High-fat heaven

Dairy Foods, March, 1999 by Gerry Clark

With consumers saying 'no way' to no-fat, processors are working to keep them floating on clouds of creamy ice cream

Call it backlash ... or the antithesis of functional foods. But increasingly, consumers say that when it's time to hit the freezer and scoop out a dish of ice cream, it should be worth enjoying. And that means calories and fat levels be damned.

Dairy processors this season are preparing to roll out the carpet for numerous products that tantalize the taste buds but leave the nutritional concerns to the supplement and nutraceutical makers.

If there was any doubt that consumers love butterfat, that was erased by ice cream's 7.2% sales increase in 1998. Overall ice cream sales hit $3.589 billion in a year in which butterfat prices hit records and ice cream prices followed. However, unit sales were up just 0.7%, reaching 1.1 billion.

The overall frozen dessert category totaled $5.749 billion. Novelties performed OK, enjoying a 2.6% sales increase, while sherbet/sorbet/ices dipped 1.4%. Frozen yogurt fared far worse, with sales dive-bombing 19.3%.

"The bottom line is consumers want ice cream that tastes good," says Carl Breed, director of marketing, Blue Bell Creameries L.P., Brenham, Texas. "They realize full-fat ice cream tastes better than health-claim ice cream. Consumers follow many healthy diets, but when it comes to ice cream, they like to reward themselves with the best, and full-fat ice cream is certainly the best."

People are looking at the "big picture" in terms of nutrition, examining their overall diet and not nit-picking each and every food they put in their mouths, experts say.

The Ice Cream Top 10
(Sales in millions)

1. Private label                   $855.2       2.9%
2. Breyer's                        $443.9       15.4%
3. Dreyer's/Edy's                  $374.9       3.5%
4. Blue Bell                       $199.2       14.9%
5. Haagen-Dazs                     $167.9       10.3%
6. Ben & Jerry's                   $137.8       20.0%
7. Healthy Choice                  $99.6       -6.2%
8. Turkey Hill                     $85.6        13.4%
9. Dreyer's/Edy's Grand Light      $82.3       -8.8%
10. Wells' Blue Bunny              $81.7        29.7

Total Category                     $3,589.4     7.2%

52 weeks ending Dec. 6, 1998

Source: Information Resources Inc.

"Consumers are smart," says Mary Lou Kelley, director of product marketing, Ben & Jerry's Homemade Inc., South Burlington, Vt. "As consumers learn more and more about nutrition, they know 'no fat' doesn't mean no consequence or no calories."

The result? Check out some of this season's new flavors: Mocha Almond Fudge, Javanilla, Bovinity Divinity, Triple Caramel Chunk. They sound a lot more fun than Tofu Carob Chip or Low-fat/No-flavor Swirl, don't they?

"Although the number of new products is down, the quality seems to be up, as is the level of innovation," reports research group Find/SVP Inc. in its 1998 report, The Market for Ice Cream and Other Frozen Desserts. "In the frozen dessert market, more new product types are being introduced, such as sherbet and ice cream mixes, frozen yogurt and fruit mixes (smoothies), and new kinds of novelties. As the frozen dessert industry consolidates, the product lines themselves are becoming more fragmented."

Sherbet/Sorbet/Ices

(Sales in millions)

1. Private label                   $53.8       6.3%
2. Haagen-Dazs                     $28.7      -19.4%
3. Dreyer's/Edy's Whole Fruit      $16.9       17.4%
4. Ben & Jerry's                   $13.2      -22.0%
5. Dreyer's/Edy's                  $10.5       42.2%
6. Blue Bell                       $8.9        12.8%
7. Kemps                           $6.8        64.9%
8. Breyer's                        $4.2       -16.3%
9. Wells' Blue Bunny               $3.0        7.1%
10. Prairie Farms                  $2.5        10.8%

Total Category                     $196.6     -1.4%

52 weeks ending Dec. 6, 1998

Source: Information Resources Inc.
Novelty Items

(Sales in millions)

1. Private label           $276.9                 7.0%
2. Klondike                $105.9                 12.2%
3. Popsicle                $99.7                  8.3%
4. Drumstick               $90.3                  0.8%
5. Haagen-Dazs             $54.8                 -11.4%
6. Dole                    $46.7                 -3.0%
7. Eskimo Pie              $43.1                 -3.3%
8. Dove Bar                $39.7                  4.9%
9. Blue Bell               $36.2                  16.2%
10. Wells' Blue Bunny      $36.0                  16.8%

Total Category             $1,661.1 billion       2.6%

52 weeks ending Dec. 6, 1998

Source: Information Resources Inc.

The report also reflects what ice cream manufacturer after ice cream manufacturer knows: "Ultimately, taste is king. Consumers are no longer willing to compromise on taste in order to eat reduced-fat or fat-free foods.

Ben & Jerry's, faced with dismal sales for its sorbets, is slicing the line down to a lean four: Doonesberry, Purple Passionfruit, Lemon Swirl and Devil's Food.