CARVEL GOES NICE AND SMALL WITH LIL' LOVE CAKES

ROSEANNE HARPER

FARMINGTON, Conn. -- Carvel Corp. here has introduced new smaller and lower-priced cakes that present an opportunity for supermarkets to reap incremental sales, Carvel officials told SN.

By introducing the "Lil' Love" six-inch, frozen ice-cream cakes, designed for "little special occasions," Carvel intends to "break out of the birthday box" and create more frequent purchases at supermarkets, as well as at its 450 freestanding stores, a Carvel spokesperson said.

The suggested retail for the cakes is $6.99. Carvel said the small cake should serve four to six people, compared to the larger-sized Carvel frozen ice cream cake, which serves up to 12 and retails for $12.99.

"The idea is to increase product usage," Steve Fellingham, Carvel's chief executive officer, told SN. "We felt there was always the potential to reach customers for everyday usage, as well as for birthdays and holidays."

As another Carvel official put it, "Whether it's a new tooth or a good grade in school, the cake is a good way to memorialize the event."

Fellingham said that four years ago, Carvel tried a somewhat smaller cake that retailed for $8.99. However, the company did not market that product aggressively.

"This is much more focused on moms and kids, and we have some great ads," Fellingham said of the marketing push for the new small-cake program. "We hired ad expert Jerry Della Femina to create the ad campaign."

Fellingham said a program offering a small cake as a reward for small accomplishments is particularly timely in an era when both parents are so busy.

Retailers should consider the everyday cakes as traffic builders as well as incremental sales builders, Fellingham added. The ad campaign will call consumers' attention to Carvel and to the fact that they can get the products in the supermarket, he said.

The company has changed its old slogan, "The Ice Cream Bakery," to "Surprise Someone Special Tonight." It is using the new slogan on point-of-purchase signs available to supermarkets.

The media ad blitz touting the Lil' Love cakes includes posters on buses and commuter trains and spot radio ads throughout the day, he said.

Carvel currently is ringing up approximately $65 million in supermarket sales, which is nearly a third of its total annual sales of $200 million, Fellingham said. He added that sales in supermarkets are currently up more than 20% compared with three years ago.