Our Story: Froffee is born

It all started when Cream&Honey co-founder, Niran, served as UC San Diego’s Public Relations Representative for the San Diego-based Jewish Agency. One of Niran’s responsibilities was to serve as the head for “Birthright,” a program that connects American Jews to their heritage by helping them embark on a life-changing trip to Israel. Drawing inspiration from his students, Niran recalls how “since I started working for the Jewish Agency, more and more students returned from trips to Israel and they just couldn’t stop blabbering about this miracle “Ice-Aroma.” I had to see what all the excitement was about.” After doing extensive research, Niran decided to bring the Israeli concept of blended coffee to the United States. However, he needed a partner. So, he took the idea a step forward and flew in to Israel to meet his old high school buddy, Nir Sheinbein.
After having a lengthy discussion, Cream&Honey co-founder, Nir Sheinbein, was inspired to take a leap of faith and join forces with Niran to launch Froffee. Nir describes how Froffee “was one of those unique opportunities in life. It probably wasn’t as glamorous as we hoped our next life-project would be, but from a business perspective, it was almost too good to be true. We knew we had the right idea; it was just a question of creating a large enough business infrastructure that would support quick growth! After Niran’s visit to Israel, I decided to leave my degree studies in IDC and pursue this entrepreneurial dream… It took us a few months of careful planning but we were on the road of launching a successful business.”
Despite the challenges of entering a huge market dominated by powerhouse companies, such as Starbucks, Nir and Niran successfully found a way to enter the coffee market in 2014. Rather than attempting to advertise to major coffee companies, they decided to target small business chains and privately held restaurants and cafes who were overspending on goods and labor. Cream&Honey’s marketing advantage is that the company easily saves the average restaurant up to 95% of labor costs for every frozen coffee sold. Nir explains how “It was a simple idea. We recognized a huge market for frozen coffees, that was growing fast, but cafés didn’t know how to utilize this growing demand for blended coffees. At the time, the number of manufactures offering drink-mixes for blended coffees was relatively small, and even though café owners were enjoying the fruits of the frozen coffee’s market growth, they were not seizing the entire monetary potential.”
The next step was to design a business model that would work in their advantage. However, rather than starting from scratch, Nir and Niran decided that they would draw from their Israeli culture by replicating the exact business model which was so successful in their home country. Nir recalls how “We understood that the biggest advantage was the use of a slush machine. All that was left was to partner up with the best machine manufacture in the world – which we eventually did.” Like any good entrepreneur, Nir and Niran constantly searched for more opportunities to expand their company. Emboldened by their small successes, the co-founders “decided that we would enter this industry like a storm, offering not only the best machines, but also the best products out there. It definitely wasn’t easy. We had to find a food engineer that would create the perfect compound to use in our machines.”
Eventually, they found out who was manufacturing the original “Ice-Aroma,” which was being sold in Israel by the millions. While Nir and Niran insisted on using the same basic ingredients to make the drink-mixes, they debated on whether or not they should increase the sugar content of the drinks to accommodate Americans’ preference for sweets. To address their concerns, The Company conducted several taste tests. To everyone’s surprise, people were much happier with the original Israeli product compound and preferred that over the American one. Nir exclaims that “It was perfect for us. We didn’t have to spend more time and capital developing the ‘right’ product; we had it in hand all along.”
While Froffee is still a relatively small business, in comparison to say, Starbucks or Peet’s Coffee and Tea, our vision is to increase restaurant value by providing restaurant owners with the best drink mixes available and the most efficient set of tools to decrease their cost of goods.

Leave a Reply

Your email address will not be published. Required fields are marked *