A premium on premium

Premium and super-premium options are revitalizing the ice cream category, exciting consumers and driving sales.

Decadent dessert is making a comeback.

For years, low calorie, sugar-free, diet-friendly ice cream and frozen novelties drove consumer demand. However, it seems that consumer desire has once again rotated 180 degrees.

When today’s shoppers are not juicing kale and cucumber, they are looking to indulge. However, clean labels are still important, even when it comes to sweets, say industry observers. Some of the big ice cream brands are starting to pick up on these trends in an effort to satisfy a demanding consumer base. For example, in 2014, Ben & Jerry’s, a Unilever-owned brand, made a promise to source Fair Trade and non-GMO ingredients whenever possible.

Manufacturers that are able to marry these two ideas—offering premium quality product with a clean, natural ingredient list—are successfully winning consumers over. Officials at Conestoga, Pa.-based Turkey Hill Dairy, say their all-natural line is one of its top sellers. Products in the line feature a short, simple list of ingredients, with no additives or stabilizers.

“We’ve seen the biggest growth, especially in some of our newer markets and some of our core customers locally, with our all-natural ice cream,” says Turkey Hill’s trade marketing coordinator, Colin Wright.

All-natural ice cream options that keep the focus on the basic ingredients needed to make ice cream—milk, cream, sugar—often have a higher butterfat and a richer taste, giving them that super-premium feel consumers seek. “If you compare the super premium items to the lower tier, you will start to see a lot fewer ingredients and a lot more focus on seeing that every ingredient on the list is natural,” says Michael Leb, CEO of Pasadena, Calif.-based Choctal, a single origin ice cream company.

The concept of single origin has piqued consumer interest, thanks to its simple yet unique flavor profiles, say observers. Choctal, for example, features a line with four chocolates and four vanillas, each sourced from a different location like Ghana, Tahiti or Costa Rica, which company officials say creates a noticeable taste differentiation. Choctal is also denser than other ice creams, due to less air in the package. Consumers are responding to the rich, indulgent taste of the product, says Leb, adding that the chocolate has even been called “too chocolatey, which is a great thing to say about chocolate.”

Another bonus for retailers with regard to super-premium, note observers, is the ability to sell at higher price points. Though price is always an important factor, consumers have warmed to the idea of spending on products that they deem worth the splurge. They are looking for “things that they don’t feel bad about spending a little bit more on because they are getting something that is high quality and premium,” Wright adds.

As popular as super-premium ice cream has become, the product that has made the biggest impact on the category as of late, observers say, is gelato. The hot item in the frozen section, they add that the growth of gelato is one of the main driving factors in the entire category. Many credit this to the success of Talenti. In the 52 weeks ended November 2, sales of Talenti gelato and sorbet spiked 81.8% and 54.4% respectively, some of the strongest dollar sale growth in the category overall.

Last December, Talenti proved its worth and staying power when the brand was purchased by Unilever, adding to the company’s portfolio of ice cream brands, which includes Ben & Jerry’s, Breyers, Good Humor, Klondike and Magnum.

“We believe that our broad scope, scale and expertise across the ice cream category will further grow the Talenti brand,” says a spokesperson from Englewood Cliffs, N.J.-based Unilever. “Retailers will benefit from Unilever’s strength in innovation and distribution.”

Looking toward the future, retailers should expect to make more room in the freezer for gelato as observers say the popular trend is only going to continue to expand in 2015. Turkey Hill has plans to release a gelato line this year, and Turkey Hill officials say the products will be the first to be called all-natural, making the line an even more promising shelf addition.

Of course, existing giant Talenti has no plans of slowing down and resting under Unilever’s wing. “Talenti is looking forward to an exciting year of growth in 2015, including plans to expand its line of gelatos and sorbettos,” says a spokesperson from the Minneapolis-based brand. “In addition to introducing several new flavors throughout the year, Talenti will offer a range of packaging sizes beyond the standard pint, with select flavors available in quart and half gallon packaging. 2015 will also bring a focus on expanding retail distribution to reach new channels.”

Salted caramel craze

Consumers are showing a desire “to venture outside of the iconic flavors and unlock their inner ‘foodie’ with creative flavors,” says Sean Greenwood, PR poobah for Ben & Jerry’s, based in South Burlington, Vt. Nowhere is this more evident, say observers, than the overwhelming success of salted caramel. It seems as though within the past year the options for salted caramel have exploded, with every brand finding a way to introduce the flavor into its lineup.

Turkey Hill, Ben & Jerry’s, Yasso, Talenti and dozens of other brands have capitalized on this flavor trend.

Consumer interest in unique flavors means that for manufacturers, it is a race to see which innovation can sustain consumers’ attention. “Brands seem to be searching for the latest salted caramel, looking for what is going to be the new all popular flavor,” adds Choctal’s Leb. 

Low calorie, high quality

Even when it comes to “diet” items, consumers still want to feel like they are indulging. Frozen novelties are a popular way to accomplish this, as manufacturers can create premium products in a portion-controlled size to manage the calorie count.

When it is time for dessert, the majority of consumers are looking for “items that still taste great, have that indulgent taste factor, but are still better for you in terms of nutritional values and the ingredient statements,” says Amanda Klane, founder and co-CEO of Boston-based Yasso Frozen Greek Yogurt.

Last year, Yasso introduced five indulgent flavors including a sea salt caramel and mint chip. The company plans to continue with similar launches in 2015, as well as put out a new form of novelty product. Klane adds, “if its good for you, and it tastes great, people are willing to pay that premium for the product.”

Skinny Cow, a Nestlé USA, brand known for its low calorie ice cream selection, is working to reinvent its image in the New Year, by  focusing on the decadence of its product offering. Skinny Cow is introducing Chocolate Dipped Ice Cream Bars to its line. The bars consist of low fat ice cream fully dipped in chocolate for an indulgent factor to appeal to consumers’ desire to treat themselves, say officials for Glendale, Calif.-based Nestlé USA.