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A
FEATURED ARTICLE FROM
JULY 2005 |
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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.
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.
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.
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.
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.
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QUICK
FROZEN FOODS INTERNATIONAL
is published by EW
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