The Paradox of Popularity and Costs in Mexico’s Ice Cream Industry
The ice cream industry in Mexico faces a unique economic paradox: it’s an immensely popular product, yet its cost structure is becoming increasingly demanding. Unlike other gourmet segments that have embraced premiumization, ice cream thrives on recurrence and volume. Raising prices, even by a few pesos, could break the consumption habit of families who include it in their daily spending.
Beatriz Rodríguez of Neverías Frody: Maintaining Volume, Price, and Identity
In an interview with Bistronomie from El Economista, Beatriz Rodríguez, General Director of Neverías Frody, explains why resisting price hikes today means sustaining volume, pricing, and brand identity rather than selling more expensively. She warns that the sector is going through one of its most challenging moments, with persistent increases in raw material costs, energy, and a cumulative rise in the minimum wage directly impacting labor-intensive businesses.
Frody: Growth Without Encumbering
In this environment, Frody has become a representative case of economic resistance within a traditional industry. With over 50 branches and centralized production, the brand has adopted a counter-current strategy: absolute specialization in ice cream, stringent operational control, and uniform pricing regardless of flavor or location.
“We raise prices once a year, around 5-6%, trying to stay as close as possible to inflation. However, we also absorb a lot internally because we don’t believe in making a popular product more expensive,” explains Rodríguez. The decision isn’t minor: flavors with costly ingredients like pine nuts or dulce de leche are sold at the same price as more economical options, a policy that seeks consistency with the brand’s inclusive discourse.
Inflation, Wages, and Daily Consumption
The rise in the minimum wage, which Rodríguez acknowledges as a necessary social advancement, has also redefined the sector’s profitability. “Our payroll accounts for nearly 80% of our operations. We applaud the wage increase, but as an industry, we can’t always reflect it in our prices,” she affirms. The result has been a general reduction in margins and increased operational discipline.
Key Questions and Answers
- Q: How does Frody maintain its pricing strategy amidst rising costs? A: Frody adjusts prices annually by around 5-6% to keep up with inflation. They absorb most cost increases internally, prioritizing affordability over raising prices for a popular product.
- Q: What impact has the minimum wage increase had on the ice cream industry? A: The near-80% payroll cost has made it challenging for businesses to reflect wage increases in their pricing, leading to reduced margins and stricter operational management.
- Q: How does Frody’s business model prioritize volume over high-ticket items? A: Frody focuses on selling more frequently rather than charging high prices. Their seasonal business model emphasizes efficiency and clear concept delivery, making the product itself secondary to these factors.
Looking ahead to 2026, Frody plans to consolidate its customer base rather than aggressively expand the number of stores. In a pressured market, ice cream serves as a barometer for popular consumption: when the economy tightens, it doesn’t disappear but compels businesses to rethink growth without severing ties with consumers.
The lesson from the ice cream business is clear: during inflation, survival lies not in product sophistication but understanding its role in everyday economics. In balancing price, volume, and identity, Frody has discovered a way to defy the times.
