USA Summer Ice Cream Scene: Novelties, Co-Branding and Something for Everyone

Unilever's
Breyers is leading retail brand, with sales of $529 million in 2004.
No. 2 is Nestle's Dreyer's/Edy's Grand ($442.2 million), followed
by Blue Bell, Haagen-Dazs, Ben & Jerry's.
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| Strawberry
Cheesecake ice cream bars are new to the Haagen-Dazs line. Three
86g servings, each dipped in crunchy graham crust and milk chocolate,
come per box. |
If there is one frozen food category that offers something for almost
everyone, it has to be ice cream. According to Chicago, Illinois-based
Information Resources, Inc. (IRI), retail ice cream and sherbet sales
in the USA, excluding Wal-Mart, reached $4.4 billion during 2004, edging
up 1% over the previous year. Americans love the stuff, consuming about
20 quarts per capita, reports the United States Department of Agriculture
(USDA).
Will indulgence in frozen confectionery continue at such a high level now that consumers are are digesting repetitious warnings about the dangers of obesity and new government dietary recommendations? Meanwhile, there seems to be a waning in low-carbohydrate dieting, a return to low-fat diets, and a definite increase in the cost of milk and ingredients. With all these factors at play, what are shoppers buying?
"All ice cream manufacturers are competing for share of stomach' by continuously
offering something both new and interesting," Darryl Hamilton, director
of marketing for Kerry Sweet Ingredients, told Quick Frozen Foods
International (QFFI). "Manufacturers are trying to appeal to different
consumer segments such as those who have certain diet restrictions
caused by diabetes, and/or obesity issues."
Susan Deeming, Kerry's vice president of technical services, added: "The industry
is trying to determine what kinds of products consumers really want.
Low-carb items fit a specific dietary regimen that is already on the
decline. There is an obvious interest among consumers for more healthy'
products, but that definition is still pretty open.
"Does it mean low fat, no sugar added, or just reduced levels or reduced calories?" she continued. "There are even products with positive nutritional components. Indulgence is not declining, so the ice cream market remains strong."
Indulgence indeed is a strong sales motivator. Discriminating consumers
want super-premium ice cream such as the types of products distributed
under the Haagen-Dazs label, which has generated an 11.9% unit share
increase during the past year, according to IRI.
The brand is manufactured by Dreyer's Grand Ice Cream, Inc., a Nestlé
company headquartered in Oakland, Calif. Its newest offering is Haagen-Dazs
Light, a reduced fat line extension that was rolled out nationwide
in June featuring seven flavors: Vanilla Bean, Dutch Chocolate, Coffee,
Dulce de Leche, Mint Chip, S'mores, and Cherry Fudge Truffle.
Consumers not necessarily in the market for light fare also have
new Haagen-Dazs products to choose from, including five super-premium
flavors: Almond Hazelnut Swirl, Caramel Cone, Triple Chocolate, Vanilla
Bean, and Vanilla Fudge Brownie.
Those wanting a quick treat out of the freezer formulated especially for adult tastes can reach for Strawberry Cheesecake ice cream bars. Distributed in three-packs, each unit features ribbons of strawberry dipped in milk chocolate coating with graham crust pieces.
Retail Ice Cream Product Sales in United States Supermarket Outlets
CarbSmart Ice Cream
In January, light ice cream for folks following low-carbohydrate diet regimens was introduced by Good Humor-Breyers, the US ice cream division of Unilever. Its CarbSmart Light Vanilla Fudge Sundae and Light Chocolate Peanut Butter are extensions to a line that debuted in late 2003. IRI numbers for this range show sales at close to $76 million in 2004.
Although low-carb diets may have peaked, carbohydrate awareness is here to stay, insisted Dan Hammer, vice president of marketing and development for Green Bay, Wisconsin-based Good Humor-Breyers.
"According to our own research," he stated, "66% of carb-conscious consumers are seeking low-fat products. Our CarbSmart products are lower in fat than regular ice cream, yet still of indulgence quality. This makes them an ideal choice for carb-conscious dieters."
Julie Chmielewski, a food and beverage analyst for Find/SVP, agrees that the indulgence trend is strong and growing. She said that while Americans are living in uncertain times domestically with economic restructuring, and internationally as the nation fights a multi-front war against terrorists and insurgents, people are responding by seeking out comfort foods like super-premium ice cream.
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| Cross marketing of Nestlé
and Toll House brands gives Mint Brownie Bars plenty of
name recognition among consumers. |
No matter which diet fad is sweeping the land, Chmielewski commented,
"Americans are not willing to give up ice cream." She went on to say
that the market can expect to see more co-branding of products, as
consumers are willing to extend their product preferences from one
brand to another. This is already apparent in products that feature
Oreo cookies, Snickers and M&M candies, as manufacturers have cashed
in on the blending of ingredients and sales opportunities.
Nestlé recently introduced ice cream bars that feature Toll House chocolate chip cookies sandwiching ice cream enrobed in chocolate. Mint Brownie Bar is the latest item available.
Agreeing with Chmielewski's co-branding assessment, Hamilton of Kerry Sweet Ingredients commented: "In some instances this involves working with a compatible and recognized national brand to develop an ice cream formulation that delivers a taste experience that is related to the national brand's product. In other situations, co-marketing is actually nothing more than featuring a unique ingredient.
"However," added Hamilton, a new trend that is emerging is micro-branding,'
or boutique-branding.' In this instance, the ice cream manufacturer
is not utilizing a national brand, but rather is working with small,
unique, local or regional brands to offer a point of difference versus
others - as well as to try to develop a more personal relationship
and reputation with consumers."
Lynn Bolton, a spokeswoman for Wilbraham, Massachusetts-based Friendly Ice Cream Corporation, said that it has been cross marketing candies and cookies with its retail ice cream sundae cups for years.
"Co-branding provides a recognizable brand like Reese's candies with popular ice cream like Friendly's. The consumer knows exactly what she's getting and sees value with that. Great toppings with ice cream have always been a win-win."
Understanding the consumer can often be an important ingredient in successful marketing and sales, but that takes careful research and planning.
Minneapolis, Minnesota-headquartered Pillsbury has charged into the ice cream field with its Doughboy icon leading the way. Kemps, a dairy company based in the same city, is producing the range.
Prior to introducing the new line, Pillsbury conducted a survey among avowed ice cream lovers. Some of the findings concluded that women are nearly three times more likely than men to console themselves with a bowl of ice cream after a romantic breakup or other emotional disappointment. Furthermore, half of all Americans - whether male or female - confess to bonding with their significant other over ice cream.
Retail Ice Cream Product Sales in the United States Supermarket Outlets
The company hopes to cash in on this comfort food co-branding sales magic. Its range of 56-ounce ice cream containers, which retail from $4.99 to $5.49, includes seven flavors. Among them are Turtle Fudge Brownie, Lovin' Caramel Swirl, Brownies 'N Cream, and Homemade Vanilla.
Expanding the Novelty Market
Frozen novelties used to bring back memories of ice cream trucks ringing their way through neighborhoods and kids running out to meet them. Today, though there is a growing market targeted to children, novelties in the US market are definitely more adult-oriented.
IRI reported that ice cream novelty sales topped $2 billion during the 52-week period that ended on Jan. 23. Though until sales are down for the same period by a little over 1%, this sub-category has lots of room to grow.
Novelties can pair nicely with diet-conscious consumers, particularly among low-carb or low-fat dieters who enjoy portion controlled treats that satisfy their sweet tooth in a guilt-free manner.
CoolBrands International markets 18 brands of ice cream and frozen novelties. Among them is the Atkins line of low-carb treats. New flavors include Fudge and Cream Pops, Vanilla Cones, and Ice Cream Sandwiches. It also makes Carb Solutions chocolate and vanilla sundae cups.
For people looking for something that's both low-fat and low-carb, there's the No Pudge! line produced under license by Eskimo Pie of Ronkonkoma, New York. Marketed as "indulgence without guilt" products, Giant Fudgy Brownie Cones are new to the range. Distributed in four-packs that retail for $3.99, they feature 97% fat-free vanilla-flavored ice cream.
Also offered are Giant Chocolate Eclair Bars, Strawberry Shortcake Bars, and Ice Cream Sandwiches.
"Our ice cream products have the rich, creamy taste you love without all the fat," said Lindsay H. Frucci, founder and president of No Pudge! Foods Inc.
Still Appealing to Kids
No one has forgotten about the children, but moms now wanting a healthier alternative
can reach for CoolBrands' "better for kids" varieties that include
ice pops and low-fat ice cream under popular character licensing names
such as Care Bears.
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| Lindsay
H. Frucci, founder and president of the No Pudge! range, says
that her products "have the rich, creamy taste you love without
all the fat." |
Yabba-Dabba-Do!
Cartoon character Fred Flintstone pushes Nestlé Push-Up Low-fat
Ice Cream Swirls as a "good source of calcium" that tastes good
too. |
Nestle has introduced Push-Up Low-fat Ice Cream Swirls complete with
the popular Fred Flintstone cartoon character featured on packaging.
Instead of bellowing his signature "Yabba-Dabba-Do!" Fred points out
that ice cream is a good source of calcium.
For the mom who may want something for herself that she doesn't mind sharing with the kids, there's newly released Dibs from Dreyer's/Edy's Grand Ice Cream. The bite-sized ice cream snacks come in five flavors, namely: Vanilla with Chocolate and Drumstick coating, Chocolate with Chocolate coating, Mint with Chocolate coating, Vanilla with Chocolate coating, and Vanilla with Chocolate and Crunch coating.
Company spokeswoman Suzanne Saltzman commented: "The fire engine red packaging greets consumers in the frozen snack aisle and features a removable, closeable lid - perfect for grabbing one or two, or a handful."
Multi-serve packs contain 60 pieces and retail for $3.99. Single-serve
packages contain 26 pieces and fit in a car cup holder. The choices
are Nestle Crunch and Vanilla, which sell for $1.75 at convenience
stores.
Pints, Half Gallons and Bars
CoolBrands International and General Mills have paired together under the Yoplait yogurt brand and recently introduced two new items. Yoplait Frozen Breakfast Bars feature low-fat frozen yogurt coated with fortified cereal. Available in strawberry or vanilla, each bar has 120 calories and only 1.5 grams of fat.
There is also a new Frozen Breakfast sandwich that boasts the same low-fat yogurt, plus orange sorbet sandwiched between two fortified cereal wafers. These items can be found either in the frozen breakfast food aisle or the ice cream and dessert freezer case. The company reports strong yearly sales throughout its New England distribution channels.
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| Yoplait
Frozen Breakfast Bars feature low-fat vanilla yogurt enrobed in
cereal. Four units come per 472ml box. The producer is Ronkonkoma,
N.Y.-based CoolBrands, Inc. |
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 |
| Friendly's
Tiramisu Ice Cream Roll is new from Wilbraham, Massachusetts-based
Friendly Ice Cream Corp. The product is billed as "a perfect party
dessert. |
An increasing number of ice cream cakes and rolls have been finding
space in supermarkets. Carvel recently introduced several ice cream
rolls, including a 32-ounce Strawberry Shortcake offering. They are
being featured in retail stores along with its ice cream cakes in
separate freezer cases in the bakery section.
Ice cream rolls are also available from Friendly's in new flavors
including Tiramisu, Party Roll, a kid-targeted Dinosaur Dig Roll,
and a Dutch Fudge Roll. Seasonal items such as Watermelon Roll and
Orange Creme Roll are offered in the summer, and a Spumoni Roll and
Jubilee Roll is distributed during the winter.
Ice cream rolls and cakes are definitely more expensive than half gallons. Bolton told Quick Frozen Foods International that Friendly's particularly markets these items to 25-54-year-old women with children.
"Our ice cream rolls are enjoyed during special occasions ranging from holidays and birthday parties to picnics and formal receptions, rather than everyday occasions," she said.
Downsizing Trend
Shoppers in North America who think that their ice cream favorites are shrinking in size are making a correct observation.
Find/SVP's Chmielewski told Quick Frozen Foods International that increasing costs for milk and ingredients have pinched manufacturers to the point where smaller portion sizes have been brought out to control costs. She added that many consumers may not mind because in some instances, smaller sizes also mean less fat and fewer calories.
Kerry Sweet Ingredients' Hamilton agreed entirely with Chmielewski, and further commented that many ingredients used in "health and wellness" items are now more expensive.
However, this seems to be one more question for marketers and manufacturers
to work out, as they track the sales of their product lines. Companies
which now offer everything from super-premium to low-carb and low-fat
ice creams may soon pare down product lines and feature only best
sellers. While this may mean a loss in variety for the consumer, there
will always be new products finding ways into the market - with and
without candy coating.
Even With a Name Like Smucker's,
It Still Can't Get a US Patent
You can't patent a frozen peanut butter and jelly sandwich.
That's the word from the US Court of Appeals for the Federal
Circuit in a case brought by J.M. Smucker, the company best
known for jams and jellies.
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| "If
it's Smucker's, it's got to be good," ran commercials for
the company's jams, jellies and preserves. Its legal argument
for patenting a frozen peanut butter and jelly sandwich,
however, was not good enough for the US Court of Appeals.
Meanwhile, the court of consumer opinion seems to be more
favorable as the brand franchise has been extended to Uncrustables
Grilled Cheese Sandwiches. |
Smucker's two-ounce Uncrustables peanut butter and jelly pockets,
introduced in 2003, come in two flavors - strawberry and grape
- and are enclosed without a crust using a crimping method that
the Orrville, Ohio-based company says is one of a kind and should
be protected from duplication by Federal law.
Patent examiners at the US Patent and Trademark Office disagreed,
saying the crimped edges are similar to making ravioli or a
pie crust. The company had appealed the initial rejection to
the patent office's Board of Patent Appeals and Interferences,
but that body upheld the decision to reject the patents, so
lawyers went to the appeals court.
Smucker already owns a general patent, which it purchased from
Len Kretchman and David Geske, two Fargo, North Dakota, men
who came up with the idea in 1995 and had been baking the products
for school children. The two cases before the appeals court
involved two additional patents that Smucker was seeking to
expand on an original patent by protecting its method.
Meanwhile, the company's original patent is being re-examined
by the patent office. Smucker asked Albie's Foods, Gaylord,
Michigan, to stop producing ready-made PB&J sandwiches for a
school district, but the food manufacturer went to a federal
judge in 2001 and then asked the patent office to invalidate
Smucker's original patent.
Albie's was "caught off guard, literally, because they didn't
think you could patent a peanut butter and jelly sandwich,"
said the company's lawyer, Kevin Heinl. Brigid Quinn, a spokeswoman
for the patent office, said the Smucker case is one of several
that seek to test the limits of what Federal law has determined
can be protected by patents.
"There's always more than one view on how it can be interpreted,"
Quinn said. "There are intellectual judgments that are crossed
with scientific knowledge, and it's not black and it's not white.
They're judgment calls. Very few patents are what one would
call a ?pioneer patent,' meaning that the inventor discovered
something very, very new that has never been discovered before,"
she said. "Most patents are given to changes to existing technology."
Smucker said that it was disappointed with the decision but
does not anticipate it will affect the company's short- or long-term
financial performance. "We bought a unique idea for making an
everyday item more convenient (and) made a significant investment
in the idea and in developing the innovative manufacturing technology
that makes Uncrustables so easy to use," a spokesman said.
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Henningsen Cold
Storage Opens New PRW To Serve Suburban Seattle Marketplace
In a move to strengthen its position as a third party logistics
provider, Hillsboro, Oregon-based Henningsen Cold Storage Co.
has opened a new public refrigerated warehouse (PRW) in Kent,
Washington, USA, a suburb of Seattle.
Strategically situated near Interstate 5, between Seattle and
Tacoma, the Kent facility offers both frozen and refrigerated
storage space and services for local, regional, national and
international customers. The fully-racked warehouse has 14 truck
doors with a refrigerated loading/unloading dock.
"Our long-standing reputation of excellence, high standards
of service, and provision of quality solutions for our customers
is important in helping set the pace for our growth in the future,"
said Chairman and President Michael E. Henningsen, Jr. "We're
pleased to expand our offerings to the Seattle area marketplace."
The Kent facility measures a million cubic feet. It will be
the eighth location in Henningsen's nationwide network, and
brings the company's total capacity to 37 million cubic feet.
"Our expansion gives us the opportunity to work closer with
some of our current customers and help grow the core aspects
of our business, providing third party logistics, transportation
and temperature controlled warehousing services," said Tony
Lucarelli, executive vice president of sales and marketing.
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Double-Churned Ice
Cream Makes Way into Freezer Case
Unilever has rolled out Breyers Double Churned Light Ice Cream
just in time for the busy summer season. This new generation
of premium products is said to have the regular creamy taste
of ice cream and only half the fat (3.5 to 5 grams per half-cup
serving) and 25% fewer calories at just 130.
The assortment features the following flavors: Creamy Vanilla,
Vanilla Bean, Creamy Chocolate, Vanilla/Chocolate/Strawberry,
Mint Chocolate Chip, Butter Pecan, and Rocky Road. All come
in containers sporting a double-churn icon.
Meanwhile, rival Dreyer's Slow Churned Light Ice Cream line
of super-premium products now numbers over 25 items, including
Cookie 'N Cream, Chocolate Fudge Chunk and Caramel Delight.
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