This '90s-Era Frozen Treat Faced Bankruptcy — But Found An Unexpected Second Life

Kids in the '90s may remember the simple joy of scooping into a bowl of tiny frozen beads. The invention of Dippin' Dots altered the cold dessert industry with its small spheres of flash-frozen ice cream. Instead of scooping into bowls of melting ice cream, these ultra-chilled orbs would stick to your tongue before disintegrating into mouthfuls of flavor. Despite the dessert's popularity, business complexities pushed this nostalgic treat to almost become one of those discontinued frozen treats relegated only to memory. 

After a few changes of hands and some smart strategy, the technology to make this treat persevere. The founder of Dippin' Dots, Curt Jones, applied his background in biotechnology to the food industry. In 1988, Jones discovered that dumping ice cream into extremely cold liquid nitrogen resulted in small edible beads. His culinary creation was patented, Jones set out to expand the reach of Dippin' Dots through a franchising model, and Dippin' Dots were served at amusement centers across the country. Jones' business idea proved challenging, however, as distributing storage spaces that were cold enough to hold Dippin' Dots wasn't an easy task. After a lawsuit with a competitor got messy and expensive, Dippin' Dots had to file for Chapter 11 bankruptcy protection in 2011.

In an attempt to restructure the business and keep the initiative running, Dippin' Dots was sold for close to $13 million in 2012. The new business strategy centered on partnerships and licensing. Soon, Dippin' Dots made its way into movie theaters and convenience stores, and the joy of eating frozen ice cream balls was kept intact. In addition to keeping Dippin' Dots alive in new venues, the technology used to make Dippin' Dots was sold to businesses in other industries, like pharmaceutical companies and plant-based food brands.

Although the sales of the frozen ice cream treat ultimately dropped, the unexpected cryogenics vertical skyrocketed and became extremely profitable. Once again, another acquisition took place. Except this time, Dippin' Dots was purchased for $222 million in 2022. The cryogenics methodology has since been sold and applied to different brands in other industries like the company 40 Below Joe packaging coffee in the same way Dippin' Dots was made, in small frozen flavored balls.