Iceberg bets on organic sourcing and clean labels to build a Rs 100-cr ice cream brand

The Indian premium ice cream market is shifting from indulgence to wellness and functional nutrition, sparking a debate on whether future growth will stem from reduced calories or improved ingredient quality. Dr Suhas B. Shetty, Founder & CEO of Iceberg Organic Ice Creams, feels that customers are looking more closely at labels, sourcing, and transparency. This offers a chance for clean-label and certified organic items to establish a unique market position.

During an interview with The Economic Times Digital, Shetty reveals his thoughts on trust's equal footing with taste, Iceberg's approach to market competition, the difficulties in scaling an organic-focused enterprise, and the company's strategy for building a Rs 100-crore premium dessert brand through methodical expansion and fostering lasting customer relationships. Edited excerpts.

The Economic Times (ET): Over the past few years, premium ice cream has moved from being purely indulgent to low-calorie, high-protein and functional products. You argue that the next phase of growth will be driven by ingredient quality rather than calorie counts. What is changing in consumer behaviour that gives you this conviction?
Suhas B. Shetty (SS): The first wave of better-for-you desserts was driven by nutritional claims such as low-calorie, high-protein, and sugar-free. Today, consumers are asking a more fundamental question: What exactly is in my food? They are reading ingredient labels more carefully, avoiding artificial additives and refined sugars, and seeking products made with ingredients they recognise and trust.


This reflects a broader shift from simply counting calories to evaluating ingredient quality and transparency. We recognised this change early and built Iceberg around certified organic ingredients, clean-label formulations, and complete transparency. We believe the next phase of premium ice cream will be defined not by what brands remove from a product, but by the quality of what they put into it. Taste will always matter, but trust is increasingly becoming an equally important purchase driver.

ET: Iceberg positions itself as India's first organic ice cream brand. In a market where terms like "natural", "healthy" and "premium" are used liberally, how do you differentiate your brand, and how important is consumer education in building this category?
SS: Consumers today are becoming more discerning and are looking beyond marketing terminology. Our differentiation lies in offering genuine ingredient transparency backed by certified organic sourcing, clean-label formulations, and responsible manufacturing practices. We focus on explaining exactly what goes into our products instead of relying on broad claims like "natural" or "healthy."

Consumer education is equally important because organic remains an evolving category in India. Many consumers understand the concept but are still learning what meaningful certification, sourcing, and ingredient quality actually represent. We see education as a long-term investment in the category. The more informed consumers become, the more they value authenticity over marketing claims, creating stronger trust and loyalty over time.

ET: The premium ice cream market is becoming increasingly competitive, with legacy brands, global players, and well-funded startups all vying for the same consumer. How do you carve out a sustainable competitive advantage, and what prevents larger players from replicating your model?
SS: Competition is a positive sign because it reflects the growing maturity of the premium dessert category. However, sustainable advantage is built through long-term capabilities rather than product launches alone.

Over the years, we have invested in building an ecosystem that includes farmer relationships, certified organic sourcing, clean-label product development, and transparent manufacturing practices. These capabilities require time, consistency, and deep operational commitment. While larger companies can introduce similar products, replicating trusted sourcing networks, formulation expertise, and the credibility built with consumers is significantly more challenging. We believe our competitive advantage comes from authenticity, disciplined execution, and staying true to our long-term vision rather than reacting to short-term market trends.

ET: Building a business around organic ingredients comes with its own sourcing, supply chain, and cost challenges. How do you balance product quality with profitability, and can an organic-first model scale efficiently across India?
SS: Building an organic-first business certainly requires greater investment in sourcing, quality control, and supply-chain management. We have always viewed these as long-term investments rather than additional costs. By working closely with our sourcing partners and strengthening relationships across the value chain, we have built greater consistency in both quality and supply.

As the business scales, procurement efficiencies, improved production planning, and stronger distribution help offset many of these challenges without compromising product quality. We firmly believe that an organic-first model can scale successfully in India, provided businesses remain committed to quality, invest in robust supply chains, and avoid compromising standards for short-term profitability.

As we continue to grow, economies of scale will naturally improve procurement and manufacturing efficiencies. So yes, I absolutely believe an organic-first model can scale in India.

The opportunity is definitely there. The key is to remain patient. You can't build trust overnight, and you can't build a clean-label business by taking shortcuts. If you stay committed to the philosophy, the business will eventually catch up.

ET: You have set a target of reaching Rs 100 crore in revenue. What is your roadmap for achieving this milestone, and what will be the biggest drivers of growth over the next few years?
SS: Our roadmap is centered on building a strong and sustainable premium food brand rather than pursuing growth at any cost. We will continue expanding Organic Creamery by Iceberg across key markets while strengthening our presence through modern trade, quick commerce, and digital channels to improve accessibility.

Product innovation will remain a key growth driver as consumer demand continues to evolve towards clean-label, organic, and premium desserts. Alongside expansion, we are investing significantly in consumer awareness and brand building because long-term growth is driven by repeat consumer trust rather than onetime product trials. Our ambition extends beyond achieving Rs 100 crore in revenue. We aim to build India's most trusted clean-label dessert brand.

ET: Could you walk us through the business as it stands today in terms of your current revenues, geographic presence, expansion plans over the next few years, and how you intend to fund this growth? Will the journey to Rs 100 crore be driven through internal accruals, external capital, or a combination of both?
SS: Today, Iceberg operates through its manufacturing facility in Nellore, a growing retail presence, and Organic Creamery by Iceberg outlets across multiple cities. Over the next few years, our focus will be on expanding across key Tier 1 markets while strengthening our distribution through modern trade, quick commerce, and strategic retail partnerships.

We have built the business with a disciplined, bootstrapped approach that prioritises sustainable growth and operational efficiency. While internal accruals will continue to support our expansion, we remain open to partnering with strategic investors who share our long-term vision and can contribute meaningfully beyond capital. Our focus will always remain on building a strong and scalable business with healthy unit economics.

The source of capital is less important than the quality of the decisions you make with it. Our aim has never been growth for the sake of growth. We want to build a business that is sustainable for decades.

ET: As consumers become more discerning, do you believe India is ready to pay a premium for transparency, clean labels and organic ingredients, or does price remain the biggest deciding factor in food purchases?
SS: Price will always remain an important consideration, but today's consumers are increasingly evaluating value rather than simply choosing the lowest-priced option. When consumers understand the quality of ingredients, sourcing standards, and the absence of artificial additives, they are far more willing to pay a premium for products they genuinely trust.

We believe clean labels, ingredient transparency, and responsible sourcing are gradually moving from niche differentiators to mainstream expectations, particularly among urban and informed consumers. Over time, transparency will become a basic expectation rather than a premium feature, and brands that consistently deliver on that promise will be best positioned for long-term success.

ET: Looking ahead, how do you see India's premium ice cream market evolving over the next five years, and what role do you want Iceberg to play in shaping the industry's next phase of growth?
SS: Over the next five years, we expect the premium ice cream category to evolve beyond flavour innovation towards greater emphasis on ingredient quality, clean labels, responsible sourcing, and transparency. Consumers will increasingly expect brands to demonstrate not only superior taste but also accountability in how products are made and where ingredients come from.

We want Iceberg to help define that next phase of the category by setting higher benchmarks for clean-label innovation, organic sourcing, and consumer education. Our ambition is not simply to grow alongside the market, but to influence how premium desserts are perceived in India. If our journey encourages greater transparency across the industry and empowers consumers to make more informed food choices, we believe that will be our most meaningful contribution.