Ice Cream Makers Keep Their Cool

Rising ingredient prices and slow sales are not a great recipe for profitability. But that’s exactly what ice cream processors are dealing with. Cocoa prices have been rising steadily and so have those for guar gum.

Perry’s Ice Cream Co. doesn’t sugarcoat the situation. “Commodity pricing pressure has forced higher retail and higher promotional price points, which has led to lower unit sales,” says a spokeswoman for the Buffalo, N.Y.-based processor.

Then there are the general economic and competitive conditions in the United States that knocked out one processor this summer (Yarnell’s, Searcy, Ark., shut down) and staggered another in October (Friendly’s, Wilbraham, Mass., filed for Chapter 11 protection).

Nevertheless, processors have continued to innovate with flavors, product extensions and marketing programs.

In April, international food giant Unilever rolled out its super-premium Magnum stick novelty to the United States. The treat, made with vanilla bean or chocolate ice cream and enrobed in a thick coating of Belgian chocolate, competes against Mars’ Dove bars.

The Magnum bar retails for a suggested price of $2.59 and a three-count multipack for $3.99 at Walmart, Target, Safeway, Kroger and other retailers. The ice cream bars are available in six flavors: classic (vanilla bean ice cream), almond, double caramel, double chocolate, white (vanilla ice cream with a white chocolate coating) and dark (vanilla bean ice cream dipped in 60% cacao Belgian dark chocolate).

Unilever’s ice cream and novelty portfolio includes Ben & Jerry’s, Breyers, Good Humor, Klondike and Popsicle.

“In 2011, Unilever’s ice cream brand’s innovations are driving growth,” says Mike Hurley, senior brand manager for Magnum Ice Cream, Klondike and Good Humor.

Citing Magnum’s launch and new products from its other brands, Hurley says, “Unilever is contributing great innovations to the industry, and consumers should expect the same in 2012.”

Eight new flavors in Breyers’ Blasts! line use candy and cookie brands, including Oreo and Chips Ahoy (licensed from Kraft Foods) and Mrs. Fields.

The Popsicle brand was built on Unilever’s partnership with the Hershey’s Jolly Rancher brand, entered the market in Blue Raspberry/Cherry and Grape/Green Apple flavors and is sold in 20-count packages. Pops are made with 10% fruit juice and provide 10% of the daily value for vitamin C per serving. One fat-free treat contains 45 calories.

Popsicle also partnered with AirHeads (a taffy-like chewy candy from Perfetti Van Melle Benelux) on a line of fat-free ice pops. The 50-calorie ice pops are sold in 18-pack cartons in strawberry, blue raspberry, watermelon and White Mystery flavors.

Klondike, Unilever’s brand of stickless bars, added a new flavor: mint chocolate chip, featuring light ice cream with chocolaty flakes and a dark chocolate-flavored coating. Klondike’s new What the Fudge? brownie ice cream sandwich is made with an artificially flavored vanilla light ice cream with a chocolate fudge core, sandwiched between a chocolate brownie. Klondike packaged its popular Choco Taco into a four-pack for grocery store sales nationwide. This taco is made with an artificially flavored reduced-fat vanilla ice cream with a chocolate-flavored swirl in a sugar taco with milk chocolate-flavored coating and peanuts.

Another ice cream processor taking flavor cues from the candy industry is Mars. Ellen Thompson, marketing director for Mars Ice Cream, said in 2011 the company focused on its new Dove Peanut Butter Swirl novelty, along with flavor extensions of its branded pints.

“Our key message for Dove was communicating the indulgent combination of real ice cream and silky smooth Dove Chocolate. Our Snickers marketing was focused behind letting consumers know they can have the delicious taste of Snickers bar in ice cream,” Thompson says.

Looking for a competitive edge

Regional and local ice cream processors compete against national brands by taking advantage of a loyal fan base, trying new flavors, exploiting their local roots and identifying niche markets and preferences. For example:

• Bang Caffeinated Ice Cream, Madison, Wis., makes a super-premium ice cream with caffeine (which it calls “everyone’s friend”). A scoop contains 125 milligrams of caffeine, which the company calls equivalent to the amount in a large energy drink. The company’s Iced Latte Da earned second place in the Open Class Ice Cream category in the Wisconsin Dairy Products Association’s 2011contest. Bang’s caffeinated ice cream is available in three other flavors: Peanut Butta, Cooky Mint and Heaps of Gold! The company sells pints to local grocers, other local ice cream shops and online.

• Non-dairy frozen dessert processor Bliss Unlimited, Eugene, Ore., launched four new flavors of its premium coconut milk ice cream made with coconut sugar and superfoods. The flavors are Ginger Cookie Caramel, Chocolate Walnut Brownie, Mocha Maca Crunch and Lunaberry Swirl. The privately owned producer uses organically grown coconut milk, agave syrup and coconut sugar. All the new flavors are free of soy, dairy, gluten and cane sugar. Plus, the ingredients are certified organic, non-GMO and fair trade-sourced when possible, the company claims.

• Salt & Straw Ice Cream, Portland, Ore., carved out a niche as a small-batch processor tapping into consumer interest in local foods and sustainable practices. Owner and culinary director Kim Malek says the company’s marketing focus is “farm to cone ice cream. We personally get to know the folks who provide our ingredients and develop a partnership in developing our flavors. In Portland, people enjoy unique flavors from sources they know and are willing to pay more to support companies who deliver. These trends drive sales because one is able to fetch a premium price for a hand-crafted product.”

In 2012, the company plans to extend its flavors into new forms and expand into other channels and retail locations. Like most ice cream processors, Salt & Straw offers limited-edition flavors because they generate interest and excitement. Salt & Straw sells its flavors in its shop and online ($65 for five hand-packed pints). Its Thanksgiving flavors (available until Nov. 24) are:

• Bourbon Pecan Pie (fresh pecans, molasses, brown sugar and whiskey from Stone Barn on Portland’s Distillery Row)

• Brown-Bread Stuffing (sweet brown bread, savory herbs, fresh roasted Oregon chestnuts and tart apricots)

• Mince Meat (cinnamon clove ice cream swirled with currants, ginger-candied oranges and shortbread cookies)

• Blood Orange Cranberry (cranberries and ribbons of blood orange marmalade)

• Pumpkin Cheese Cake (pumpkins, sweet brown sugar, spices and creamy chunks of cheesecake)

The Holiday collection (sold from Nov. 25-Jan. 1, 2012) consists of Peppermint Cocoa, Gingerbread with Hard Sauce, Eggnog with Butter Rum Caramel, Sweet Potato Marshmallow and Bourbon Pecan Pie.