Scoop Up Sales

Nothing beats the sweltering heat of August like a creamy ice cream cone or a refreshing cup of gelato, but sales for frozen treats are in a bit of a sales freeze right now. According to an April 7 blog post by global market research firm Mintel, the global market for ice cream saw only a 3 percent increase in sales in 2014, while the U.S. market saw none. But that unfortunate reality doesn’t mean that all sales growth opportunity is lost for the category.

“Retailers have the opportunity to transform the frozen treat category into a shopping destination and drive greater store loyalty by appealing and aligning with shopper needs,” says Michelle Tonner, director with Stamford, Conn.-based Daymon Worldwide. “The key is to generate more excitement, involvement, interest and enjoyment.”

Two shopper needs to which retailers could cater with store brand ice cream and gelato products are better-for-you and super-premium items.

Highlight health

One reason for lackluster ice cream sales, not surprisingly, relates to health. Consumers are making an active effort to eat more healthfully and ice cream, by and large, isn’t healthful. Better-for-you options such as frozen Greek yogurt or products containing simpler, more natural ingredients, though, could give shoppers a better feeling about buying ice cream.

According to Mintel, non-dairy frozen treats are seeing a sales spike, with 45 percent of consumers indicating that they are buying more of them. Interest in non-dairy ice creams, often made with milk alternatives such as almond or soy milk, has grown enough that ice cream goliath Ben & Jerry’s, South Burlington, Vt., announced in June that it is currently working on its own line of non-dairy varieties.

And according to Tonner, frozen yogurt is another segment of the ice cream category that is continuing to expand because of consumers’ health aspirations.

Retailers might also want to highlight the healthful attributes of store brand gelato. A June 16 post by The Salt, a blog from the NPR Science Desk that discusses food, says gelato features all of the flavor of regular ice cream, but its Italian-style manufacturing involves less cream and more milk, meaning it usually has less fat. Messaging that calls out the lower fat content of store brand gelato could entice shoppers who are trying to avoid the calories of traditional ice cream to give it a try instead.

“Amongst the trends in gelato production, currently the most important one for retailers to pursue is gluten-free,” adds Simone Rovai, marketing, communication and event manager for Italy-based G7 Gelati, which manufactures a wide variety of gelato products, both branded and for private labeling. “The benefits that consumers seek from the consumption of gelato are enjoyment of a sweet product, but also one that is fresh, genuine and nutritious,” he says.

Offer indulgence

But given that ice cream is a treat, many other consumers are still interested in varieties that offer a real sense of indulgence.

“Super-premium ice cream products and flavors are popular now,” says Matthew Thornicroft, assistant marketing and communications manager for Cleveland-based Pierre’s Ice Cream Co. “Ice cream is just as much an experience as it is a treat or a snack.”

According to Mintel, almost half of consumers consider the ice cream served in restaurants or ice cream shops to be better than what they can find in the grocery store freezer case, Tonner states.

“That tells us consumers want to be able to go to the freezer in their own home and enjoy high-value, quality taste and bold innovative flavor varieties that are competitive with foodservice offerings,” Tonner goes on to say, adding that premium and super-premium varieties are experiencing double-digit growth and “are areas of opportunity where retailers can differentiate themselves from competitors and national brands alike.”

When producing super-premium ice cream, it is crucial that only the highest-quality ingredients and flavors are used, Thornicroft says. While shoppers do care about cost, they see extra value in superior, decadent taste.

“It’s helpful to understand that while increased quality may cost a little more, consumers appreciate the added benefits and recognize the difference in quality,” he says.

But before retailers put store brand super-premium ice creams on the shelf, they need to make sure that their offerings really match consumer expectations for such a product.

“Retailers are developing more and more premium-tier products and passing them along as super-premium,” Tonner states. “Consumers react negatively to this when they recognize that they are paying more for the product, but the quality is only on par with existing premium items.

“Retailers should consider a fourth tier of products that truly delivers a super-premium experience, created in smaller batches using the highest-quality ingredients, and being mindful of clearer, shorter ingredient statements,” she adds.

Besides premium ingredients, flavor is also incredibly important. Mintel notes that flavor is “the most common retail purchase driver” for ice cream. There is no shortage of available creative ice cream flavors.

“There’s a growing appetite for adventure,” Thornicroft notes. “Savory flavors and flavors with heat are becoming more popular.”

According to results of the 2015 Annual Ice Cream Flavor Contest, conducted during the Washington-based International Dairy Foods Association’s annual Ice Cream Technology Conference, current popular flavors feature berries, bakery treats such as waffles and cookies, and beverage flavors such as lemonade and hot chocolate. But more adult ingredients such as alcohol are also increasingly being seen in ice cream and gelato products, while Mintel notes the rise of sweet-and-salty combinations such as salted caramel.

Whatever the flavor, “you want your consumer to feel that purchasing your product will help them create the best experience possible and that the flavors you’re offering were created just for them,” Thornicroft says.

Get noticed

To get store brand ice cream and gelato products noticed, retailers need the right packaging and claims, too. For example, consumers across the board are responding to messaging on the package that showcases products as local or artisan, while shoppers wanting health benefits look for claims such as “good source of protein” and “contains vegetables and fruit,” Tonner notes.

“Free-from” claims such as “GMO-free” and “hormone-free” are also enticing to ice cream consumers, Mintel states.

On the gelato front, claims regarding authenticity such as “hand-filled,” “hand-decorated” and “handmade” are all effective, Rovai says, as is“made in Italy.”

When it comes to gelato packaging style, Tonner points out that transparent packaging is more common in stores. And packaging that evokes a sense of nostalgia could also drive purchases of both gelato and ice cream.

“Nostalgia is a highly powerful marketing tool in the ice cream market,” she notes. “Many brands tap into this trend by launching nostalgic products and package designs that trigger positive childhood memories in consumers.”

Do offer more healthful ice cream and gelato options.

Don’t sell premium ice cream at a super-premium price; consumers know the difference.

Do offer new, unusual flavors, including savory and spicy.

Don’t ignore the rising popularity of non-dairy options.