365 Retail Markets has inked a multi-year partnership with ColdSnap to make on-demand frozen treats available to micro market operators through the 365 network. The companies are targeting workplaces and other unattended retail locations, including hospitals, college campuses, manufacturing facilities and distribution centers.

“Operators on our network are constantly looking for ways to drive more revenue per location and increase client satisfaction, without adding complexity,” said Jeff Dumbrell, chief revenue officer at 365 Retail Markets, in a release. “ColdSnap gives them access to a high demand category that was previously out of reach for unattended retail, and our infrastructure means we can bring it to thousands of locations quickly.”

ColdSnap’s system uses shelf-stable pods that are stored at room temperature and frozen when a customer makes a purchase. The machine can produce ice cream, smoothies, frozen lattes, protein shakes and other frozen products in about two minutes.

Because the product remains inside the pod during preparation, the system does not require cleaning, plumbing or refrigerated storage, according to the companies. That could allow operators to add frozen products at locations without the equipment and cold-chain infrastructure traditionally required for the category.

Matthew Fonte, founder and CEO of ColdSnap, said the system is designed to make frozen products practical in locations that lack freezers or cold-chain logistics.

“For years, locations without freezers or cold-chain logistics simply couldn’t offer high quality frozen treats,” Fonte said. “This partnership puts ColdSnap into thousands of new micro markets, giving operators a high-margin category they’ve never had access to before.”

ColdSnap plans to begin rolling out machines through the 365 Retail Markets network over the course of the agreement.

Why this matters for convenience services operators

• The partnership between 365 Retail Markets and ColdSnap supports efforts to expand micro markets beyond packaged snacks and beverages into products prepared at the point of purchase.
• The format could be particularly relevant for locations seeking more foodservice-style choices, but operators will have to weigh machine economics and product demand by location.