When Ishpal and Serina Bajaj approached a mall in Kuala Lumpur, Malaysia to open a vegan ice cream shop, they were met with disapproval.
“They pretty much laughed like no one eats plant-based ice cream,” Ishpal said.
“I think the whole perception was that plant-based (desserts) were sorbets and fruit-based.”
But the couple managed to whip up an ice cream that was not only vegan, but “tasted just as good as any other ice cream,” Serina said.
We had people come and tell us that they had never had ice cream because there was dairy.
Serena Bajaj
Co-Founder, Child Kones
When they finally found a space at another mall, Ishpal and Serina knew they were on the right track.
“The support was tremendous… we were making about $8,500 to $10,000 a month,” Ishpal said.
Now Kind Kones’ co-founders say they’re making “20 times more” with four stores in Malaysia and Singapore.
CNBC Make It learns how the duo, who are in their 30s, turned a pet project into a million-dollar business.
Your “first mover advantage”
When Serina had her first child in 2017, she developed an intolerance to dairy products, which led her to experiment with vegan ice cream at home.
The biggest challenge? Find out how to create a plant-based dessert without compromising on taste.
Serina said: “Coconut is a big ingredient for us. But how can we mask that coconut flavor so it tastes as neutral as possible?”
“It was a challenge back then, mostly trial and error. But now we know how,” she added shyly, without revealing the secret recipe.
Although Ishpal and Serina knew their ice cream tasted good, they were worried about whether a vegan dessert would appeal to the general public.
“Back then, veganism wasn’t really a thing in Malaysia… you’d get the odd glass of ice cream in the supermarket that might have been soy-based,” Serina explained.
“And veganism was associated with boring, grassy food… We had the idea to launch Kind Kones and turn it into a small business.”
For Ishpal and Serina – who had no experience in the food industry – investing over $140,000 in Kind Kones in its first year was a “gamble.”
But they quickly realized that they had a first-mover advantage with plant-based ice cream made from purely natural ingredients.
The idea was that if there was mainstream ice cream and us, there shouldn’t be any difference. It should be mainstream enough.
Serena Bajaj
Co-Founder, Child Kones
“We’ve had people come and tell us they’ve never had ice cream because of dairy,” Serina said.
They also realized that their dessert appealed not only to people with a plant-based lifestyle, but also to people with skin conditions like eczema and other allergies.
“Kids are a huge market for us…Parents have been getting their kids to eat our ice cream because it’s also allergy friendly,” she said.
They stick to their guns
Before starting her own business, Serina grew up in the fashion world of Thailand thanks to her family retail business.
Her business background may have been an advantage, but she also recognized that the food and beverage industry is “brutal.”
“When you go shopping, you are in a very good mood. But when you’re hungry… you have the expectation that when you pay for something, it has to be perfect,” she explained.
While the couple have developed ice cream recipes that taste just as “indulgent” as non-vegan options, their products don’t appeal to everyone’s palate, Serina added.
“There are certain flavors that will never be like traditional ice cream… for example, for our strawberry ice cream we use real strawberries and sweeten it with bananas,” she explained.
“It takes time to get used to it. But I think that’s what we’re about – trying to provide real flavor.”
Another common complaint? The price. The couple admitted that their ice cream was more expensive compared to other brands.
“We have a markup… the ingredients are expensive. We make everything ourselves, for example our nut milk is not bought in the store,” said Serina.
According to Ishpal, in response to inflation and rising food prices, one must also respond to the “obvious and increased prices”.
“But we introduced a junior scoop … so you have an option (and) it’s not too heavy on the wallet.”
You definitely have to develop a thick skin and know that you can’t please everyone. You have to stick with what you’re good at.
Serena Bajaj
Co-Founder, Child Kones
Still, the couple has always chosen to remain faithful in the face of challenges.
“You definitely have to develop a thick skin and know that you can’t please everyone. You have to stick with what you’re good at,” Serina said.
That approach appeared to pay off, with Kind Kones doubling its revenue from 2020 to 2021, Ishpal said.
“This year we are on track to double sales again.”
Expansion plans
With fresh funding in hand, Kind Kones has set out to bring its frozen treats to supermarket shelves in Malaysia and Singapore.
“It will also be much more accessible to people,” Ishpal said.
The future seems bright for the couple, who are looking to expand into other countries in Southeast Asia such as Thailand and Indonesia.
There is a growing demand for plant-based products across Asia, according to a 2021 joint report from PwC, Rabobank and Temasek.