Schoep's makes an average of 9 million gallon-dozens of ice cream and novelties a year from its Madison, Wis., facilities.

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Despite offers from many big-name ice cream companies, Madison, Wis.-based Schoep’s Ice Cream vows to remain family owned. “There aren’t many of us left,” notes Al Thomsen, national accounts manager, secretary and treasurer for the 80-year-old firm.

“We feel it’s important to really hold it all together,” he adds. “There [have] been a lot of challenging years with major mergers out of the marketplace, but for us, this is a living and a life. We’re proud of who we are and what we do, and being a family business is the only way to stand behind that.”

Serving its regional and private label customers since 1928, Schoep’s history dates back to founder E.J. Schoephoester making ice cream in the back of his Madison grocery store. P.B. Thomsen, a butter maker in Windsor, Wis., bought out Schoephoester’s business 12 years later and began wholesaling ice cream in two-and-a-half gallon containers.

Today, Schoep’s makes an average of 9 million gallon-dozens of ice cream and novelties a year. It produces more than 450 different items, which range from three-gallon tubs to four-ounce foam cups, bulk novelties and soft-serve tubes.

One of the company’s keys to its longevity, Al Thomsen says, is staying true to itself. “We don’t try and do things that we’re not good at,” he states. “We receive a lot of suggestions [from customers], but if it doesn’t fit into our scheme, we steer clear of it.”

Understanding its Market
Schoep’s forte is in producing quality ice cream for its customers, Thomsen stresses. “Our expertise is in finding what our customers’ needs are and turning those needs into quality products,” he states. “We’re not here to produce volumes of stuff; we want to produce controlled-quality products.”

For example, for 10 years now, Schoep’s has been serving the healthcare market with its nutraceutical ice cream product line. “It’s something we do really well in,” Thomsen says. “We started working with some of the largest drug companies [when] they were looking for products that are utilized for hospital stays, particularly for people who can’t swallow properly.”

Thomsen adds that Schoep’s nutraceutical products contain additives that make swallowing easier, as well as help provide important nutrients to patients. “We understand and are willing to do things to work with people who are looking for these kinds of specialty products,” he continues.

Quality First
A popular product is Home Pak, Schoep’s original flagship brand. It has been around since the company’s inception, and is made from family recipes. “Back then, people utilized their local grocery stores to get ice cream, because they didn’t have the capacity or freezer to keep it,” Thomsen recalls. “The idea was for people to take their ice cream and take it home [with them].”

From its original flavors of traditional vanilla and chocolate, the Home Pak line now carries unique flavors, such as Homemade Vanilla, Malted Milk, Blueberry Cream Pie, and Black Raspberry Truffle.

In addition, the company carries Gilles Frozen Custard and Sherbet, a product line that originated in Milwaukee back in 1938.

Continued Local Support
Because Wisconsin is home to both regional and national ice cream brands, Thomsen says, Schoep’s is constantly faced with market challenges. “In our state, there are so many brands, so it is difficult to maintain [a name], especially when national chains are downsizing their products and increasing advertising.” 

Additionally, with all the market challenges, Thomsen says, not everyone realizes that even the ice cream industry is affected with issues such as oil prices. “The cost of fuel [affects] the cost to ship products out of our facility and the cost to receive products in,” he says. “As recent as four months ago, we started seeing fuel surcharges at the bottom of some invoices from our suppliers. Rather than increase the price of their products, they had to [charge us for] fuel prices.”

Fuel surcharges go as high as 65 cents per mile, Thomsen continues. “That’s significant, especially when trucks travel a couple of thousand miles [for deliveries],” he says.

The ethanol boom has also affected the industry. “Ethanol has caused a lot of issues to affect our line of work,” Thomsen says. “The cost of feed has increased; it costs more to feed cows and that affects the rest of the supply chain “Not everyone thinks of something as simple [as feeding the cow], but it has a dramatic effect.”

Schoep’s uses its long-term relationships to thrive in the market. “We hold our edge to retailers,” Thomsen says. “We’re a local brand and we have quality products. [Consumers] still support local and regional brands like ours because of our long-standing relationships.”