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Dairy Queen

New Dairy Queen CEO Excited About China

(BRK.A), (BRK.B)

Dairy Queen’s recently appointed President and CEO Troy Bader is excited about the company’s growth in China.

“We added 150 locations in China last year alone,” Bader says.

Dairy Queen has more than 800 locations in China, which is its largest overseas market.

In China, Dairy Queen’s primary emphasis is on its treats business, as compared to its Grill & Chill locations that are popular in the U.S. and Canada.

“We don’t have a particular target number of locations,” Bader says. “We face lots of competition.”

That competition is more of a concern to Bader than the current trade war and tariffs that are playing out between the U.S. and China.

One of the highlights for Dairy Queen in the China market is coming from its emphasis on its beverages, especially its tea beverages.

The company has tailored its products to Chinese tastes, with fruit flavors such as apricot, peach and durian proving popular.

Tea is also used in its frozen desserts, with Ceylon black tea blended in with ice cream as one of its Blizzard menu items.

Locations that carry its light food fare also have specially designed products for Chinese tastes, including the Chinese spicy chicken roll and crispy curry puff.

The closest the company comes to the familiar American hamburger is its German beef sandwich. It also sells three variations on the popular American hot dog.

© 2018 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.