A N-ICE SALES OPPORTUNITY

JASPER HART looks at the yearround possibilities ice cream offers

The Ice Cream Opportunity

AS the weather (apparently) gets warmer and spring nears, retailers should have one eye on their freezers and the role sales of ice cream will play in driving profits.

According to Michelle Frost, general manager at Mars Chocolate Drinks & Treats (MCD&T), the category is worth £3.4bn in the UK, with convenience sales accounting for £790.6m. Handheld multipacks are the largest segment within convenience stores, with £378m in sales.

“It has been an interesting year for ice cream in the UK,” says Frost.

“Where we have seen major multiples dip slightly, the independent and convenience channels have enjoyed much more favourable levels of growth attributed to the warm weather. For our handheld singles, we have seen value sales increase by up to 20% within impulse channels.”

As in other treat categories such as confectionery and soft drinks, brands have a key role to play for ice cream sales, as customers look to spend dwindling disposable income on established products.

“As the cost of living continues to rise, we are expecting more consumers to seek everyday luxury in more affordable and accessible formats,” says Jose Alves, head of HäagenDazs UK at General Mills UK.

Mars’ ice cream range has a 42% market share, and Frost says it has delivered more than six times the growth of the category average and more than any other manufacturer. Meanwhile, within the premium ice cream segment, Ben & Jerry’s has a 29% market share, according to Statista. Keeping the right formats can also contribute to crossselling opportunities. “Last year, Häagen-Dazs research in- dicated that while one in three shoppers were hosting a big night in weekly and that 60% of consumers were planning to choose ice cream for a movie night at home, almost half –43% – couldn’t find the dessert options they wanted in store,” says Alves.

“The big-night-in occasion provides an opportunity for retailers to drive sales at a time when shoppers are feeling this squeeze on household spending. Alongside wine and other snacks categories, premium treats, such as luxury ice cream, are frequently added to baskets.”