State regains foothold in ice cream market

Frozen ice cream bars rolled out by Pyongyang-based trading companies are reaching more domestic consumers eager to beat the relentless summer heat in North Korea. For the new monied classs known as the “donju,” however,  the trend is unwelcome, encroaching on a slice of the market they once dominated.

Factory cadres armed with state-trading permits are utilizing imported technology and facilities to produce these frozen desserts, which are called “Eskimo,” according to a source in South Pyongan Province. “‘Eskimo’ produced by food factories in Pyongyang began cropping up at stalls in and outside of the market and at intersections. Cottage industries manufacturing kka-kka-oh [popsicles], ice cream, and ice have taken a hit because people see them as inferior to ‘Eskimo,'” she said.
Additional sources in South Pyongan Province and the capital corroborated this news.

Previously, ‘Eskimo’ varieties–strawberry, vanilla, chocolate, and watermelon, to name a few– produced by Pyongyang trading companies were limited to shops and markets within the capital city, with only a few small shipments disbursed to provincial regions. Now, thanks to partnerships with Pyongsong [in South Pyongan Province] donju, who head up distribution, trading companies are able to ferry truckloads of ‘Eskimo’ further afield.

“In the name of securing Party funds, food producers in Pyongyang are receiving special benefits from Kim Jong Un in order to manufacture products able to rival foreign equivalents,” the source explained. Unfortunately, these production facilities, dozens of which are scattered around the capital, and the are beyond the reach of the donju– a situation the source likened to a “glass ceiling” for this rising entrepreneriual demographic. 

Wrapped in decorative packing and proper wooden sticks, the state-manufactured “Eskimo” brand upstages homemade ice cream, typically produced by donju with equipment purchased from China and ingredients from local markets. The same can be said for the humbler kka-kka-oh, most often the domain of individual, small-scale merchants. State-run enterprises rent out freezer facilities where these purveyors store their products.

“The Pyongsong Market donju who purchase ‘Eskimo’ from trading companies in Pyongyang then sell the desserts in bulk to other donju in different regions,” the source said. “One bar costs 1,000 KPW [0.12 USD], so it is more expensive than kka-kka-oh [500 KPW; 0.06 USD], but soaring temperatures do wonders for demand.”

At the markets, individual vendors use freezers hooked up to motorcycle batteries or generators to keep the treats frozen during a long day of selling outdoors under the sun. Nevertheless, she warned, “while the overall scene may appear as though the market is vibrant and regular folks are earning a lot of money, in reality, they’re only pulling in a fraction of what factory officials do because of this monopoly.”