09Apr2011
Healthy Indulgence Drives Ice Cream
Brands outperformed private label in both ice cream and novelties in supermarkets during the 12 weeks ended Feb. 20, according to SymphonyIRI Group, the Chicago-based market research firm. In both categories, “healthy indulgence” continues to grab increased attention and sales.
“We believe dollar sales will continue to grow as the economy rebounds,” says Craig Hall, general manager of Mars Chocolate North America (www.mars.com), Hackettstown, N.J.
“But consumers are seeking more value for their money. We’re addressing this by identifying ways to reduce manufacturing costs without compromising quality.” He adds that the company has not moved away from ice cream to frozen dairy desserts, as some competitors have.
CHANGING TASTES Matt Olerio, president, Roba Dolce, (www.robadolce.com), Warwick, R.I. which is expanding rapidly in the U.S. and internationally with both branded and private label gelato products, also believes quality is key as peoples’ tastes change. “Consumers are different than they were just four or five years ago. You can see that in the thousands of gelaterias and cafes that have sprung up in thousands of metro and suburban areas,” he says.
“People used to think it was an Italian ice. Now they know it’s a superpremium but made with half the butterfat and the finest ingredients in order to get that intense flavor. To retail buyers, gelato is no longer incremental business. It’s part of every planogram and fast becoming a category of its own,” he says.
Cynthia Harrison, national grocery account director, GS Gelato (www.gsgelato. com), Fort Walton Beach, Fla., agrees. “Everyone is pushing for things like gluten- and hormone-free or just pushing for healthy in general. People are looking closely at ingredients and what they put in their bodies. Gelato fits in perfectly,” she says. “It’s getting more shelf space because retailers understand they can offer a premium product without all the trans fats and cholesterol.”
In fact, the company recently redid its packaging and put gluten-free and trans fat-free symbols on the front to take advantage of consumer health concerns. “Anything a manufacturer can do to make it easier for consumers is a bonus. It can really make a difference in what they choose to buy for their families,” says Harrison.
IN-AND-OUTS
The company is researching potential new products and may consider in-andout items like its King Cake Gelato, which was available for 12 weeks around the time of Mardi Gras in New Orleans. This spring, the company will introduce GS Gelato minis, 3.5-ounce containers with a wooden spoon inside. “It’s a nice low-calorie snack option and gives retailers the opportunity to do a demo without a demo. Who wouldn’t want to at least try something new for $1?” Harrison asks.
Meanwhile, higher commodity costs are going to have an impact on pricing eventually. “We don’t have the costs associated with high butterfat products. But we do import about 80% of our ingredients from around the world. So we have to deal with fuel and freight increases. We might take a little hit. But programs are paid out for the year and there aren’t a lot of price changes this year. However, it might affect what we have to do in 2012,” she says.
“The current state of our economy paired with rising commodity prices will continue to challenge our industry, notes Veronica DeCristoforo, CEO, Lindy’s Homemade (www. lindyshomemade.com), Charlotte, N.C. “In order to stabilize the effect to our customers at the shelf level, we have partnered with retailers to find a common resolution in promoting and selling product.”
“Manufacturers strive to continue finding efficiencies in their operations. But that only goes so far and prices on the shelf will continue to rise,” she says. DeCristoforo adds that there is a need for both ‘healthy’ and ‘indulgent’ products on the shelf, since consumers tend to alternate between options depending on their mood at the time.
Joao Sousa, associate brand manager, Stonyfield Farm (www. stonyfield.com), Londonderry, N.H., says that although there has been concern about the price of cocoa, “We’ve hedged our position and so far our supply chain team says it’s not a big issue.”
As to new items, “People are moving away from the typical 16-ounce pint towards novelties and non-dairy items,” according to Sousa. In order to meet this trend, the company is launching two new novelties at Whole Foods — vanilla and chocolate fat-free yogurt bars. The items carry a suggested retail of $5.99 for a six-pack, he said, noting that quart sizes will also be available for the same price.
NEW SWEETENERS
Happy and Healthy (www.happyandhealthy. com), Boca Raton, Fla., with products that are gluten-free and have no artificial preservatives, is also using organic evaporated cane juice as a sweetener, notes Rita Hammett, director of communications.
On the new product front, the company is looking at more Hispanic flavors like horchata, which is doing well in both mainstream and ethnic stores. At the same time, the company is continuing with its “handcrafted” fruit bars. “We use big pieces of fruit in our bars and they won’t fit through the nozzles of extrusion machines, and pouring keeps the quality consistent,” she says.
Even the indulgent segment is catering to the health-conscious. As Gary Barron, president, Sheer Bliss (www.sheerblissicecream. com), Sunrise, Fla., notes: “We’re finding that consumers for the most part are calorie-conscious. But they also want that quick fix of sweetness.” Accordingly, the company is expanding its Bliss Bites line, a bon bon that uses premium ice cream dipped in gourmet chocolate. New flavors include dark chocolate and coffee and vanilla, dipped in milk chocolate.
“Portion control is the key,” says Barron. ”People want something to grab on the way out. They don’t always have the time or desire for a full-size novelty bar or a scoop from a pint. We’re not in the health business. Our responsibility is to use the highest quality ingredients available. But people know more about what goes into their bodies these days and I think that makes our job a lot easier since we are presenting them with high quality products that only use pure ingredients,” he says.
Ciao Bella, Florham Park, N.J. (www.ciaobellagelato.com), which has gelaterias as well as a retail line, has moved to products sweetened only with organic cane sugar rather than refined, says spokesperson Deborah Holt. The company is introducing three-ounce blueberry/passion fruit sorbet bars in three-packs with a suggested retail of $3.99 to $5.29. On the more indulgent side, the company is introducing S’mores-flavor gelato made with Belgian chocolate.
90-140 CALORIES
David Edelstein, director of sales, Mister Cookie Face, Inc., (www.cookieface. com), Lakewood, N.J., believes the health-conscious trend of the past few years has helped the business. “For many years, the industry has been aware of things like nutritional content and calorie count. What’s changed now is the focus on portion control and products that may be only 90 to 140 calories, but enough to satisfy people.”
Craig Hall of Mars agrees. “We think the area of smaller portion sizes for real with full flavor will continue growing. We’ve had a lot of success with our 90-calorie Snickers, Twix, Milky Way and 3 Musketeers miniature bars.”
But the company is also adding to its regular pint line with Mars candy pints with Snickers Rocky Road, chocolate and marshmallow with chocolate covered peanuts and chopped Snickers bar pieces; Milky Way, chocolate malt with caramel and chocolate chunks; and Twix peanut butter.
Additionally, Mars is re-launching Dove in 2011 with several new with several new items including a peanut butter Dove bar and television advertising for the first time in several years, says Hall.
Satisfying consumers also means looking for new flavors catering to ethnic tastes. This is the path taken by Rajbhog Foods (www.rajbhog. com), Jersey City, N.J., a full line Indian food manufacturer. It is introducing flavors like coconut, carrot, lychee, fig and mango to the American market.
“We’re a small batch manufacturer, so we can do special formulations. All our novelties are eggless. In the U.S., you can be a vegetarian and eat eggs. But in India, vegetarianism means that, other than milk, no animal product is acceptable.” says Suzy Mody, vp, sales and marketing.
“Reaction from buyers has been pretty good and we’re gaining momentum. But we’re a small batch ethnic company and may not have what they’re looking for in stocking fees,” she says. “And the more we as manufacturers have to pay, the more expensive the product has to be and we don’t want to price ourselves out of the market.”
