From Our Print Edition

Ice cream and frozen novelties post double-digit gains during ‘extended’ summer season. But new innovation will help keep the momentum going long after the kids go back to school.

---

While the segment is no longer registering the 40%+ gains it saw in March and April, ice cream and novelties continue to enjoy strong growth as consumers opt for dessert at home rather than risking a trip to a scoop shop or restaurant. Ice cream sales jumped 15.0% (versus the same period a year ago) to $1.68 billion while novelties climbed 17.9% to $1.61 billion during the 12 weeks ended Aug. 9, reports Chicago-based market research firm IRI (iriworldwide.com).

Barring production problems, gains were fairly widespread. But since ice cream is often used as a comfort food – and consumers were all about comfort early in the pandemic – more indulgent, superpremium brands benefited the most, says George Denman, vp of sales at Cincinnati-based Graeter’s (graeters.com). Of course, most superpremiums come in pints, which have been grabbing share points (and freezer space) from traditional half-gallons for several years. “But with kids at home instead of in school, moms stocked up on 48-ounce containers, whose sales prior to the pandemic were anemic at best,” says Denman. He’s not sure if the resurgence will outlast the coronavirus, but in the short term, brands like Breyer’s, Edy’s, Friendly’s and Turkey Hill all profited from the shift.

SUPERPREMIUM INNOVATION ABOUNDS

Although some manufacturers have put new product development on the back burner in order to focus on top sellers, many smaller brands in particular are forging ahead with new items. In a category that’s all about indulgence and fun, “People want innovation,” says Sal Pesce, president and CEO of Woodbury, N.Y.-based Serendipity Brands (serendipitybrands.com), whose superpremium pints take their inspiration from the iconic Manhattan eatery of the same name. Although most Serendipity flavors are based on the restaurant’s over-the-top desserts, the newest addition, Cookies & Cream Remix, was created in collaboration with singer Selena Gomez. Thanks in part to her 190 million social media followers, “We think it has the potential to become one of the best-selling pints in the U.S.,” says Pesce. The company also plans future collaborations with the celebrity on several limited edition flavors. But that’s just the beginning of its strategy for tapping pop culture.

“We recently signed a deal with Warner Brothers to develop several new flavors inspired by some of its most popular titles,” reports Pesce, who says retailers love the idea. First out of the gate in early 2020 will be Central Perk Coffee Almond Fudge, named after the coffee shop featured in the long-running series Friends. After that, says Pesce, Serendipity plans a series of limited edition pints all sold under the same UPC code. For example, in conjunction with the 35th anniversary of The Goonies next March, it will roll out Chunk & Sloth’s Rocky Road, and to mark the 40th anniversary of Caddy-shack, it will offer a Gopher Tracks flavor next July. But the variety that’s expected to garner the most attention is a recurring holiday offering: A Christmas Story Oh Fudge!

Serendipity isn’t the only company hoping to create some buzz with limited editions. “Seasonal flavors bring excitement to the ice cream aisle… as well as incremental sales during traditionally slower periods, which retailers appreciate,” explains Michael Shoretz, CEO of New York-based Beyond Better Foods, maker of the Enlightened brand (eatenlightened.com). The company just started shipping what it believes are the first low-carb, keto- friendly seasonal ice cream offerings: Pumpkin Cheesecake and Peppermint Brownie. Other companies rolling out holiday flavors this fall include Halo Top (Gingerbread House pints), Yasso (Pumpkin Cheesecake, Sugar Cookie and Peppermint Crunch Greek yogurt bars) and Alden’s Organic (Peppermint Twist and Pumpkin Cheesecake ‘sqrounds’).

‘DECONSTRUCTED DESSERT’ FLAVORS HEAT UP

Another hot trend in the ice cream category is what Denman refers to as “deconstruction” – creating a flavor that features the components of popular drinks and desserts like tiramisu, red velvet cake or everyone’s new favorite birthday cake. Graeter’s launched its version in July to celebrate the company’s 150th anniversary and it quickly became the brand’s second-best selling flavor that month at both Kroger and Giant Eagle. The flavor is even more popular at Serendipity where it now owns the top spot (A sprinkle-studded birthday cake spin-off, Unicorn Sundae, recently cracked the top five, adds Pesce).

But birthday cake isn’t the only deconstructed dessert variety on manufacturers’ radar. LeMars, Iowa-based Wells Enterprises created a whole line of cheesecake- based pints under The Cheesecake Factory at Home label (thecheesecakefactoryathome.com) – including a birthday cake flavor. And Denman says Graeter’s is considering a Caramel Macchiato variety inspired by the “extremely on-trend drink” offered by Starbucks, Dunkin and McDonald’s. Meanwhile, Brenham, Texas-based Blue Bell Creameries (bluebell.com), recently launched a Fudge Brownie Decadence flavor that features French ice cream, brownies, whipped topping and chocolate flakes, reports marketing brand manager Sara Schramm. It also relaunched for a limited time fan-favorite Ice Cream Cone, which includes dark chocolate-coated cone pieces, chopped roasted peanuts and a rich chocolate sundae swirl sauce.

Flavors like Ice Cream Cone highlight another increasingly important attribute: texture. “Ice cream with crunch is in,” says Denman, citing the growth of brands like Talenti Layers (which added its first dairy-free pints earlier this year). He also notes the continued popularity of alcohol-and spirits-based flavors from brands like Häagen-Dazs. Graeter’s jumped on the trend this past spring when it debuted a Brown Butter Bourbon Pecan variety, “which has been a big success.” Also hot: breakfast- and cereal-based flavors like Nestlé’s Lucky Charms and Cinnamon Toast Crunch pints and Unilever’s Good Humor Brown Sugar Pop Tart Bars and Klondike Donuts. The Unilever novelties in particular point to another popular strategy among manufacturers recently: mashups.

CREATION OF A HYBRID FROZEN TREAT

J&J Snack Foods Corp. (jjsnack.com), Bellmawr, N.J., created its own hybrid frozen treat recently by combining two of its most iconic, top-selling ICEE flavors and swirling them with vanilla ice cream. “There are a lot of novelty ices and novelty ice creams, but our team identified an opportunity to combine the two into a single eating experience,” says associate marketing manage Lauren Castaldi. “We found very few products in that market that offer both, especially swirled to perfection in an on-the-go tube format,” she adds. Gluten- and fat-free with no high fructose corn syrup, ICEE Frozen Ice Cream Floats come in two flavors: Red Cherry & Vanilla and Blue Raspberry & Vanilla. “Each bite rings in a delicious slice of your childhood and elicits nostalgia in the best way,” says Castaldi.

Traditional with a twist is also part of the 2021 plan at Richmond, Utah-based Casper’s Ice Cream (caspersicecream.com) where classic ice cream sandwiches are getting a modern makeover. Under its FatBoy brand, whose sales were up 62% during the four weeks ended Sept. 5, the company will launch a Sugar Cookie Sandwich and an Old Fashioned Vanilla Sandwich (double-rich vanilla ice cream between blonde wafers).

Casper’s will also relaunch its new boutique-style Churn- Baby lineup, which was overshadowed by the COVID-19 crisis, reports national account manager Steve Crane. Its innovative cookie cups come in Vanilla Fudge Brownie, Peanut Butta Luvva, Cookie Dough and White Mint Chip flavors, each with a whole cookie inside.

The ChurnBaby line also includes a pair of indulgent sandwiches featuring premium cookie instead of wafers: shortbread with cashew caramel ice cream and double fudge with cookies and cream ice cream and a ribbon of sea salt caramel.

While super-indulgent novelties continue to sell very well, manufacturers see gaps to be filled at the other end of the spectrum as well. “In 2021, we will be focused heavily on novelties as we see opportunity for… certified organic, certified gluten-free and certified vegan options,” says Alden’s Organic president and CEO Eric Eddings.

Thanks to the popularity of the keto diet in particular, the reduced sugar segment offers a lot of possibilities as well. “There are a lot of options in the fruit bar category, but they can contain as much as 22 grams of sugar per bar,” says Beyond Better Foods’ Shoretz of the company’s decision to create a lower-sugar offering. But its new Enlightened Fruit Infusions go a step further by also incorporating adaptogens like turmeric, aloe vera and hibiscus known to promote positive health. Currently available at Whole Foods, the line is expected to roll out more broadly next year.

Another new functional frozen treat comes from Los Angeles-based Dream Pops (dreampops.com), whose 100% plant-based frozen treats are infused with superfoods like baobab and adaptogens like Lion’s Mane. Sweetened with less than 2 grams of coconut sugar and free of dairy, gluten and soy, the vegan pops are made using a proprietary manufacturing process that creates a dairy-like consistency.

Halo Top (halotop.com), part of the Wells Enterprises portfolio, is also looking to make its plant-based lineup more dairy-like, reports senior brand manager Shilpa Gadhok. “We rolled out a new formula for all seven dairy-free flavors, replacing brown rice protein with fava bean protein. The change allows for a creamier taste and smoother texture, which are incredibly important for those who love traditional ice cream but may not be able to enjoy it due to allergies or sensitivities.”

But for many consumers, even the best dairy-free products are a poor substitute for the rich, creamy flavor of real dairy. In fact, “Seventy percent of people who shop plant-based frozen desserts never come back,” reports Paul Kollesoff, general manager and co-founder of The Urgent Co. (theurgentcompany.com), Los Angeles. “The taste experience of current products just doesn’t cut it.” As a result, he says, only about 3% of total ice cream sales today are plant-based (despite the amount of space given to the segment) versus 14% of milk sales.

ANIMAL-FREE DAIRY A STEP UP

To close the “animal-free dairy gap,” the company uses a non-animal whey protein to create the category’s first animal-free real ice cream “[which is] as delicious and enjoyable as anything in the dairy ice cream aisle but with much less impact on the climate,” says Kollesoff. Offered under the Brave Robot brand, the lactose-free, vegan pints come in eight flavors: A Lot of Chocolate, Hazelnut Chocolate Chunk, Vanilla, Vanilla ‘N Cookies, Raspberry White Truffle, Buttery Pecan, Blueberry Pie and PB ‘N Fudge.

Lafayette, Calif.-based Boardwalk Frozen Treats (boardwalkfrozentreasts.com) is also using a new type of dairy to create a new type of ice cream. The company recently partnered with the makers of fairlife ultra-filtered milk – one of the fastest-growing milk brands in America – to create a line of lactose-free light ice cream that’s higher in protein and lower in calories, fat and sugar than traditional ice cream, reports Boardwalk CEO Dave Owens. The initial seven-flavor fairlife (fairlife.com) collection rolled out in July, but the company plans to add two more flavors in 2021: Cookie Dough and Butter Pecan.

Boardwalk will also expand its Baskin-Robbins (baskinrobbinsathome.com) pints lineup next year, says Owens. New additions include Orange Sherbet, kid-friendly Pink Bubblegum and Watermelon Splash Ice, a fun non-dairy dessert featuring chocolate “seeds.

Owens urges retailers to make space for innovative new challenger brands that tend to bring excitement to the category. Category leaders are often over-spaced, he continues, and the COVID crisis led some retailers to truncate their resets. In some cases, “That allowed out-of-date ice cream offerings to linger on store shelves longer than they should have,” he reports.

While pulling back on unique new items may have been appropriate during the short term as retailers and manufacturers focused on keeping top sellers in stock, adds Crane, it would be a mistake to eschew innovation for too long. “Even in a pandemic, the consumer is always looking for new and exciting,” he says.

That’s one reason Serendipity’s Pesce says retailers should consider more frequent reviews. “Many of them have a very short window to bring in new products, so when something explodes like Halo Top did, they miss the opportunity.” Instead of annual reviews, he suggests “mini refreshes” every four to six months. “Retailers that revisit the category more frequently are definitely growing sales faster,” he adds.

ICE CREAM & FROZEN NOVELTIES

Sales in supermarkets, drugstores, mass merchants, military commissaries and select club and dollar stores combined for the 12 weeks ended Aug. 9, according to Chicago-based market research firm IRI (iriworldwide.com). Percent change is versus the same period a year ago. Only brands with at least $5 million in sales during the period are listed.

---

[dflip id=”11286″ type=”thumb” ][/dflip]

---