Cool Customers: Shoppers flock to the frozen food aisle seeking alternatives to traditional desserts and indulgences.
"We've seen a real comeback in the frozen food aisle," says Julie Henderson, VP of communications for the National Frozen & Refrigerated Foods Association, Harrisburg, Pa.
"We saw growth for the first time in five years during March Frozen Food Month," she says. The frozen food department saw a unit gain of 1.9% for the five weeks ending March 31,2018. And ice cream and novelties are the second and third highest-selling categories in all of frozen. "Both categories have shown sales gains and are long-term growth drivers."
Annual ice cream category sales hit $6.2 billion as of the end of June 2018, up 2.2% from last year, according to Nielsen, which names Unilever, private-label products and Nestle as the biggest ice cream manufacturers.
But while Nielsen finds traditional ice cream remains the category front-runner, nondairy ice cream saw the most growth, up 33% in late June as compared to last year.
Fueled by lactose-intolerant consumers, vegetarians, vegans and those simply looking to reduce their dairy consumption, sales of nondairy ice cream have swelled in recent years.
"Nondairy is not just a fad--it's become a part of the consumer's lifestyle. And it's a growth engine for the ice cream category," says John Henry Siedlecki, senior brand manager for South Burlington, Vt.-based Ben & Jerry's, part of Unilever.
Ben & Jerry's entered the nondairy space several years ago with the aim of delivering greater indulgence. "We saw a real need for products that deliver on taste and texture, with chunks and swirls and unique flavors," Siedlecki says.
With two new recently introduced nondairy flavorsPeanut Butter Half Baked and Cinnamon Bun--Ben & Jerry's continues to elevate the dairy-alternative experience. "When we started with nondairy in 2016, the category was about 1% share of the total category. Now it's grown to over 3% share of the total packaged ice cream category," says Siedlecki, who points out that sales of nondairy ice cream were well over $200 million for the 52 weeks ending September 2018.
"There is a trend toward consumers becoming more interested in plant-centric eating for a variety of reasons, including food sensitivities, environmental or ethical reasons, and general wellness," says Kiersti Bird, associate brand manager for So Delicious Dairy Free, Springfield, Ore.
So Delicious recently expanded its offerings in the frozen, dairy-free dessert category with So Delicious Frozen Mousse. At only 300 to 330 calories per pint, So Delicious Mousse delivers a decidedly creamy and fluffy texture in a variety of flavors.
Whether it refers to free from gluten, growth hormones, artificial colors or dairy, "free-from" offerings in the frozen dessert space are leading innovation and new product trends, according to the Packaged Facts report Ice Cream and Frozen Desserts in the U.S., 9th Edition. "Invariably this avalanche of new, free-from introductions will help the market overcome some of the lukewarm sales growth of recent years," says Rockville, Md.-based Packaged Facts.
When it comes to free-from ice cream and novelties, Phoenix-based Sprouts Farmers Markets is one grocer spoiling shoppers for choice. Offering flavors from Coconut Bliss, So Delicious Dairy Free, Almond Dream dairy-free Frozen Dessert Bites and Three Twins Ice Cream, Sprouts has its finger on the pulse of permissible indulgence.
"Sprouts Farmers Markets has seen great success with our brand this year," says Elizabeth Reilly, digital marketing manager for Coconut Bliss, Eugene, Ore. "As evidenced by an exploding category, consumers are seeking alternatives to traditional ice cream more than ever before."
Coconut Bliss products are all certified organic, vegan and gluten-free, and are Non-GMO Project verified and kosher pareve. The company also uses fair-trade-certified cocoa, coffee and chocolate. It recently introduced two new ice cream bars that are dipped in fair-trade dark chocolate that appeal to the health-conscious and grab-and-go, single-serve-seeking customer.
Just as "free-from" frozen treats are resonating with consumers, so are better-for-you desserts with less sugar.
Ben & Jerry's is on board with the better-for-you trend. Last year, the company launched its Moo-phoria line of light ice cream. "It's the full Ben & Jerry's experience with less sugar and fat, and it's also our first line that uses all organic milk and cream," says Siedlecki.
"There's definitely a trend toward frozen dessert options becoming better for you," says Isabella Monico, brand manager and marketing coordinator for GoodPop, Austin, Texas. "The hottest trends are shifting frozen desserts to dairy-free, gluten-free and containing less sugar than before."
Coined "The Cleaned-Up Classics," GoodPop's three newest products are reminiscent of time-honored ice cream truck treats, but with a better-for-you spin. For example, GoodPop's new Red, White & Blue is dairy-free and gluten-free and contains no added sugar.
As part of the better-for-you trend, individual servings of frozen desserts are also in demand. "I think that more and more, consumers really appreciate having their foods portioned out for them in such a way that prevents them from overeating," Monico says. "Rather than having a pint of ice cream in their hands, and not knowing what one portion is supposed to look like, it's easier to eat an ice cream bar."
Organic Ice Cream Heats Up
According to the Organic Trade Association, Washington, D.C., sales of organic food in the U.S. reached $45.2 billion in 2017, up a record 6.4%. Organic ice cream was a standout category in the organic food landscape, with sales up more than 9%.
"The direction of the marketplace shows that [organic and healthier frozen desserts] are increasingly more important," says Neal Gottlieb, founder of Three Twins Ice Cream, Petaluma, Calif. "The organic market continues to grow at a steady rate, and the scale of the market for healthier frozen desserts, like Slim Twin, has grown exponentially in recent years."
Three Twins launched both Slim Twin--its first offering in the better-for-you organic ice cream category--and Maxine's in the past year. Gottlieb says. Slim Twin has 24 grams of protein and only 240-320 calories in each pint. Also organic, Maxine's gives money back to protect land through Three Twins' land conservation initiative, Ice Cream for Acres.
Ice cream and frozen desserts are also taking a cue from broader culinary trends with exotic and global flavors.
"With certain ice cream companies providing ice creams made with better, fresher ingredients, and with a unique approach, how can there not be an evolution?" says Hannah Bae, founder of Noona's Ice Cream, Brooklyn, N.Y. Featuring flavors such as Golden Sesame and Turmeric Honeycomb, Noona's ice cream is inspired by Bae's Asian-American heritage. It is made using locally sourced hormone- and antibiotic-free milk and cream. The company's latest brand extension is a line of dairy-free ice cream made with coconut milk and inspired by Asian flavors.
Sales increase of nondairy ice cream in June 2018
Source: Nielsen; percent Change from 2017
9% Increase in sales of organic ice cream in 2017 Source: Organic Trade Association
Caption: Ben & Jerry's sees nondairy ice cream as a growth engine.
|Printer friendly Cite/link Email Feedback|
|Title Annotation:||FRIDGE & FROZEN|
|Publication:||Winsight Grocery Business|
|Date:||Jan 1, 2019|
|Previous Article:||Centering In: Retailers can boost CPG aisles by focusing on niche consumer demands and optimizing product assortments to cater to evolving tastes.|
|Next Article:||Winter Thaw: Healthy options are heating up the category of frozen meals.|