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Like a bucket of cold water, news of ice cream parlors increasing their prices 15% for the summer season was received with equally cold feelings. Just as it is happening with other foods, ice cream cannot escape the inflationary wrath. Bigger chains stated that prices won’t change till the season is over so ice cream lovers are looking for roughly the same prices for their favorite flavors up until March of next year. Just to put things into perspective the price for a 2 pounder (1 kilogram) may range from 23 pesos/kg (u$d 6) to 70 pesos/kg (u$d 17-18) in the case of premiums.

Manufacturers think they can get away with the increases given that they are well below official inflation figures of about 25%/year. As it usually happens, they blame their own cost chain to have pushed prices up (raw materials, etc.) and thus, increases are only being transfered to the final consumer.

With this latest increase, prices have gotten to where they were before the collapse of the currency in 2002. At the time, 1 kg of ice cream was approximately u$d 16/kg.- Just like with many other items, prices have reached the same comparative value they had with the old parity of  $ 1 – u$d 1 pre-collapse. Still, inflation has not been an obstacle for some of the national chains to keep their expansions current. One of the cheapest products in the market belongs to the Grido chain, with 850 branches and headquarters in Cordoba. They are pricing their products at around $23/25 pesos /kg. Grido will be opening another 40 ice cream shops in the city of Buenos Aires and the outskirts during 2011.

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1 Comment »

  1. The meaning of the phrase “ice cream” varies from one country to another. Phrases such as “frozen custard”, “frozen yogurt”, “sorbet”, “gelato” and others are used to distinguish different varieties and styles. In some countries, such as the United States, the phrase “ice cream” applies only to a specific variety, and most governments regulate the commercial use of the various terms according to the relative quantities of the main ingredients.

    Comment by Alda Leckman — May 14, 2013 @ 10:16

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