Ice Cream is the biggest frozen category and has become increasingly important over the last 10 years.
It accounts for over 36% (Kantar) of ‘eat at home’ frozen sales in Convenience.
Get it right and the Ice Cream category can be a year-round treat for a wholesalers’ bottom line.
It offers both a hugely valuable impulse opportunity worth over £120M and is the jewel in the crown for frozen food consumption, accounting for the largest segment of the growing Frozen Desserts category.
With shoppers’ growing focus on health, an increasing number of manufacturers are launching suitable products – from low calorie and free from.
“With 1/3 of shoppers interested in following a vegetarian diet, it is important to cater for these shoppers where space allows but not at the expense of best sellers,” comments Lucy Richardson, Unilever UK Category Director.
Low-calorie Ice Cream makes up 4% of the category and is growing by over 500% year on year.
Free From also makes up 4% of the category and is growing.
Insights from Unilever’s Partners for Growth category advice programme include: vanilla is still the best-selling flavour of the category; more people are buying ice-cream than ever before; and 20% of Ice Cream sales occur in Winter.
In the UK the ice cream market value tops £3.7 billion (IRI) with wrapped handheld multipacks dominating the category as the largest segment worth £1.9 billion (IRI).
Within convenience and convenience multiples, ice cream sales are currently worth £820 million (IRI), with handheld multipacks sitting at £408 million (IRI).
Despite a challenging year in 2023 for ice cream manufacturers, Mars has continued to outperform the overall market in value sales (+3%) and notably multipack value sales (+4%) which was its best performing sector for 2023 (IRI).
Mars Ice Cream portfolio has shown exceptional growth in the category, with multipacks being the top performer in symbols and independents accounting for (+89%) to value sales and (+66%) in multipacks units (IRI).
Michelle Frost, General Manager at Mars Chocolate Drinks and Treats, comments: “The continuous growth of handheld multipacks in the category is driven by consumers looking to enjoy ice cream as an in-home treat. Last year, Mars delivered an impressive (+6%) value growth in the category and an outstanding (+18%) increase in units. This performance was four times more than other manufacturers, firmly solidifying its position as a front runner in the competitive category (IRI).
“Our branded Mars and Snickers products continue to be our best sellers, showing there is still an appetite for the flavours of our iconic confectionery bars!
“We are also seeing growth with brands such as Twix and Bounty, which switched to a four-bar multipack in 2023.”
Maltesers Ice Cream bar combines soft malt flavoured ice cream, scattered with mini Maltesers honeycomb pips, covered in a smooth milk chocolate.
Both multipacks and singular impulse bars are available now in convenience and wholesale channels; multipack RSP £2.50, single bar RSP £2.00.
Nicole Whelan, Head of Brand at Häagen-Dazs UK, comments: “While many consumers will turn to their favourite tub and a scoop when an ice cream craving calls, new formats are becoming increasingly popular. In fact, thanks to bite-size and single-serve options, premium ice cream is now being considered for the evening snack occasion as well as for dessert, taking a 20.7% share of the occasion (Kantar).”
Häagen-Dazs is meeting this growing demand with a game-changing NPD launch: Häagen-Dazs Bites: a different format that meets demand for new food experiences, but in the flavours consumers know and love. With Bites also ideal for sharing, they’re perfect for entertaining at home, which is seeing a resurgence as people look to socialise on a budget.
January saw the brand kick off 2024 with a brand-new snacking format: Salted Caramel Bites and Chocolate Bites. Häagen-Dazs Salted Caramel Bites feature salted caramel ice cream, with a caramel sauce core and crunchy golden caramel, white chocolate coating. For the chocolate-lovers, Chocolate Bites showcase the richness of the ice cream with an indulgent chocolate sauce core and same crunchy casing.
“Häagen-Dazs is the highest-ranked ice cream brand in the UK for superior taste, craftmanship and a brand worth paying more for (IPSOS),” adds Whelan. “We know our customer base are loyal to the core Häagen-Dazs range, which is performing at 13% growth year-on-year (Nielsen), indicative of a time when household budgets are squeezed, and consumers are risk averse.”
Marie-Emmanuelle Chessé, International Development Project Manager at Tipiak, which supplies frozen, authentic French sweet and savoury pâtisserie to the hospitality sector in the UK, comments: “There are lots of benefits of frozen food, but convenience is right up there at the top. We supply our sweet and savoury canapés frozen – only to the foodservice and wholesale market in the UK. Our customers use frozen goods because, when defrosted, our products are at the peak of freshness.”
It also helps to reduce food waste – an increasingly important consideration. Pre-prepared frozen food is supplied in a consistent shape, size or portion which helps with presentation and cost controls. It’s perfect for long-term planning too.
Authentic French pâtisserie is tricky to make from scratch so buying in frozen pâtisserie is a great alternative for professional kitchens that don’t have staff who are skilled in this area.
“As the cost-of-living bites, we’ve seen consumers switching from fresh to frozen food – recognising that frozen food can help save money – and the same thinking applies to the food service sector,” adds Chessé. “Frozen food helps caterers to keep control of costs, which is ever more important as we continue to navigate challenging times, and reduces workload, especially helpful when kitchens are struggling to recruit back-of-house staff.”
Alongside frozen savoury Tipiak canapés, which are ideal for events and other occasions, Tipiak supplies gluten-free macarons to the UK food service sector.
Its ‘thaw and serve’ French macarons are now available to retailers as well as food service operators. Tipiak also recently launched gluten-free heart-shaped macarons to the UK food service sector via frozen food distributor Central Foods.
Macarons are extremely versatile so it’s little wonder that they are currently the darlings of the pâtisserie world.
They can be served by food service professionals as accompaniments to hot beverages, as part of afternoon tea, which is a popular occasion in the hospitality world, in a stunning macaron tower or increasingly they are being used to decorate cakes, shakes and ice cream sundaes.
In the home, consumers love them too because they are great for bringing a little French flair to the table.
They are perfect served with coffee, as a dessert sharing platter, or mini dessert.
They are also super, easy-to-use toppings for homemade cakes and cupcakes, giving a little extra chic to home baking – a popular pastime with many particularly following the success of The Great British Bake Off television show.
Tipiak’s macarons are made in France using an authentic recipe, with the finest quality almonds.
Produced in a dedicated gluten free bakery means they can be enjoyed by all, too.
To support sales of the range, Tipiak has free allergen fact sheets for each product available for download direct from its website.
These detail every allergen in each product so caterers and consumers can be assured about the ingredients and serve or eat with confidence.
“Our advice to wholesalers looking to maximise frozen sweet treat sales would be to stock macarons because they are popular both within food service and with consumers,” says Chessé. “Macarons truly are one of the most treasured French desserts in the world.”
Naomi Tinkler, Category Director, McCain, comments: “Currently the frozen category is valued at £8.1bn. The frozen food category is continuing to gain in popularity, offering great taste, convenience and flexibility to consumers. This has become more apparent in the cost-of-living crisis, with shoppers looking for budget-friendly items made from quality ingredients that are sourced sustainably.
“This trend for frozen can be beneficial to wholesalers who should invest in the category by stocking UK brands that consumers enjoy. Creating fun and innovative marketing campaigns, installing eye-catching displays and following the latest trends will also ensure wholesalers are increasing sales and attracting more customers to the category.”
As McCain is a staple favourite for shoppers in frozen, wholesalers can partner with McCain to introduce a range of products to meet a range of price points, family structures and lifestyles choices.
McCain’s best-selling products include Home Chips, French Fries, Jacket Potatoes, and Baby Hasselbacks.
The brand’s latest NPD is new Baby Hasselbacks. These are the perfect side dish to give midweek dinnertimes a feel-good wow-factor.
The product was inspired by consumer insight which revealed that shoppers lack inspiration for midweek meals and regularly struggle to find quick and easy choices that deliver both on taste and value. Not only will the new product provide consumers with convenience and quality, but it will also increase appeal to the growing frozen food category.
Skin on, whole baby potatoes are pre-sliced and slow baked for flavour and crispiness, meaning McCain Baby Hasselbacks present the perfect solution to those struggling with the monotony of midweek meals. McCain consistently performs well in the category thanks to its product portfolio and marketing strategies which bring families together for healthy mealtimes.
McCain has been a family favourite in the UK for over 50 years, with a product range that caters across lifestyles and occasions.
As a result of investing into marketing strategies over the pandemic McCain kept the brand front of shoppers’ minds and cemented its place in consumers’ hearts. Recent innovations such as Baby Hasselbacks also help the brand target consumers looking for healthy, interesting side dishes.
“Wholesale ranges should focus on the needs and wants of the consumer and stock well-loved brands that customers recognise and trust to provide high-quality products,” adds Tinkler.
“At McCain, we provide consistent and reliable staple foods in the frozen category with a range of products to suit different consumer needs. This reliability to offer first-rate, and convenient meal-time choices is what inspires our customers to purchase McCain year after year, with brand loyalty being something that wholesalers can benefit from by continuing to support the brand.”
“In a competitive market, wholesalers can provide products which cater to different customer preferences, offer competitive pricing and convenience, nutrition and great taste. Additionally, wholesalers should invest in good marketing strategies that reach a wide audience of potential customers, highlighting the benefits of the frozen food category, whilst also offering good product variation and food that caters to a range of dietary needs,” says Tinkler.
“Wholesalers should ensure that their ordering process is seamless, meaning customers aren’t wasting time when trying to check out with their goods. Offering free shipping can also help increase sales. Providing merchandising support to retailers is also important, with wholesalers that offer point-of-sale materials, eye-catching displays, and promotional signage to increase product visibility often enjoying an increase in sales. Special deals are also an effective way to increase sale volume.”
McCain continues to work closely with wholesalers to ensure products are presented attractively to elevate the shopping experience for both new and loyal consumers shopping online or instore. McCain also continues to develop its range of products, listening to customer insights and jumping on the latest trends, to ensure that every taste is catered for.
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