F

4 bafrost^—.
________________ ________ 4

bofrost Dienstleistungs
GmbH and Company KG

An der Oelmiihle 6 quoi, his oldest son Michael Boquoi, and his stepson
Straelen, D-47638 Thomas Stoffmehl.
Germany
Telephone: (+49 2834) 707-0 SELLING ICE CREAM DOOR TO
Fax: (+49 2834) 707-117 DOOR
Web site: [Link]
The history of the Bofrost group is closely connected
with the economically prosperous period that followed
Private Company World War II in Germany. Ir began in Issum, a small
Founded: 1966 town northwest of Duisburg in the Lower Rhine region,
Employees: 9,700 (2010) where Josef 11. Boquoi laid the foundation lor the
Sales: EUR 1.2 billion ($1.6 billion) (2009/2010) Company s overwhelming success. After finishing his
NAICS: 454.390 Other Direct Selling Establishments; professional education in commerce and trade in
424420 Packaged Frozen Food Merchant Hamburg in the early 1950s, Boquoi, the son ol a coffee
Wholesalers and grain roaster, worked ar his fathers small shop near
Cologne. In 1957 he took over the business.
In addition, Boquoi began to deliver ice cream door
to door to customers in the surrounding towns, as
reported by Karsten Langner in Manager magazin on
bofrost Dienstleistungs GmbH and Company KG of November 10, 2003. Sometimes Boquoi was paid by his
companies is Europe s hugest home delivery service of customers with food, including fresh produce such as
frozen food. With a fleet of 5,000 cooled trucks, Bofrost beans and peas, instead of cash. Lite vegetables were
delivers a comprehensive range ol deep-frozen food, stored in his cold storage house where they stayed fresh
from plain fruits and vegetables to pastries and ice for a long time. Realizing a market opportunity, Boquoi
cream, and from pizza to premade gourmet meals, started selling them to his clientele as well.
directly to private homes. Roughly two-thirds of Bo-
In 1966 Boquoi decided to start a commercial
frost s total sales are generated in Germany, where the delivery service for ice cream and other frozen food in
company's serves about 2.7 million households. Issum. Togetl ter with three helpers Boquoi began to
I leadquarrered in Straelen in the Lower Rhine region, build his customer base in the rural Lower Rhine region
Bolrost operates 232 subsidiaries in Austria, Switzerland, between the Ruhr and rhe Dutch border. At a time
halv, Spain, Greece, the Netherlands, Belgium, France, when many German households did not own a
Luxembourg, Slovenia, Croatia, and Russia. The Bofrost refrigerator or freezer, the company founder purchased
group is controlled by company founder Josef FL Bo- his first cooled delivery truck in 1969.

44 IN I [Link] ITONAI DIRECTORY OF COMPANY HISTORIES, VO I I M I 123

 bofrost Dienstleistungs GmbH a >i d ( o m /> n iiy i\ (<

Rapid growth continued in the 1980s. Not only did

Bofrost expand its reach to all ol West Germany. I he
C OMPANY P E R S P E C TIV E S company also constantly extended its line ol frozen
specialties. Strictly following the concept of convenience

1 he groundbreaking entrepreneurial idea of out- anti exquisite taste, Bofrost offered a growing range of
prepared meals as well as pastries and desserts. Guido
founder, Josef H. Boquoi, to deliver high-quality foods
Schwanges reported in Rheinische Post Düsseldorf on
which were preserved by being frozen directly to
August 19, 2009, that Bofrost ’s line ol products
households set standards. In four decades it has
included roughly 30 products in the late 1970s, but
become a genuine success story, and today more than
expanded quickly in the following years. By 1987 the
lour million customers all around Europe put their
company was the largest frozen food delivery service in
trust in the Bofrost brand. They value the the country, claiming a market share of roughly SO
incomparable quality of the Bofrost products, the percent.
guaranteed freshness, and the exemplary Bofrost
services. Ehe trust of our customers is for us, a family
owned company, an obligation. It molds the way we
GEOGRAPHIC AND I’RODUC I
1 INE EXPANSION
perceive ourselves and the culture in our company.
Our thoughts and activities are focused on our In 198 Boquoi decided to take his idea across the Gcr-
customers. We set great store by being close to them man border and set up the Companys first foreign

and fulfilling their individual wishes, and this has

subsidiary in Italy. Soon the company ventured into
other Western European countries, including Austria,
always provided the basis for the Bofrost business
Switzerland, liancc, the Netherlands, Belgium, Spain,
strategy. I his tried-and-tested approach forms the
Greece, and 1 uxembotirg. After the opening ol
o tin
bridge between our tradition and today’s international
Berlin Wall in 1989, Bofrost extended us reach to
Bofrost Group.
I astern Germany anil established lour new subsidiaries.
In addition the company expanded to Slovenia, Croatia,
and Russia. While the company s business abroad began

RAPID GROWTH UNDER NEW to grow, Bofrost refined its marketing and intensified the
development ol new products in Germany.
BRAND NAME
l lie company’s marketing strategy was based on
Derived from the company s original name, Boquoi
lliree main communication channels. I he Inst was its
Irost, the brand name Bofrost was created in 197],
giowing fleet ol freezer trucks with colorful and enticing
spelled bofrost' in Europe, with the asterisk representing
displays of Bofrost products. Secondly, the company pm
a snowflake. To communicate his idea, the company
out a catalog twice a year with pictures and detailed
founder put the slogan “freshness and great taste directly
descriptions ol the entire product range. I he catalogs
to your home on his delivery truck. At hist he targeted
also contained special olfers designed to encourage exist
farmers in the Lower Rhine region and later approached
ing customers to recruit new ones. Most importantly,
other private households. Based on the promise ol high-
the truck drivers were also the company' s door-to-door
quality ingredients that were preserved by shock-frosting
sales force.
right after harvest, and the convenience of home
delivery, Boquoi s enterprise took oil right from the s Profiting from the increasing popularity of frozen
tart. food products throughout the 1990s, Bofrost continued
to grow rapidly. However, as consumers tastes became
Only four years alter the foundation ol his business,
more anil more refined, anil as the competition between
Boquoi and his small crew had won .3,000 customers.
the growing number ol players in the market increased.
Three additional subsidiaries were opened in nearby cit-
Bofrost intensified its new product development. I he
ies. including Oberhausen, Kamp-Lintfort, and Kalkar.
company introduced new lines of gourmet meals,
Driven by the rapidly increasing living standards in
including venison, salmon, mussels, and other seafood.
West Germany, the company struggled to keep up with
Another trend that accompanied economii globalization
demand, and moved to Straelen about 20 miles west ol
was ethnic foods, ranging from American pizza lo
Duisburg near the Dutch border. In the next 10 years
Mexican stews and Asian finget food.
the company opened new subsidiaries at a last pace. I he
Company s licet ol refrigerated trucks grew quickly from Bv the late l‘>90s Bofrost offered roughly tiff) dll
one to eight. By the end of the 1970s the number ol lerent products and introduced dozens ol new ptoducts
Bofrost customers hail jumped to 250,000. each year, according to I ibensmithi deitunr on \ugtisi

I \ I I R\ \ I IO\AI 111 R I ( RORY DI < DM I'A N y 11 I S I O R 11 s . voll \1 I I ' I>

bofrost Die nst le ist u ngs GmbH and Company KG

As the drivers paid their monthly visit io to their

customers, they entered the items they sold as well as
KEY DATES customers’ new orders into the device. Without having
to physically look in the truck, (he display instantly
showed the driver when an item was sold out. I his
1966: Josef H. Boquoi starts a door-to-door ice
system made it possible for them to suggest alternative
cream delivery service.
items right at rhe customer’s door. Moreover, with the
1971: 1 he brand name Bofrost is created.
data transferred from each branch to central purchasing
1987: I he company’s first foreign subsidiary is
over the phone lines, the daily sales figures were avail-
established in Italy. able immediately instead of after several days, according
1996: A pioneering information system based on to Rainer Doh in Lebensmittel Zeitung, on January 9,
networked computing is introduced. 1998. Based on the data, rhe central purchasing depart-
2007: Josefs son Michael Boquoi becomes the new ment was able to react much more quickly in placing
head of Bofrost’s management advisory board. new orders with Bofrost suppliers.

CUTTING COSTS AND

21, 1998. In Germany the company had achieved a
IMPROVING SERVICE
market share of roughly rwo-thirds in the door-to-door
delivery of frozen foods, and about one-fifth of the Around the start of rhe new millennium, Bofrost was
whole frozen lood market, as reported by Heidi Duerr the undisputed German marker leader in direct sales of
in Lebensmittel Zeitung, on July 21, 2000. Operating frozen food. However, for the first time in the
from 114 branches, about 3,500 trucks delivered rhe company’s history sales began to slow at first, then
whole Bofrost range to more than three million custom- stagnate, and finally decline, as Andreas Chwallek
ers, generating DEM 1.4 billion annually. Ehe number reported in Lebensmittel Zeitung on April 16, 2004. A
of Bofrost customers in other countries had grown to major reason was the growing competition from
approximately 800,000. traditional food retailers, discount chains in particular.
To ger a larger piece of the thriving market they greatly
expanded their lines of frozen food products and offered
INFORMATION SYS TEM them ar significantly lower prices than Bofrost.
INTRODUCED At the same time, many consumers were no longer
In the 1990s Bofrost began to reorganize irs distribution willing to pay a premium of up to 30 percent for get-
process and introduced a groundbreaking information ting their frozen vegetables, french fries, and pizza
system based on networked computing. As the shock- delivered right to rheir front door. As a result, the
and deep-frosted goods were delivered from producers in company’s share in the frozen food market started to
shrink. According to Anna Baumbach quoting data
32 countries to (he company’s distribution center in
from German consumer research institute GfK in Die
Straelen, they were instantly registered in the company's
accounting system. The goods were monitored as they
Welt on October 16, 2007, home delivery services
passed through quality control until they arrived at their market share declined from 30 percent in 2000 to 23
percent seven years later.
final warehouse destination. Dispatched by Bofrost Di-
enstleistungs GmbH & Co. KG, the subsidiary that To counter the trend, Bofrost worked on cutting
operated the central distribution center, the merchandize costs and on further improving its service. The company
was transported to the more than 100 branches, each of invested in an additional warehouse in Straelen that was
them a separate profit center. more energy-efficient and required less personnel to
operate. As Rheinische Post Düsseldorf reported on May
Every one of the more than 3,000 delivery vehicles
16, 2009, the company was also planning to cut back
had to carry the whole Bofrost product range on each
bonuses as well as the salaries that were an estimated 30
tour. While about 80 percent of a truckload consisted of
to 40 percent above typical pay levels.
customers orders, about 20 percent was reserved for
spontaneous purchases. The daily routes for the 20 or Bofrost also invested in additional training of its
30 drivers per branch were put together with the help of sales force. Drivers were equipped with computers that
the updated system, which used digitalized road maps as helped them provide customers with additional informa-
they became available. 1 very delivery day, drivers picked tion, such as nutritional content. These I o ugh books’
up a mobile data registration device in which the also gave them an order history for each customer,
content of their truckload was stored electronically. reminders about favorite products. (lie most suitable

46 IN I [Link] I I (> N A I DIRECTORY OF COMPANY HIS TORU S, VOLUME 1 2 3

 bofrost 1) ienst leis t u ngs GmbH anti Company KG

special offers, as well as any requested recipes. Bofrost telemarketing subsidiary Bolrost Iclcmarkcl ing (.mbH
also started experimenting with promotional offers, sell- & Co. KG in 2010.
ing additional products such as bottled wine to increase
sales per customer. Finally, the company continued to Evelyn Hauser
launch innovative culinary creations to distinguish itself
from the competition, such as the award-winning ice PRI NCI PAI SI BS1D1ARII S
cream specialties “mini hearts, “ice cream donuts, and
Bolrost |oscf II. Boquoi Deutschland West Gmbl I N
egg liquor ice cream in small, decorative bottles.
Co. KG; Bolrost |osef II. Boquoi Deutschland Ost
GmbH & Co. KG; Bofrost Dienstlcistungs Gmbl I N
Co. KG; Bolrost Dienstlcistungs GmbH \erwaltungsgc-
NEW GENERATION CHAR ES
sellschaft; Bolrost Felemarketing Gmbl 1 N Go. KG; Bo-
FUTURE STRATEGY
frost Nord-Schweiz Vertriebs AG (Switzerland); Bolrost
In 2004 the 70-year-old Bolrost founder retired from Holland ( \ (Netherlands); Bofrost Dienstlcistungs
the Companys active management. As Wolfgang Pott GmbH & Co. KG (Austria); Bolrost Zentrale Belgien
noted in Welt am Sonntag on March 14, 2004, lose! Bo- (Belgium); Bofrost Evon SAS Distribution (Fiance);
quoi had by then transferred major ownership to the BO F ROS I I. A \ \S. A.I . (Greece); Bolrost Italia S.p.a.
newly established Bofrost Stillung, a lamilv trust that he (Italy); Bofrost, S A. (Spain): Bolrost Vertriebs II GmbH

controlled together with his oldest son Michael. Michael & Co. KG (Luxembourg); Bofrost Rus (Russia); Bolrost

had joined the company in the mid-1980s and was S d.o.o. (Slovenia); BOFROST ADRI AUG d.o.o.
(Croatia).
responsible lor the Company s marketing in the 1990s.
In 2007 he became the new head of the Bolrost
management advisory board that oversaw the Companys PRINK IPAI COMI’E I I IORS
management. One year later his stepbrother 1 homas Dr. August Oetker Nahrungsmittel KG; I ismann
Stoffmehl, who was the CI O of Bofrost s sen ice divi I iellsühl-Hei inservice GmbH; I RoS I A AG; iglo
sion tn Straelen, also joined the company's advisory (iinbl I; Nestle S.A.
board and became Bolrost s spokesman.
FUR I HER READING
Io secure the Company s competitiveness tn the
flinke. Rita. " W'ach wechsel ... : Bofrost. I ehcnonittel/citung.
long term, the second family generation worked at
August 20, 2004, 61.
impiemen11ng new strategies to reduce costs and to
Kuhs, Corinna. Bofrost ( h tinder gehol t zu 100 rets listen
increase sales. Custom-built navigation systems were be-
Deutschen. RP Online. October 12. 2010.
ing developed to optimize delivery logistics and thereby
I aligner. Karsten. “W ir haben s vom Behalten. Manager maga
reduce fuel costs. Io better target the convenience-
zin, November 10, 2003.
oriented, 50-plus generation, Bofrost worked on health-
I ot/e. Jörn. “ I iefkiihlimpcrium Bofrost. Rheinische Post I >10
oriented communication concepts. I he Company s seldorf. August 30. 200
newly designed Web site was launched in July 2009 and Mürmann. Christoph, Gerd Flanke, and Andreas < [Link].
offered information and recommendations for diabetics, “W it sind die lags t / chensmatel /tilling. November 2.
vegetarians, and people with allergies. In addition the 2007, $3.
company planned to increase revenues by- selling related Porr, Wölfgang. Ein eiskalter l all furs Gericht. Welt am
h as high-quality
products such wine, cookware, and Sonntag. Marsh I t 2001
microwaves to Bolrost s existing customer base. Schmidt Auerbach, Markus. "Heirndieilste; Wenn der Eismann
zweimal klingelt. Handel. |nlv 3. 2002. 32.
In September 2010 1 homas Stollmehl told Rhein-
Schwartges, Guido. "Bofrost: Aon 30 aut >51) Produkt,. A7 <.
ische Post Düsseldorf that the company’s revenues were nische Pust Düsseldorf. August 19, 2004.
rising again. By then Bolrost sales abroad accounted loi
Schvpck. loachim. “Special Report on Direct Marketing:
more than one-third of total revenues, and the percent- Germans I 1h Eismann ( onieth. .Marketing. Os tober
age was expected to gross' to roughly 50 percent within 1989.
the next decade. To further improve customer service W tr setze n auf Wachstum. Rheinische Pint Ditai/ilnr/.
and increase sales, the company established (he new September 18. 201 0.

I N I I R N \ I ION A I 1> I R I t I 11 R Y ( 11 t < > \l I’ \ \ Y 11 I S I O R I I s Yt'l I Ml I > I