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(Photo by Michael Brandt/picture alliance
LONDON -Ice cream companies may be benefiting from a summer sales lift as temperatures soar, but they are also preparing for a future in which consumers want to indulge without as much guilt
The growing use of appetite-suppressing GLP-1 drugs, stronger demand for healthier foods and increased scrutiny of ingredients are prompting manufacturers to rethink their products. Companies are reducing portion sizes, adding more protein and simplifying ingredient lists to appeal to increasingly health-conscious shoppers
U.S. ice cream sales volumes declined 1.5% year-on-year through June 13 Research from Boston Consulting Group also found that people taking GLP-1 drugs reduce their consumption of frozen treats by at least 10%
Still, manufacturers see little evidence that consumers are giving up ice cream entirely. Instead, companies are betting that shoppers will keep treating themselves if products offer fewer calories, more protein and cleaner ingredient lists
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What they’re saying:
“We still want to indulge, but do it with a little bit of a halo of a wellness play,” Lisa Vortsman, U.S. chief marketing and innovation officer at The Magnum Ice Cream Company, told Reuters
Ferrero-owned Blue Bunny, for instance, has reported strong demand for its 150-calorie Mini Swirls. The company is also reformulating products to eliminate ingredients such as high-fructose corn syrup and artificial colours and flavours
“We know that there are certain ingredients that they don’t want to see in their products as much anymore,” said Andrew Mondzelewski, senior director for brand marketing at Blue Bunny
Big picture view:
About 16 million Americans are currently taking GLP-1 medicines and that figure is expected to rise substantially by the end of the decade. Major food companies, including Nestle and Conagra, have responded by reformulating products as shoppers seek more protein, fibre and other nutritional benefits
For ice cream manufacturers, the task is to maintain the category’s reputation as a satisfying treat while responding to consumers who are paying closer attention to nutrition as well as flavour
Ferrero’s Halo Top, which markets itself as providing a comparable ice cream experience with about half the calories of leading competitors, has posted double-digit percentage sales growth over the past two years. That compares with growth of about 2.5% across the broader market, according to Chicago-based market research firm Circana
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Rather than reducing serving sizes, Halo Top said in emailed comments that its strategy is to combine “craveable flavours with a good
“Consumers have stopped giving indulgence a free pass,” said NielsenIQ’s Vice President of Food Thought Leadership Chris Costagli
Dollar sales in the U.S. ice cream market increased about 2.8% over the past year however, showed that super-premium ice cream was the only segment to record growth in sales volume
The shift toward wellness is also extending beyond the United States, forcing brands to consider how they can remain relevant as eating habits change around the world
Glacier, one of Europe’s largest private-label ice cream producers, says it is seeing increased demand for smaller portions, premium offerings and lower-calorie ice lollies that align with consumers’ broader health and wellness priorities
“If you are on GLP-1, if you’re going to have a treat, you want it to be a really brilliant thing,” said Glacier executive director Matt Frost. “The thing that we will be absolutely obsessed about is taste and repeat purchase because there’s no point in nudging customers into better-for-you foods if they feel they’re compromising on taste because they’ll stop.”
Theviews and comments from executives at major ice cream companies, including The Magnum Ice Cream Company, Ferrero-owned Blue Bunny, Halo Top and European producer Glacier. This story was reported from Los Angeles.
HealthFood and Drink
