ICE CREAM CATEGORY
..., which was soon to be acquired by Unilever and become Good Humor-Breyers. „h Ben & Jerry¡¦s is a wholly separate subsidiary of Unilever, but still related by adoption. KEY PLAYERS: DEE HADLEY, Director of Marketing, Packaged Goods TERRY OLSON, VP, Marketing and Product Development (Terry is oft-quoted in the trades¡Kseems to be the voice of GH). CATEGORY INFORMATION/TRENDS/ISSUES „h Biggest trend in the industry right now: the low-fat trend that had been falling off since its heyday in the early 1990s showed a big resurgence in 2002. Retailers must offer remarkable diversity in this category: from truly indulgent treats to low-fat, low-carb, non-sugar-added alternatives. Also, fortification (e.g. calcium-infused ice cream). Consumers are ¡¥awakening to the need to lead healthy lives, and feeling the hangover of the ¡¥supersize¡¦ 1990s. „h Frozen novelties (bars, popsicles, fudgsicles etc.) continue to be a huge growth area: 2.2B in sales last year, 8.2% increase vs. YAG. Industry watchers say this growth is fueled by post-9/11 return to ¡¥home and hearth¡¦, classic Americana comfort food by the American consumer. Page 2 „h Additionally, the rise in obesity-related diabetes has prompted new product development to provide healthy but indulgent alternatives. „h ¡§Consumers had been very disappointed by the taste and the number of calories (in low fat products) but now a lot of companies are coming back with products to address these concerns.¡¨ „h Current issue: dairy farmers and food companies are facing off again over which ingredients should be allowed in ice-cream production. Manufacturers want to use things like whey and other partial dairy products; hard-hit dairy farmers obviously want all dairy. And soy manufacturers are doing their own thing anyway. „h Biggest retail story for ice cream: drug retailers like Walgreens, CVS, etc. are cashing in on ice cream sales. Ice cream sales in this channel are up nearly 15% vs. YAG because customers are embracing drug stores as a more convenient place to shop (vs. convenience stores). „h Current issue and trend: rising price of key ingredients like cream, butterfat, cocoa and vanilla are causing ice cream prices to skyrocket. In order to maintain margins and keep costs in check, many manufacturers are looking for w...