Join the dark side, we have ice cream!
Stanislas Dallest
The start of the summer means discovering the latest Magnun flavor!
And this year Unilever presented the double gold caramel billionaire… a tasty program ?
But the story does not end here.
Nope.
This year will be different. VERY DIFFERENT!
Prepare your stomachs for the largest avalanche of innovations ever seen in the freezers of Spain.
M&M’s, Nocilla, Cacaolat, Ferrero, Raffaello, Haribo, Oikos… all the blockbuster brands in the world of snacking and confectionary have decided to move on to the “dark side” and invest in one of the fastest growing categories in grocery retail: ice creams.
According to data published by the Ministry of Agriculture, Fisheries and Food (MAPA), ice cream consumption increased by 5.8% last year despite a summer marked by the absence of international tourists. The Spaniards consumed more than 143 million kilograms of ice cream in 2020!
Manufacturers follow two main growth models when entering the category:
- Development of in-house production capacity: Ferrero’s example that bought a majority stake in Valencian company ICFC to produce its Rocher and Raffaello ice creams
- Licensed production: the most “common” model of brand licensing to large groups such as Unilever, Nestlé or La Menorquina
The ice cream world is complicated, and the support of an expert company is essential to take first steps in the category.
First frozen products require special attention during production, transport and distribution.
Second, distribution channels are characterized by being VERY fragmented. Additionally, the significant weight of out-of-home sales requires a very extensive commercial capacity to ensure the success of a product with sales concentrated in a few months.
Finally, the strong seasonality of the category requires an almost immediate start-up of the value chain which can be delicate to achieve in a first year of activity.
For these reasons, the licensing model is so successful. It allows large groups such as Unilever or Nestlé to bring powerful innovations hand in hand with well-known brands that benefit from an attractive “range extension” during the summer.
On the other hand, the development of in-house production capacity responds to a longer-term commitment to this category with the desire to ensure a greater profit margin thanks to production control.
It will certainly be a summer to remember and we at POS Potential are already dreaming with more exotic variants joining the “dark side” of the ice cream category ?
If you’re reading this, you’re one step away from selling more and better! Did you enjoy the read? Please, tell us more!
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El consumo de helados en los hogares sube el 5,8% https://www.mapa.gob.es/es/prensa/ultimas-noticias/el-consumo-de-helados-en-los-hogares-sube-el-58
