Blending Milkshakes: How Tough Can it Be?

 A new account for Mack, f’REAL!’s mass market blender is an automated piece of commercial equipment that needs to be highly reliable. Essentially a self-serve blender, it is marketed to convenience stores, movie theaters, colleges and universities, hospital cafeterias and other casual dining outlets where the consumer chooses a flavor, drops the pre-portioned cup into the blender, and pushes a button to produce a delicious milkshake, fruit smoothie, or frozen cappuccino in less than 60 seconds.

Simple to operate but complex to build, Mack assembles 273 parts from 74 suppliers into many different types of mechanical and electronic subassemblies, including motors, linear motion, electronics and plumbing. “Getting all those subsystems to work together consistently is the biggest manufacturing challenge,” says Jens Voges, f’REAL!’s vice president of operations & engineering. “In our experience, the only way to overcome that challenge is to combine sophisticated production lines with clever fixtures, foolproof assembly methods, and a very skilled group of dedicated assemblers. Top that off with the cross-functional support that moves the line forward with high quality day-in and day-out, and you’re set.”

Why Mack?
“The honest answer is that Mack matched our criteria really well,” says Voges, who listed quality systems, vertical integration, financial stability, location, cost, culture and size as f’REAL!’s primary considerations when choosing a contract manufacturer.

The f’REAL! blender exists in an incredibly demanding retail environment. The company’s goal is to sell as many blended frozen beverages as possible (similar to the printer/ink cartridge business model), so it is committed to producing a very high quality piece of equipment. “If our blenders aren’t working, our customers aren’t happy and we aren’t selling drinks,” says Voges. “So partnering with an organization with a world-class quality management system in place was critical…we’re definitely benefiting from Mack’s experience with medical devices and the quality systems it needs to support that segment of its business.”

The second criterion is Mack’s vertical integration of production capabilities. “Having sheet metal, plastic injection molding, final assembly and inspection – all in-house – facilitates a much more streamlined supply chain for us,” says Voges.

Another important factor for f’REAL! is financial stability among its suppliers. “I can’t highlight enough how important it is to partner with other companies that are financially stable and have diversified product and service portfolios that allow them to manage varying market cycles. Mack’s financial stability also saves us money because it allows us to make larger purchases and, in some instances, benefit from existing product pricing,” adds Voges.

And then there’s the age-old question – offshore or domestic?The f’REAL! blender is large and heavy (~95 lbs.), so it doesn’t make sense to ship it over long distances. “We’re also an innovation company,” adds Voges, “which means we’re constantly improving the design. We don’t want to be locked into long lead times and purchasing container volumes at a time. We like being local – it certainly helps with communication and visiting on a moment’s notice if there are issues to resolve.”

While cost wasn’t the most important aspect to f’REAL!, they certainly considered it. “We wanted to make sure we picked a CM that was cost-competitive,” says Voges. “Cost obviously impacts our ability to sell our blender at a good price and, thereby, reduce the barrier for customers to enter our program.” The retail list price for getting started in the f’REAL! program, which includes a blender and a freezer, is just under $8,000. The return-on-investment for a high-volume retailer is typically 18-24 months, according to f’REAL!, but some locations have reported recouping their initial investment in less than six months.

While corporate culturecan be subtle, f’REAL! underscores its importance as well when choosing a CM. “We see Mack as an extension of our company, so there can’t be an adversarial relationship,” explains Voges. “We need to have solid trust that Mack is handling our intellectual property responsibly, treating our sub-tier suppliers well, and is willing to jump through hoops when issues arise, as they always do in manufacturing.”

Finally, f’REAL emphasizes the importance of size, which can look different depending on the business cycle during which you’re shopping around for a contract manufacturer. If it’s a slow time, entrepreneurial organizations can get a lot of attention, even from the very large and well-established CMs, according to Voges. “The question is whether or not they will provide that kind of bandwidth and attention when their business picks up. So we were trying to find partners we could grow with over the long term and not have to switch off, because there’s so much effort that goes into switching down the road.”

Milkshake, Anyone?
With the summer months upon us, there’s no better time to try a f’REAL! milkshake. Made with real ice cream and dairy-fresh milk, they are available in five flavors, including chocolate, vanilla, strawberry, cookies ‘n cream or chocolate malt. For those who prefer fruit smoothies, you can get a full serving of fruit in strawberry, wildberry or tropical burst flavors. And for the coffee lovers, you can enjoy premium brewed gourmet coffee in classic coffee, mocha or caramel frozen cappuccino.

f’REAL! products are now available in over 4,000 retail locations in 47 states across the U.S. To satisfy your cravings, go to www.freal.com/find/ for the f’REAL! product nearest you. Enjoy!

Contact: Vladan Jankovic, Mack Program Manager
vladan.jankovic@mack.com