eliminates the heavy tubs. Ice and salt are carried for packing the ice-cream in the retailer’s cabinet. Most manufacturers furnish the retailer with a cabinet (Fig. 79) in which the ice-cream is packed until retailed. These cabinets are usually insulated. They are made in various sizes to hold one or several pack-cans of ice-cream. In the cabinet is usually a form which fits around each can so that it may be removed and another full one put in without the ice caving in. This form has numerous holes in it so that the cold air and brine can get to the pack-can. The cabinet is fitted with a large cover in which are smaller openings and covers for each can. These smaller openings are used when dipping the ice-cream.
Fig. 78.—Auto delivery truck for ice-cream.
Before delivery to the consumer or the retailer, the brick ice-cream is usually taken from the mold and wrapped in paper. This eliminates the return of the metal form. These bricks may then be packed in ice and salt or simply wrapped in additional paper, depending on how long the ice-cream must be kept before it is to be consumed. Several paper carriers have been devised, but they are not in general use.
The retailer makes his deliveries directly to the consumer, either to be eaten immediately or carried home.
When delivery is made to be consumed immediately, the ice-cream is dished with a measuring disher and placed in an individual dish. There are a large number of styles of these dishers. (Fig. 80.) Each has some sort of a knife or scraper to remove the ice-cream from the disher. The size is expressed in the number that it takes to make a quart. The disher is used as the measure whether the ice-cream is sold by the dish, in the soda glass or cone. A large amount is sold in the latter. There is no objection to the cone itself if it is made of pure harmless materials. It is often sold from push carts and venders’ wagons, where there is great opportunity for dirt to get into the ice-cream both before and after it reaches the consumers’ hands.
Fig. 79.—Ice-cream cabinet with sides cut away showing insulation and perforated cylinders in which the pack-cans of ice-cream set.
Another device through which a large amount of ice-cream is sold is the ice-cream sandwich machine. This places a slice of brick ice-cream between two wafers.
When the ice-cream is sold by the retailer to the consumer to be carried away and consumed later, it is packed in a heavy manilla paper pail. These vary in size from a pint to two quarts. If the ice-cream is hard and the pail wrapped in paper, it may be held for an hour or more before it begins to melt.
While the ice-cream may be made of high grade materials and under the most sanitary conditions, many of the places where it is retailed are not clean. The single-service paper plate and spoon are to be desired in preference to the dish and silver-plated spoon which is rinsed off in cold water. It is to the advantage of the manufacturer to see that the places where his ice-cream is sold are kept in a clean sanitary condition.
Fig. 80.—Different styles of ice-cream dishers.
—The manufacturer must keep the attention of the public centered on his ice-cream. This can be done only by advertising. There are several ways, but the best is to let the product advertise itself. If an ice-cream appeals to the desires of the consumer and is uniform, it will be in demand.
The newspapers may be employed also as an advertising medium. In some localities the advertisement has appeared for so long in some particular space in the paper that the consumer has become accustomed to look there to learn what special ice-creams will be made for holidays and Sundays.
The paid reading advertisement in the newspaper is a form commonly used. This differs from the ordinary form in being printed the same as any news item. It should not be too long and should be concise and clear to the reader.
The society columns should be watched and an effort made to sell one’s ice-cream at any large gathering. This is especially true of church functions. The person in charge may be communicated with either by telephone or a neat attractive letter. Extra effort should be made to have the ice-cream of good quality. It may not be profitable to furnish ice-cream at these functions, but if the advertising feature is considered it will be very valuable.
The bill-board is another means of advertising and is very effective in impressing the name of the ice-cream on the public. It is usually expensive.
The results of advertising are ordinarily hard to measure exactly, but it is a necessary part of the business. The value of advertising in the winter, when there is not a large demand for ice-cream and many specialties have to be manufactured, should not be overlooked. There are many schemes for advertising, and which will be tried and which rejected will have to be determined by the manufacturer. The underlying principle is the same in all. They should be attractive; they should state some fact about the ice-cream; the wording should be such as to induce the reader to try a dish. The value of advertising is especially difficult for a beginner to see. The amount of money that can or should be used for advertising will have to be determined by several facts, such as number of local newspapers, number of towns where ice-cream is sold, amount of education necessary to create a demand.
Under no circumstances, in any advertisement or in any other way, should a manufacturer run down the quality of his competitors’ products.
It is often desirable to have some short attractive expression to use with the advertisement.
—In the large plants, salesmen are necessary to call on the trade to sell the ice-cream and adjust any differences that may arise. The kind of salesman has much to do with the success of the business. He should be neat and clean in appearance; he must have the faculty of getting along with people; he must have good business ability and be able to make sales. It is not the first sale that counts but the repeated orders that are necessary to put the business on a firm foundation.
The success of a plant is not alone in being able to make ice-cream of good quality, although this may be the major item. The business management is very important. This consists of the buying, handling the workmen, making the sales and in general keeping track of the financial end of the plant. In many cases it is necessary to check up the losses.
—All raw materials used in the ice-cream should be purchased on the basis of their composition rather than by quantity. For example, it is very poor business to buy milk and cream for a certain price a quart or gallon regardless of the percentage of fat contained. The percentage of fat in the milk is largely influenced by the season of the year and the lactation period. Even more variable is the percentage of fat in the cream, the fat-content varying from the same creamery or same separator. Some of the causes of variation in the test of cream are: 1. Adjustment of the cream screw; 2. Richness of milk separated; 3. Amount of material used to flush the bowl; 4. Speed of the separator; 5. Temperature of milk when separated; 6. Rate of flow of the milk to the machine.
The composition of the other materials will vary the same as does the milk and cream. Each shipment should be tested to make sure that it is of the proper composition. This may take some time, but it pays in the end.
—There is no market quotation for any except the manufactured dairy products such as butter and cheese. Ordinarily the price of milk and cream follows that of these manufactured products very closely. The price of butter and cheese are quoted daily in New York City in the “Price Current” published by the Urner Barry Company. From this the price of milk and cream can be estimated. In some cases, the price of the fat in the cream is based on the price of butter.
—A simple yet complete set of books should be kept. A cost system seems best adapted and the most simple.
To obtain a cost system it is very essential that every penny should be accounted for and charged to the account for which the expenditure was made. The numerous accounts that will have to be maintained in order to keep this system should be classified under the headings of production costs and sales costs. In opening the accounts for production cost, it is necessary that the following heads should be carried:
1. Milk, cream, butter. Express should be added to the cost of the above where any of the same is shipped.
2. Labor. Salaries for ice-cream maker, mixers, and helper. The remaining help throughout the plant is carried under a different heading which does not apply specifically to the production department.
3. Supplies used. This account should be carried under several different headings, as:
(a) Sugar
(b) Milk powder
(c) Gelatine
(d) Gum
(e) Fruits
(f) Extracts
(g) Miscellaneous
4. Ice and salt (when ice and salt are used for the freezing of the cream). But in case mechanical refrigeration is employed for freezing and ice and salt for hardening, it should be charged to the production cost; otherwise it should be figured into the sales cost just the same as delivery or other expense.
5. Water and steam.
6. Sundry expense.
By keeping these accounts monthly, the production cost for every month is computed for the year.
Sales cost should include:
1. Rent.
2. Salaries.
(a) Executive.
(b) Office.
(c) Salesmen.
(d) Delivery drivers.
(e) Labor. (Can-washers and such other help as is employed).
3. Advertising.
4. Ice (as used in packing for deliveries).
5. Miscellaneous expenses.
6. Taxes.
7. Insurance.
8. Bad debts.
9. Postage and stamps.
10. Trucks, or horse and wagon expense.
11. Traveling expense.
12. Telephone and telegraphic expenses.
13. Salt.
14. Depreciation.
15. Repairs and replacements.
16. Stationery.
17. Shrinkage.
18. Such other items of sales cost as you may see fit to carry under separate headings.
Taking the number of gallons sold, it is an easy matter to divide this into any one of the numerous accounts under either the head of production or sales cost, which will give the cost a gallon of this account and place the manager in a position to keep in touch with every account as to the actual cost a gallon each month. By making comparisons month after month, it will be easy to determine wherein the costs are excessive.
—No ice-cream business is too small or too large to have a shipping clerk. In a small plant, the shipping may not require all one man’s time so that he may have other duties. The shipping platform and office of the shipping clerk in a large ice-cream plant is shown in Fig. 81. It is the duty of the shipping clerk to see that the orders are properly put up and that they are delivered on time. He must check the ice-cream to the drivers and see that each has the correct amount of salt and ice. It is sometimes the custom of the drivers to take extra ice and salt and sell it on the side. He must also check back any ice-cream returned by the drivers. The position of shipping clerk is one of the most important in the whole business management.
Fig. 81.—Shipping platform and office of shipping clerk in a large ice-cream plant.
—Every person who has charge of any part of the ice-cream business should make a report. By means of these daily reports, any leaks or losses may be checked up. It also makes easy the keeping track of the business. Forms for these reports are not included because the demand in each plant would probably be different. The receiving-room report should show the amount of milk and milk products received and the percentage of fat in each and the total receipts. The mixing-room report should indicate the amount of materials used. The freezing-room report should show the number of freezers of ice-cream made, the swell obtained in each and the total gallons. The shipping-room report should tell the number of gallons shipped out. The drivers’ report should show the amount of ice-cream received, the amount returned and the amount sold, to whom sold, whether cash or credit, and the cash and credit should equal the amount sold. These reports may be combined more or less, depending on the size of the plant. A loose-leaf or card system for filing in many cases would reduce the office work.
—In any business there are more or less losses. These are usually inversely in proportion to the efficiency of the business management. In ice-cream marketing, certain leaks or losses are liable to occur and these should receive special mention.
—Undoubtedly there is no part of the business that causes the manager more anxiety than the return of the empty pack-cans and tubs. This is especially true when a considerable part of the ice-cream is shipped by express. Many schemes have been tried to return these tubs, such as paying the drivers a percentage for the return of a certain number, charging the person to whom the ice-cream was sold for the can and tub, hiring a special man to look up the can and tub, and many others. The one commonly used by manufacturers is to have a distinctive color on the tub, their name and address and also a number. The shipping tags are made with a stub that is perforated so that it can be detached easily. When the tag is attached to the tub, the number is placed on both the tag and the stub. The stub should contain date and name and address of the party to whom shipped. It is often desirable to have the gallons and kind of ice-cream shipped on both the stub and the tag. This stub is filed in the office and when the tub is returned the tag is taken off and sent in and the stub bearing the same tub number put with it, indicating that tub has been returned. By looking at the stubs for which the corresponding tags have not been returned, it can be seen readily to whom, where, and when the tubs were shipped and what parties are not returning the empties.
—Because of the salt that must be used to harden the ice-cream, more or less gets on to the pack-cans and rusts them, especially if they are not washed as soon as emptied. These rusty cans may be retinned. Another satisfactory plan is to line the can with heavy manilla paper. These liners may be purchased to fit any size pack-can.
—Often the top of the can of ice-cream will become soft, due to the lack of salt and ice on top. Sufficient may have been put on but it jarred off while handling. This loss can be avoided by tying a piece of heavy paper or burlap over the top of the can. Heavy canvas covers may be purchased.
Sometimes a large amount of refrigeration is lost by putting the ice-cream into the hardening-room through the large door where persons pass in and out. A small revolving door (Fig. 82) will reduce this loss. There is a very rapid change of air when the hardening-room door is opened. The greater the difference in temperature, the more rapid the change. Soft ice-cream soon ruins the reputation of the business.
Fig. 82.—Revolving door used for putting the ice-cream into the hardening-room.
—When drawn from the freezer, the ice-cream should be put into the size pack-can in which it will be delivered to the consumer or retailer. If it is necessary to transfer from one can to another, there is a big loss in volume. This loss is probably caused by squeezing the ice-cream into the other container, which closes the air spaces.
When the ice-cream is handled in the retail store, a loss may be caused by the heaping up of the dishes. Several scrapers or levelers have been devised to insure a uniform sized dish. If the dishers are kept in hot water, they will work much better in hard ice-cream. Some sort of scraper, of which there are several on the market, should be used to scrape the ice-cream from the sides of the can.
Several laws apply to ice-cream. Some of these refer to the production of the milk and the balance are standard of quality based on chemical composition or standards for materials used.
—Most of the states have laws dealing with the sanitary conditions under which milk and cream may be produced. The following law[52] of Wisconsin is a good example:
[52] Dairy Laws of Wisconsin 1916, section 4607a.
“Adulterated milk, what constitutes. Section 4607a. In all prosecutions under the preceding section, or any other section of these statutes, or laws amendatory thereof or supplementary thereto, relating to the sale of adulterated milk or adulterated cream, the term adulterated milk shall mean: Milk containing less than three per centum of milk fat, or milk containing less than eight and one-half per centum of milk solids not fat, or milk drawn from cows within eight days before or four days after parturition, or milk from which any part of the cream has been removed, or milk which has been diluted with water or any other fluid, or milk to which has been added or into which has been introduced any coloring matter or chemical or preservative or deleterious or filthy substance or any foreign substance whatsoever, or milk drawn from cows kept in a filthy or unhealthy condition, or milk drawn from any sick or diseased cow or cow having ulcers or other running sores, or milk drawn from cows fed unwholesome food, or milk in any stage of putrefaction, or milk contaminated by being kept in stables containing cattle or other animals. The term adulterated cream shall mean containing less than eighteen per centum of milk fat, or cream taken from milk drawn from cows within eight days before or four days after parturition, or cream from milk to which has been added or introduced any coloring matter or chemical or preservative or deleterious or filthy substance or any foreign substance whatsoever, or cream from milk drawn from cows kept in a filthy or unhealthy condition, or cream from milk drawn from any sick or diseased cow or cow having ulcers or other running sores, or cream from milk drawn from cows fed unwholesome food, or cream contaminated by being kept in stable containing cattle or other animals, or cream to which has been added or into which has been introduced any coloring matter or chemical or preservative or deleterious or filthy substance or any foreign substance whatsoever, or cream in any stage of putrefaction; provided, that nothing in this act shall be construed to prohibit the sale of pasteurized milk or cream to which viscogen or sucrate of lime has been added solely for the purpose of restoring the viscosity, if the same be distinctly labeled in such manner as to advise the purchaser of its true character; and providing that nothing in this act shall be construed as prohibiting the sale of milk commonly known as ‘skimmed milk,’ when the same is sold as and for ‘skimmed milk.’ Milk drawn from cows within eight days before or four days after parturition, or milk to which has been added or into which has been introduced any coloring matter or chemical or preservative or deleterious or filthy substance, or milk drawn from cows kept in a filthy or unclean condition, or milk drawn from any sick or diseased cow or cow having ulcers or other running sores, or milk drawn from cows fed unwholesome food, or milk contaminated by being kept in stables containing cattle or other animals and cream from any such milk, or cream in any stage of putrefaction are hereby declared to be unclean and unsanitary milk or unclean and unsanitary cream, as the case may be.”
Most of the states have laws which determine the legal standard of milk. Anyone selling milk which does not meet the legal standard is liable to be fined. The laws of most states prohibit the taking of anything from or the adding of anything to the milk. This prohibits skimming and watering. Skim-milk must be sold as such.
—Some states have laws specifying that all glassware used in the Babcock test shall be standardized. Standard glassware shall bear a certain brand to identify it. This brand is placed on it after being tested by the proper state official. Some of the states have laws requiring the operator of the Babcock test to procure a license.
—In some states a concern to purchase milk or cream from the producer must have a license. This is to prevent parties not financially responsible from buying milk and later beating the producer. The license is given only on the filing of a bond.
In some cities ice-cream cannot be sold without a license. This is for the purpose of controlling sanitary conditions.
—Most states have legal standards for dairy products. The standard for the different states is given in Table XV[53].
[53] Melvin, A. D., “Legal standards for dairy products,” A8, 1916.
U. S. DEPARTMENT OF AGRICULTURE
BUREAU OF ANIMAL INDUSTRY
A. D. MELVIN, Chief of Bureau
LEGAL STANDARDS FOR DAIRY PRODUCTS
(Revised to July 1, 1915)
In the following statement, prepared in the Dairy Division of the Bureau of Animal Industry, are given the standards for dairy products as established in the several states, including Alaska, the District of Columbia, Hawaii, the Philippines, and Porto Rico. In all cases, unless otherwise expressed, the percentages stated represent minimum standards.
The department publishes these figures as given by various state authorities, but does not guarantee the correctness of the standards given.
Table XV.—Legal Standards for Dairy Products.