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Prosper planet pulse
Home»Startups»Premium dessert startup transforms ice cream aisles
Startups

Premium dessert startup transforms ice cream aisles

prosperplanetpulse.comBy prosperplanetpulse.comApril 4, 2024No Comments5 Mins Read0 Views
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The ice cream aisle is undergoing a transformation thanks to emerging artisan brands entering major grocery stores.

Major retailers are looking for frozen dessert startups to follow ice cream giants like Edie’s and Ben & Jerry’s. For example, UK-based The London Dough Co.’s frozen dessert brand Doughlicious was launched in Whole Foods in the US in late 2023. The brand started with a line of low-calorie frozen cookie dough and gelato balls. Preservative and gluten free.

Founder Kathryn Bricken told Modern Retail that many of the buyers she talks to are looking to stock better-for-you products to appeal to health-conscious shoppers.

For years, big brands like Haagen-Dazs and Bryers have dominated the frozen food section with classic flavors like chocolate and vanilla. But thanks to the success of recent players such as Halo Top and Jeni’s, and the growing demand for more premium and healthier products, startups such as Doughlicious and Alec’s Ice Cream are gaining ground compared to larger players such as Whole Foods and Sprouts. He says there is growing interest from grocery stores.

“We realized there was a gap in the market for premium frozen snacks made with the highest quality, clean-label ingredients and innovative, indulgent flavors,” Bricken said. As such, Dalicious is positioned as a healthier alternative to Americans’ increasing snacking habits, sitting next to a large tub of Friendly.

This comes as ice cream consumption begins to change. Total ice cream sales are still increasing in the United States, but much of that is due to inflation rather than units sold. According to NielsenIQ, ice cream dollar sales in 2023 increased by 9.4%, but volume decreased by 2%. While classic flavors like vanilla, chocolate and strawberry remain popular, Nielsen IQ data shows healthier alternatives like sherbet and sorbet are driving growth.

This change is also being felt by major ice cream makers. In March, Unilever announced its decision to sell its ice cream business by the end of 2025, resulting in 7,500 job cuts. The new spin-off companies include brands such as Ben & Jerry’s, Cornetto, Magnum and Talenti. In a statement, the consumer goods giant said the separation was to create a “simpler, more focused and better performing Unilever”.

Following these recent changes, emerging brands say they aim to fill a gap for retailers. Plant-based vegan ice cream startups are at the forefront of that wave. For years, brands such as Van Leuwen and Nadamoo have been one of the hottest companies leading the way in dairy-free options. Additionally, there are subcategories such as Japanese mochi mochi, which is also gaining in popularity, along with traditional American ice cream pints, and more mochi brands are launched each year.

Data from 84.51° shows that total ice cream sales are up slightly year over year, increasing by 4%, but remain relatively flat by unit and household price. And while many shoppers are cutting back on spending on luxury brands, the company said some artisanal brands are outperforming in the category (it’s unclear which ones). Although I didn’t do it).

The new brand also combines sustainability with the development of plant-based ice cream products. Launched in 2021, Alec’s Ice Cream, which makes ice cream using regenerative farming methods, is expanding into more national retailers. Alec’s uses his A2 dairy product in their products, which is a protein that has been reported to be more tolerated by people with lactose sensitivities. The brand will launch nationwide in Whole Foods in 2023, followed by Sprouts, The Fresh Market and Erewhon. We now have 2,000 doors.

The changing home ice cream category is so lucrative that established brands are getting into ice cream.

Doug Taylor, co-founder and CEO of online bakery Taylor Chip Cookies, said his company plans to launch a new grocery ice cream line this year. When the company launched in 2018, it started with cookies because ice cream was a big challenge due to high costs and strict regulations in dairy production.

“If you look around, you’ll see a lot of empty shelf space in the ice cream aisle,” Taylor said. Through his research phase, Taylor said he noticed trends in home ice cream were leaning toward healthier sweets with fewer additives and more natural ingredients. “This aligns with our philosophy and upcoming slogan, ‘Feel Good About It.’”

The company has invested nearly $10 million in its manufacturing and is establishing a 20,000-square-foot facility in Lancaster County, Pennsylvania that includes retail space with a drive-thru and production viewing area.

“We have leveraged resources such as Penn State’s HTST and Ice Cream Short Course and brought in experts from the dairy industry to strengthen our research and development capabilities,” Taylor said.

Dalicious’s Bricken is betting on Americans’ growing affinity for more diverse frozen treat options to fuel the company’s trajectory. ”

“The response from U.S. buyers has been incredibly encouraging,” Bricken said, adding that the brand plans to enter more retail chains this year. “The interest in artisanal premium frozen desserts like Doughlicious reflects a shift toward uncompromising luxury.”



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