Ice Cream and Frozen Desserts in the U.S,: Markets and Opportunities in Retail and Foodservice; 7th Edition

Chapter 1: Executive Summary

Introduction

Scope of Report: Foodservice and Retail

Excluded Products

Product Types

Product Categories

Report Methodology

Market Trends

Sales Top $25.1 Billion in 2011

Foodservice Is the Larger Channel

Packaged Ice Cream Dominates Mass-Market Sales

Figure 1-1: Share of Total U.S. Dollar Sales of Ice Cream and Frozen Desserts: Foodservice vs. Retail, 2007 vs. 2011 (percent)

Sales Will Top $28.6 Billion by 2016

Competitive Trends

A Highly Competitive Marketplace

Foodservice Marketers

Co-Packing and Ice Cream Mixes

Recent Mergers and Acquisitions

Top 12 Marketers Account for 70% of Mass-Market Ice Cream and Frozen Dessert Sales

The Big Two: Nestlé and Unilever

Dreyer’s/Edy’s the Most Popular Brand

Foodservice Outlets

Figure 1-2: Estimated Share of U.S. Foodservice Dollar Sales of Ice Cream and Frozen Desserts: By Channel, 2012 (percent)

New Product Trends

Pace of Retail New Product Introductions Slows

Private Label Introductions Soar

Major Launches

Unilever Brings Magnum to the U.S.A.

Illustration 1-1: Magnum Ice Cream Bars

Burger King’s New Menu Features Soft-Serve Desserts

Illustration 1-2: Burger King’s New Soft-Serve Desserts

TCBY Launches Retail Line of Packaged Frozen Yogurt

Nestlé Dreyer’s Quietly Introduces Superpremium Wonka Brand

Illustration 1-3: Wonka Superpremium Ice Cream

Consumer Trends

Three Out of Four Americans Eat Ice Cream/ Frozen Desserts; Frequency Increases in Warm Weather

Table 1-1: Frequency of Eating Ice Cream and Frozen Desserts by Warm Weather vs. Cold Weather, March 2012 (U.S. adults)

Two Out of Three Households Use Regular Ice Cream Most Often

Household Use by Product Type by Age Group

Household Use by Product Type by Ethnic Group

Regional Preferences for Different Frozen Dessert Products

Household Use by Product Type by Presence of Children

Four-Year Trend by Types of Ice Cream and Frozen Desserts Purchased

Chapter 2: Market Overview

Introduction

Scope of Report: Foodservice and Retail

Excluded Products

Report Methodology

Product Breakouts

Product Types

Product Categories

Product Classifications

Code of Federal Regulation Provides Legal Descriptions

Table 2-1: Frozen Dessert Product Definitions

Quality Grades

Components Affecting Quality Classifications

Fat Content

Overrun

Flavors

Sweeteners

Fillers

Mouthfeel

Mix-Ins

Quality Classifications

Economy

Regular

Premium

Superpremium

Table 2-2: Ice Cream Quality Classification Characteristics

Packaged vs. Bulk

Hard-Frozen vs. Soft-Serve

Table 2-3: Hard-Frozen vs. Soft-Serve Frozen Dessert Production 2000-2008 (in millions of gallons)

Multi-Serve versus Single-Serve

Packages Point Up Quality Distinctions

Types of Milk

Market Size and Growth

2011 Sales Top $25.1 Billion

Table 2-4: Total U.S. Sales of Ice Cream and Frozen Desserts, 2007-2011 (in millions of dollars)

Foodservice Sales Top $14.3 Billion

Table 2-5: U.S. Sales of Ice Cream & Frozen Desserts Through Foodservice Channels, 2007-2011 (in millions of dollars)

Retail Sales Approach $10.8 Billion

Table 2-6: U.S. Sales of Ice Cream and Frozen Desserts Through Retail Channels, 2007-2011 (in millions of dollars)

U.S. Production of Ice Cream and Frozen Desserts

Table 2-7: U.S. Ice Cream and Frozen Dessert Production, 2006-2010 (in millions of gallons)

Per Capita Consumption Declines

Table 2-8: U.S. Per Capita Consumption of Ice Cream and Frozen Desserts, 2005, 2008, 2009 (in pounds)

Market Composition

Foodservice Is the Larger Channel

Figure 2-1: Share of Total U.S. Dollar Sales of Ice Cream and Frozen Desserts: Foodservice vs. Retail, 2007 vs. 2011 (percent)

Packaged Ice Cream Dominates Retail Mass-Market Sales

Table 2-9: SymphonyIRI-Tracked Sales and Share of Ice Cream and Frozen Desserts by Category, YE February 2012 (in millions of dollars)

Private Label 22% of Retail Mass-Market Ice Cream and Frozen Dessert Sales

Favorite Flavors

Seasonality

Market Outlook

A Mature Market

The Economy and Its Impact on Ice Cream

Ice Cream and Frozen Desserts an Affordable Luxury

Costs Volatile

Ice Cream Prices

Figure 2-2: Consumer Price Index: Retail Ice Cream Prices, 2007-2012 (prices in dollars)

Industry Is Consolidating…

… But Some Growth Is Taking Place

Technological Advances

Industry Moving Toward Premium Formulations

Consumers Doing More Snacking

Competition from Other Desserts and Snacks

Table 2-10: SymphonyIRI-Tracked Sales and Share of Dessert and Snack Categories Through Mass-Market Channels, YE February 2012 (in millions of dollars)

Single-Serve Products Growing

Addressing Health and Nutrition Concerns

Is Ice Cream Addictive?

Retail Deals

Foodservice Deals

Foodservice Expansion

Retail Expansion

U.S. Population Growing Older and More Diverse

Table 2-11: Demographic Snapshot of the U.S. Population

Hispanic Marketing Opportunities

Table 2-12: Ice Cream and Frozen Dessert Products and Brands with High Indexes Among Hispanic Consumers, 2011 (U.S. adults)

African-American Marketing Opportunities

Asian-American Marketing Opportunities

Table 2-13: Ice Cream and Frozen Dessert Products and Brands with High Indexes Among African-American Consumers, 2011 (U.S. adults)

Table 2-14: Ice Cream and Frozen Dessert Products and Brands with High Indexes Among Asian-American Consumers, 2011 (U.S. adults)

Projected Market Growth

Ice Cream and Frozen Dessert Sales Will Top $28.6 Billion by 2016

Table 2-15: Projected Total U.S. Sales of Ice Cream and Frozen Desserts, 2011-2016 (in millions of dollars)

Foodservice Sales Will Grow Slowly to $15.8 Billion in 2016

Retail Sales Will Reach $12.9 Billion by 2016

Table 2-16: Projected U.S. Sales of Ice Cream and Frozen Desserts Through Foodservice Channels, 2011-2016 (in millions of dollars)

Table 2-17: Projected U.S. Sales of Ice Cream and Frozen Desserts Through Retail Channels, 2011-2016 (in millions of dollars)

Chapter 3: The Marketers

Marketer Overview

A Highly Competitive Marketplace

Foodservice Marketers

Co-Packing and Ice Cream Mixes

Recent Mergers and Acquisitions

Four Growth Paths: Acquisitions, Innovation, Expansion, Focus

The Acquisition Track

The Innovation Track

The Expansion Track

The Focus Track

Entering the Ice Cream and Frozen Desserts Market

Retail Marketer and Brand Share

Methodology

Top 12 Marketers Account for 70% of Mass-Market Ice Cream and Frozen Dessert Sales

The Big Two: Nestlé and Unilever

Dreyer’s/Edy’s the Most Popular Brand

Figure 3-1: U.S. Retail Sales of Ice Cream and Frozen Desserts: Top Brands by Dollar Share, YE February 2012 (percent)

Nestlé Dreyer’s Leads Ice Cream Category with 21% Share

Dreyer’s/Edy’s and Breyers Top Packaged Ice Cream Brands

Figure 3-2: U.S. Retail Sales of Packaged Ice Cream: Top Brands by Dollar Share, YE February 2012 (percent)

Nestlé Dreyer’s Commands Strong Lead in Frozen Novelties with 31% Share

Dreyer’s/Edy’s, Klondike, and Nestlé Drumstick the Best- Selling Novelties

Figure 3-3: U.S. Retail Sales of Frozen Novelties: Top Brands by Dollar Share, YE February 2012 (percent)

Nestlé Dreyer’s Also Leads Frozen Yogurt/Tofu

Rich Products Dominates Ice Cream Desserts with 70% Share

Private Label Leads Sherbet/Sorbet/Ices with 42% Share

Jel Sert Leads Tiny Ice Pop Novelties Category with 38% Share

Table 3-1: Top Marketers of Ice Cream and Frozen Desserts by SymphonyIRI-Tracked Sales and Share, YE Februar, 011 vs. YE February 2012 (in millions of dollars)

Table 3-2: Top Marketers of Packaged Ice Cream by SymphonyIRI-Tracked Sales and Share, YE February 2011 vs. YE February 2012 (in millions of dollars)

Table 3-3: Top Marketers of Frozen Novelties by SymphonyIRI-Tracked Sales and Share, YE February 2011 vs. YE February 2012 (in millions of dollars)

Table 3-4: Top Marketers of Frozen Yogurt/Tofu by SymphonyIRI-Tracked Sales and Share, YE February 2011 vs. YE February 2012 (in millions of dollars)

Table 3-5: Top Marketers of Ice Cream Desserts by SymphonyIRI-Tracked Sales and Share, YE February 2011 vs. YE February 2012 (in millions of dollars)

Table 3-6: Top Marketers of Sherbet/Sorbet/Ices by SymphonyIRI-Tracked Sales and Share, YE February 2011 vs. YE February 2012 (in millions of dollars)

Table 3-7: Top Marketers of Ice Pop Novelties by SymphonyIRI-Tracked Sales and Share, YE February 2011 vs. YE February 2012 (in millions of dollars)

Competitor Profiles

Nestlé Dreyer’s Ice Cream Co.

Dreyer’s/Edy’s, the Nation’s Leading Premium Brand

Häagen-Dazs, the First Superpremium Ice Cream

Nestlé Brand Novelties

Skinny Cow for Low-Calorie Indulgence

Unilever: The World Leader

Breyers, an American Classic

Ben & Jerry’s, the Iconoclastic Superpremium Brand

Klondike

Unilever Rolls Out Magnum in U.S.

Popsicle: Invented by a Kid, Targets Kids

Good Humor: Ice Cream on a Stick

Unilever’s Environment-Friendly Programs

Other Large National Players

Wells Enterprises Has a Growing National Presence

Dean Foods Reorganizes for Growth

The Major Regionals: Looking Beyond the Horizon

Blue Bell Creameries the No. 4 Marketer, No. 3 Ice Cream Brand

Friendly’s Ice Cream, Now in a Store Near You

H.P. Hood: The New England Superregional

Kemps Now Part of Dairy Foods of America

Prairie Farms Dairy: A Farmer-Owned Cooperative

Turkey Hill Dairy: A Mid-Atlantic Favorite

Other Noteworthy Regionals

Graeter’s: A Cincinnati Icon

Hudsonville Creamery & Ice Cream

Perry’s Ice Cream Co.

Pierre’s Ice Cream Co.

Schoep’s Ice Cream, a Wisconsin Brand and Co-Packer

Smith Dairy: Christianity Is Part of the Mission

Tillamook County Creamery Association: It’s More than Cheese

Niche Marketers

Ciao Bella Gelato Co. Expands to Retail

Denali Flavors Licenses its Flavors and Recipes

J&J Snack Foods Corp. with Ices and Frozen Juice Bars

Jel Sert Co., the Leader in Freeze-at-Home Pops

Lovin’ Scoopful: A New Player with a Charitable Mission

Mars Chocolate North America

Oregon Ice Cream Co., a Marketer and Co-Packer

Rich Products Corp. the Leading Marketer of Ice Cream Cakes

Talenti Gelato e Sorbetto, the Nation’s Best-Selling Gelato

Turtle Mountain: A Leader in Dairy-Free Frozen Desserts

Chapter 4: New Product Trends

Pace of Retail New Product Introductions Slows

Table 4-1: Ice Cream & Frozen Dessert New Product Introductions by Category, 2010 vs. 2011 (number)

Private Label Introductions Soar

Major Launches

Unilever Brings Magnum to the U.S.A.

Illustration 4-1: Magnum Ice Cream Bars

Burger King’s New Menu Features Soft-Serve Desserts

Illustration 4-2: Burger King’s New Soft-Serve Desserts

TCBY Launches Retail Line of Packaged Frozen Yogurt

Illustration 4-3: TCBY’s Packaged Frozen Yogurt for Retail Channels

Nestlé Dreyer’s Quietly Introduces Superpremium Wonka Brand

Illustration 4-4: Wonka Superpremium Ice Cream

Small Portions and Bite-Size Treats

Illustration 4-5: Blue Bunny Champ! Mini Swirls Cones

Illustration 4-6: Blue Bunny Mini Ice Cream Sandwiches

Illustration 4-7: Blue Bunny Sweet Freedom Snack Size Cones

Illustration 4-8: Blue Bunny Sweet Freedom Snack Size Sandwiches

Illustration 4-9: Häagen-Dazs Snack Size Sundae Cones

Illustration 4-10: Culver’s Mini Concrete Mixers

Illustration 4-11: Baskin-Robbins Mini Cones

Illustration 4-12: Culver’s Mini Concrete Mixers

Illustration 4-13: Baskin-Robbins Mini Cones

Illustration 4-14: Baskin-Robbins Valentine’s Day Cake Bites

Illustration 4-15: Carvel Carvelite Lil’ Flying Saucers

Trends That Never End

Line Extensions

Illustration 4-16: Yosicle Torpedo! Ice Pop

Illustration 4-17: Klondike Mint Chocolate Chip Bar

Illustration 4-18: Klondike What The Fudge! Brownie

Illustration 4-19: Klondike Choco Taco 4-Pack

Illustration 4-20: Dove Chocolate Dulce de Leche

Illustration 4-21: Dove Bar Mint Swirl with Dark Chocolate

Illustration 4-22: Mars Twix Peanut Butter Ice Cream

Illustration 4-23: Mars Milky Way Minis Chocolate Ice Cream Bars

Illustration 4-24: Blue Bell Butter Crunch Bars

Illustration 4-25: Nestlé Drumstick Sprinkled! Cone

Illustration 4-26: Blue Bell Rocky Mountain Road

Illustration 4-27: Ben & Jerry’s Chocolate Therapy

Illustration 4-28: Baskin-Robbins Toffee Pecan Crunch

Illustration 4-29: Velvet Honey Caramel

Illustration 4-30: Blue Bunny Personals Birthday Party

Illustration 4-31: Mikawaya Mochi Ice Cream

Limited Editions

Illustration 4-32: Häagen-Dazs 2011 Limited Edition Flavors

Illustration 4-33: Häagen-Dazs 2012 Limited Edition Flavors

Illustration 4-34: Häagen-Dazs Raspberry & Vanilla Ice Cream Bars

Sports Tie-Ins

Illustration 4-35: Turkey Hill Blitzburgh Crunch

Illustration 4-36: Mayfield Triple Play Ice Cream

Entertainment Tie-Ins

Illustration 4-37: Ben & Jerry’s Late Night Snack

Illustration 4-38: Ben & Jerry’s Schweddy Balls

Illustration 4-39: Breyers Blasts!

Illustration 4-40: Popsicle Jolly Rancher Awesome Twosome Pops

Illustration 4-41: Popsicle Airheads Pops

Illustration 4-42: Peeps Marshmallow Flavored Freezer Pops

Illustration 4-43: Carvel Cookie Trio Sundae Dashers

Illustration 4-44: Blue Bunny Cadbury Ice Cream Bars

Illustration 4-45: Lifeway ProBugs Frozen Kefir Pops

Healthier Than Ever

All-Natural

Illustration 4-46: Safeway Open Nature

Illustration 4-47: Blue Bunny Naturally

Reduced Calorie

Illustration 4-48: Skinny Cow Single-Serve Cups

Illustration 4-49: Arctic Zero Bars

Illustration 4-50: Weight Watchers Smart Ones Peanut Butter Cup Sundae

Illustration 4-51: Weight Watchers Ice Cream Bars

Sugar-Free

Illustration 4-52: iSkream Stevia-Sweetened Ice Cream

Illustration 4-53: Clemmy’s Sugar-Free Ice Cream Bars

Artisan Ice Cream

Illustration 4-54: Delicieuse Lavender Ice Cream

Illustration 4-55: Naia Bar Gelato

Illustration 4-56: Grom Gelato

Illustration 4-57: High Road Craft ice Cream & Sorbet

Illustration 4-58: Jeni’s Splendid ice Creams

Illustration 4-59: Van Leeuwen Artisan Ice Cream

Cutting Edge or Out There?

Alcohol

Illustration 4-60: Häagen-Dazs Blackberry Cabernet Sorbet

Illustration 4-61: Cold Stone Creamery Mojito Sorbet

Illustration 4-62: Gelateria Naia St. George Whiskey Gelato Bar

Illustration 4-63: Island ROX Sorbet Mixers

Illustration 4-64: SnöBar Alcoholic Ice Cream

Illustration 4-65: The Greene Turtle’s Irish Float “Stuffed Beer”

Bacon Overload?

Illustration 4-66: Denny’s Maple Bacon Sundae

Illustration 4-67: Jack in the Box Bacon Shake

Herbs

Illustration 4-68: Cold Stone Creamery Strawberry Basil Sorbet

Illustration 4-69: Häagen-Dazs U.K. Mint Leaves & Chocolate Ice Cream

Salt

Illustration 4-70: Turkey Hill Salty Caramel

Illustration 4-71: Baskin-Robbins 3-Point Chocolate Flavor

Sweet-and-Sour Flavors

Illustration 4-72: Perry’s Sour Buddie Bars

Illustration 4-73: Baskin-Robbins Limited Edition Picnic Punch

Illustration 4-74: Popsicle Sour Patch Kids

Flavors That Follow Bakery Trends

Illustration 4-75: Ben & Jerry’s Red Velvet Cake

Illustration 4-76: TCBY Red Velvet Cake Soft-Serve Frozen Yogurt

Illustration 4-77: Safeway Select Red Velvet Cake Ice Cream

Illustration 4-78: Turkey Hill Whoopie Pie Ice Cream

Illustration 4-79: Tillamook Sticky Bun Ice Cream

Illustration 4-80: Blue Bunny Chef Duff Ice Creams

Illustration 4-81: Ciao Bella Gelato Belgian Chocolate S’Mores

Illustration 4-82: Cold Stone Creamery Hot for Cookie Hot Stone Plated Dessert

Illustration 4-83: Carl’s Jr. Oreo Ice Cream Sandwich

Illustration 4-84: Friendly’s Ice Cream Pizza

Waffles

Illustration 4-85: Outback Steakhouse Oreo Cookies ‘N Cream Waffles

Illustration 4-86: Marble Slab Creamery Waffle Bowl Sundaes

Frozen Yogurt Boosting Nutritional Benefits

Illustration 4-87: G.S. Gelato Yogurtiamo

Illustration 4-88: TCBY Super Fro-Yo

Illustration 4-89: Jamba Juice Whirl’ns Frozen Yogurt

Illustration 4-90: Cold Stone Creamery Frozen Yogurt

Illustration 4-91: YoCream Activia Frozen Yogurt

Illustration 4-92: Jala Frozen Yogurt and Chocolate Fudge Bars

Illustration 4-93: Stonyfield Farm Gotta Have Vanilla Frozen Yogurt Bars

Illustration 4-94: Lifeway Frozen Kefir

Illustration 4-95: Red Mango’s Classic Sweet Flavors

It’s Greek for Me

Illustration 4-96: Yasso Frozen Greek Yogurt Bars

Illustration 4-97: Stonyfield Oikos Greek Frozen Yogurt

Illustration 4-98: Ruggles Greek Frozen Yogurt

Illustration 4-99: Adonia Greek Frozen Yogurt

Illustration 4-100: Ben & Jerry’s Greek Frozen Yogurt

Illustration 4-101: Rite Aid’s Thrifty Greek-Style Frozen Yogurt

Illustration 4-102: Lifeway Greek Style Fro-Yo

Illustration 4-103: TCBY Greek Frozen Yogurt

Non-Dairy Ice Cream Alternatives

Illustration 4-104: So Delicious Almond Milk Frozen Novelties

Illustration 4-105: Luna & Larry’s Coconut Bliss

Illustration 4-106: Julie’s Non-Dairy Coconut Dessert

Shakes and Smoothies

Illustration 4-107: Dreyer’s Slow Churned Shakes and Smoothies

Illustration 4-108: Cold Stone Creamery Shake Them Berries Frozen Yogurt Shake

Illustration 4-109: Skinny Cow Shake-Stirs

Ice Pops

Illustration 4-110: Sunkist Freezer Bars

Pursuing the Hispanic Consumer

Illustration 4-111: Fruitfull Mamey-Sapote-Lucuma Frozen Fruit Bars

Niche Products

Illustration 4-112: Bang!! Caffeinated Ice Cream

Illustration 4-113: Chozen Matzoh Crunch Ice Cream

Illustration 4-114: Living Harvest Tempt Bars

Illustration 4-115: Pierre’s Lactose Free Ice Cream

Illustration 4-116: Cloud 9 Snow Ice

Foreign Innovations

Illustration 4-117: Europe and Singapore: Häagen-Dazs Secret Sensations

Illustration 4-118: Japan: Häagen-Dazs Crêpe Glacé

Illustration 4-119: Heston from Waitrose Ice Cream

Illustration 4-120: Picard Beet-Balsamic Vinegar Sorbet

Illustration 4-121: Wall’s Haribo Push Up Pop

Looking to the Future

Fun with Made-to-Order Liquid Nitrogen Ice Cream

MooBella’s Make-Your-Own Ice Cream Vending Machine

Illustration 4-122: MooBella Make-Your-Own Ice Cream Vending Machine

Chapter 5: Foodservice and Retail Trends

Distribution Methods

Distribution to Large Foodservice Chains

Advantages of DSD

Downside of DSD

Distribution Is Second Highest Cost Next to Production

The Role of Food Brokers

Foodservice Overview

Types of Foodservice Outlets

Number of Foodservice Outlets

Restaurant Industry Sales Reach New Record

Table 5-1: Restaurant Industry Sales: 2008-2012 (in billions of dollars)

Despite Proliferation of Chains, Small Businesses Predominate

Determining Market Size and Share Is Challenging

Scoop Shops Lead in Share of Sales

Figure 5-1: Estimated Share of U.S. Foodservice Dollar Sales of Ice Cream and Frozen Desserts: By Channel, 2012 (percent)

Scoop Shops

Larger Chains Are Franchises

Table 5-2: Major Ice Cream and Frozen Desserts Chains, 2011

Co-Branding Helps Build Day-Parts and Year-Round Business

Self-Serve on the Rise in Foodservice

Mexican-Style Ice Cream Parlors

American Chains Abroad

Mobile Ice Cream and Frozen Dessert Venues

Kiosks Make Ice Cream and Frozen Desserts Available Anywhere

Food Carts and Concession Trailers

Food Trucks

Increasing Limitations on Street Vendors

Mobile Locations Used to Promote and Launch Products

Ice Cream and Frozen Desserts Reflect Restaurants’ Standing

Burger King Debuts New Soft-Serve Frozen Dessert menu

Competitor Profiles

Leading Ice Cream Chains

Baskin-Robbins

Ben & Jerry’s

Braum’s Ice Cream and Dairy Stores

Carvel

Cold Stone Creamery

Dairy Queen

Friendly’s Ice Cream Is Slimmer

Häagen-Dazs Shoppes

Marble Slab Creamery Unites with MaggieMoo’s Ice Cream & Treatery

Major Frozen Yogurt Chains

Golden Spoon

Pinkberry

Red Mango

TCBY

Yogurtland

Leading Chains in Frozen Custard, Italian Ice and Other Categories

Frozen Custard: Culver’s

Italian Ice: Rita’s

Ice Cream Beads: Dippin’ Dots

Diet Specialist: Tasti D-Lite

Retail Overview

Types of Retail Outlets

Traditional Supermarkets Lead

Figure 5-2: Estimated Share of U.S. Retail Dollar Sales of Ice Cream and Frozen Desserts: By Channel, 2012 (percent)

Supermarkets Lead the Retail Market

Mass Merchandisers and Supercenters

Convenience Stores

Warehouse Clubs

Health and Natural Food Stores

Drugstores

Dollar Stores

Vending Machines

Internet and Mail Order

Chapter 1: Executive Summary

Introduction

Scope of Report: Foodservice and Retail

Excluded Products

Product Types

Product Categories

Report Methodology

Market Trends

Sales Top $25.1 Billion in 2011

Foodservice Is the Larger Channel

Packaged Ice Cream Dominates Mass-Market Sales

Figure 1-1: Share of Total U.S. Dollar Sales of Ice Cream and Frozen Desserts: Foodservice vs. Retail, 2007 vs. 2011 (percent)

Sales Will Top $28.6 Billion by 2016

Competitive Trends

A Highly Competitive Marketplace

Foodservice Marketers

Co-Packing and Ice Cream Mixes

Recent Mergers and Acquisitions

Top 12 Marketers Account for 70% of Mass-Market Ice Cream and Frozen Dessert Sales

The Big Two: Nestlé and Unilever

Dreyer’s/Edy’s the Most Popular Brand

Foodservice Outlets

Figure 1-2: Estimated Share of U.S. Foodservice Dollar Sales of Ice Cream and Frozen Desserts: By Channel, 2012 (percent)

New Product Trends

Pace of Retail New Product Introductions Slows

Private Label Introductions Soar

Major Launches

Unilever Brings Magnum to the U.S.A.

Illustration 1-1: Magnum Ice Cream Bars

Burger King’s New Menu Features Soft-Serve Desserts

Illustration 1-2: Burger King’s New Soft-Serve Desserts

TCBY Launches Retail Line of Packaged Frozen Yogurt

Nestlé Dreyer’s Quietly Introduces Superpremium Wonka Brand

Illustration 1-3: Wonka Superpremium Ice Cream

Consumer Trends

Three Out of Four Americans Eat Ice Cream/ Frozen Desserts; Frequency Increases in Warm Weather

Table 1-1: Frequency of Eating Ice Cream and Frozen Desserts by Warm Weather vs. Cold Weather, March 2012 (U.S. adults)

Two Out of Three Households Use Regular Ice Cream Most Often

Household Use by Product Type by Age Group

Household Use by Product Type by Ethnic Group

Regional Preferences for Different Frozen Dessert Products

Household Use by Product Type by Presence of Children

Four-Year Trend by Types of Ice Cream and Frozen Desserts Purchased

Chapter 2: Market Overview

Introduction

Scope of Report: Foodservice and Retail

Excluded Products

Report Methodology

Product Breakouts

Product Types

Product Categories

Product Classifications

Code of Federal Regulation Provides Legal Descriptions

Table 2-1: Frozen Dessert Product Definitions

Quality Grades

Components Affecting Quality Classifications

Fat Content

Overrun

Flavors

Sweeteners

Fillers

Mouthfeel

Mix-Ins

Quality Classifications

Economy

Regular

Premium

Superpremium

Table 2-2: Ice Cream Quality Classification Characteristics

Packaged vs. Bulk

Hard-Frozen vs. Soft-Serve

Table 2-3: Hard-Frozen vs. Soft-Serve Frozen Dessert Production 2000-2008 (in millions of gallons)

Multi-Serve versus Single-Serve

Packages Point Up Quality Distinctions

Types of Milk

Market Size and Growth

2011 Sales Top $25.1 Billion

Table 2-4: Total U.S. Sales of Ice Cream and Frozen Desserts, 2007-2011 (in millions of dollars)

Foodservice Sales Top $14.3 Billion

Table 2-5: U.S. Sales of Ice Cream & Frozen Desserts Through Foodservice Channels, 2007-2011 (in millions of dollars)

Retail Sales Approach $10.8 Billion

Table 2-6: U.S. Sales of Ice Cream and Frozen Desserts Through Retail Channels, 2007-2011 (in millions of dollars)

U.S. Production of Ice Cream and Frozen Desserts

Table 2-7: U.S. Ice Cream and Frozen Dessert Production, 2006-2010 (in millions of gallons)

Per Capita Consumption Declines

Table 2-8: U.S. Per Capita Consumption of Ice Cream and Frozen Desserts, 2005, 2008, 2009 (in pounds)

Market Composition

Foodservice Is the Larger Channel

Figure 2-1: Share of Total U.S. Dollar Sales of Ice Cream and Frozen Desserts: Foodservice vs. Retail, 2007 vs. 2011 (percent)

Packaged Ice Cream Dominates Retail Mass-Market Sales

Table 2-9: SymphonyIRI-Tracked Sales and Share of Ice Cream and Frozen Desserts by Category, YE February 2012 (in millions of dollars)

Private Label 22% of Retail Mass-Market Ice Cream and Frozen Dessert Sales

Favorite Flavors

Seasonality

Market Outlook

A Mature Market

The Economy and Its Impact on Ice Cream

Ice Cream and Frozen Desserts an Affordable Luxury

Costs Volatile

Ice Cream Prices

Figure 2-2: Consumer Price Index: Retail Ice Cream Prices, 2007-2012 (prices in dollars)

Industry Is Consolidating…

… But Some Growth Is Taking Place

Technological Advances

Industry Moving Toward Premium Formulations

Consumers Doing More Snacking

Competition from Other Desserts and Snacks

Table 2-10: SymphonyIRI-Tracked Sales and Share of Dessert and Snack Categories Through Mass-Market Channels, YE February 2012 (in millions of dollars)

Single-Serve Products Growing

Addressing Health and Nutrition Concerns

Is Ice Cream Addictive?

Retail Deals

Foodservice Deals

Foodservice Expansion

Retail Expansion

U.S. Population Growing Older and More Diverse

Table 2-11: Demographic Snapshot of the U.S. Population

Hispanic Marketing Opportunities

Table 2-12: Ice Cream and Frozen Dessert Products and Brands with High Indexes Among Hispanic Consumers, 2011 (U.S. adults)

African-American Marketing Opportunities

Asian-American Marketing Opportunities

Table 2-13: Ice Cream and Frozen Dessert Products and Brands with High Indexes Among African-American Consumers, 2011 (U.S. adults)

Table 2-14: Ice Cream and Frozen Dessert Products and Brands with High Indexes Among Asian-American Consumers, 2011 (U.S. adults)

Projected Market Growth

Ice Cream and Frozen Dessert Sales Will Top $28.6 Billion by 2016

Table 2-15: Projected Total U.S. Sales of Ice Cream and Frozen Desserts, 2011-2016 (in millions of dollars)

Foodservice Sales Will Grow Slowly to $15.8 Billion in 2016

Retail Sales Will Reach $12.9 Billion by 2016

Table 2-16: Projected U.S. Sales of Ice Cream and Frozen Desserts Through Foodservice Channels, 2011-2016 (in millions of dollars)

Table 2-17: Projected U.S. Sales of Ice Cream and Frozen Desserts Through Retail Channels, 2011-2016 (in millions of dollars)

Chapter 3: The Marketers

Marketer Overview

A Highly Competitive Marketplace

Foodservice Marketers

Co-Packing and Ice Cream Mixes

Recent Mergers and Acquisitions

Four Growth Paths: Acquisitions, Innovation, Expansion, Focus

The Acquisition Track

The Innovation Track

The Expansion Track

The Focus Track

Entering the Ice Cream and Frozen Desserts Market

Retail Marketer and Brand Share

Methodology

Top 12 Marketers Account for 70% of Mass-Market Ice Cream and Frozen Dessert Sales

The Big Two: Nestlé and Unilever

Dreyer’s/Edy’s the Most Popular Brand

Figure 3-1: U.S. Retail Sales of Ice Cream and Frozen Desserts: Top Brands by Dol

Ice Cream in United States

United States Ice Cream Production, Tonnes

• $ 250
• Industry data
• January 2013

Yearly, From 1999 To 2017
By Business Monitor International
Source: UN Industrial Commodity Statistics Database

• Industries : Frozen Food
• Countries : United States

United States Ice Cream Production, Tonnes, % Change Y-o-y

• $ 250
• Industry data
• January 2013

Yearly, From 2000 To 2017
By Business Monitor International
Source: UN Industrial Commodity Statistics Database

• Industries : Frozen Food
• Countries : United States