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Quality and flavour scoop the competition (03/09/2007)

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  Viennese-trained chef Paolo Predonzan devises all sorts of imaginative flavours for the gelato-loving public of Hong Kong
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  Partners Paolo Predonzan and Vincent Gauthier found the recipe for success with I-Scream Ltd
The gelato counter at swanky supermarket Great was screaming for attention. No wonder. I-Scream Ltd is titillating Hong Kong's taste buds with over 300 flavours ranging from popular chocolate and exotic cinnamon to the more unusual kimchi and beer flavours.

Italian gelato maker Paolo Predonzan, who trained in Vienna with one of the top gelato artisans and who has owned gelateria in Italy and Germany, came to Hong Kong five years ago to visit his friend Maddalena Gonzo married to Canadian consultant Vincent Gauthier.

He was surprised that there were no gelato outlets in Discovery Bay where the Gauthiers lived. "Hong Kong has such perfect weather for gelato. There are at least 10 months of hot weather as opposed to about six months in Europe."

Impressed with Hong Kong and convinced that a gelato business could thrive on the island, Mr Predonzan moved to Hong Kong a few months later only to find that someone else had already set up a gelato outlet in Discovery Bay. Undaunted, he pooled his resources with Maddalena and Vincent focusing initially on B2B business and supplying to restaurants. "We started small and steadily built up our clientele."

Boom times

Their cautious approach has paid off handsomely. The economy is booming, new restaurants are opening and business is doing well.  They are now supplying between 6,000-9,000 litres of gelato to nearly 65 restaurants, clubs, hotels and 13 Park'n'Shop supermarkets. Mr Gauthier said the SME with a start-up capital of HK$1 million (US$128,000) has monthly sales revenue of HK$600,000 (US$77,000) and a staff of about 14. They also have a new 5,000 square feet factory in Yau Tong, Kowloon, with the most up-to-date equipment to ensure a quality end product.

"Everyone else has moved their manufacturing facilities to the Chinese mainland but we want to be in Hong Kong, as close to our customers as possible," Mr Predonzan said. 

I-Scream Ltd is patterned along the family business models of Northern Italy – where both Mr Predonzan and Ms Gonzo come from – and faces challenges typically experienced by many SMEs. "I think we are doing very well after four years. We have an outlet in Great and we will be hiring more staff in the next few months. We are small but flexible and we are lucky as we came on the gelato scene early as there is definitely more competition now," said Mr Gauthier. Although everybody is looking at the mainland for expansion, he said "we will be there when we are ready" and it is not their strategy to "expand fast, franchise and sell out".

"We don't want to franchise as we cannot control the quality," he added. Indeed, quality is a word, stressed over and over again by Mr Predonzan, the consummate artisan. "I never want to compromise on quality. If I can't get chocolate from Valrhona, I simply won't make that flavour until I get it."

He said he is "absolutely glad" he came to Hong Kong where everything is so convenient and you can get around very easily. "The city is very multi ethnic and the chefs here are exposed to so many varieties of culture and cuisine. I am learning all the time so I can improve my knowledge of gelato," he said. "I work seven days a week but even if you call me at 11pm and ask me to customise a certain flavour the next day, I can do it, no problem. When you love your work, it is not work."

Right timing

It's a good time for the gelato business. Now, chefs use gelato not only for desserts but also in appetisers and main courses. Some of the greatest restaurants in the world offer them in bacon, foie gras and tomato flavours. Mr Predonzan is very clever with his interpretations and challenges the taste buds as well as the imagination. For their Great outlet, he comes up with inventive flavours to match the supermarket's food promotions. For example, for an approaching Great Britain Food Promotion, he intends to offer a Guinness Stout flavour to represent Ireland, shortbread and whiskey for Scotland, a Caerphilly cheese for Wales - even sausages and HP sauce for an authentic English flavour.

"It is a great way to catch attention. Nobody wants to buy a boring scoop of parmesan," he laughed. 

Mr Gauthier said it was easy to set up a business in Hong Kong because of the city's efficient supporting services such as banking, sourcing and supply chain management. "Hong Kong is a sophisticated market. People recognise quality. They understand that our gelato is hand-made and they are willing to pay for quality."

After all, the gelato is made from the freshest and best of ingredients from around the world - mangoes from India, pistachio and hazelnut paste from Italy, and frozen fruit from France. 

The business has grown 300 per cent over the past three years but Mr Predonzan is quick to point out that he could never have done it on his own. "I'm a chef, Vincent has experience with big business and Maddalena handles all the marketing, public relations, administration and accounts. Together, we are a team, we make all the decisions and we make it work."

Related link
I Scream Ltd


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