The market for indulgent, adult ice cream is booming, according to ice cream company Froneri, Europe’s second largest manufacturer of ice cream, which is eyeing opportunities in the space. Operating in more than 20 countries, Froneri is a license partner of Nestlé and Mondelēz and has launched a premium ice cream stick for UK and European markets called Nuii, which their company says “offers a new experience, which we expect our European consumers to love.”
Created using superior and exotic ingredients, Froneri has invested substantially in Nuii’s development and launch, installing new state-of-the-art production facilities. “Part of our strategy is to develop local market successes and roll them out across our other markets,” Froneri CEO Ibrahim Najafi explains.
Phil Griffin, Group Head of Sales at the company, discusses the birth of the company. “When Froneri was first launched, it was a joint venture between Nestlé and R&R Ice Cream which brought together Nestlé’s experience and their capabilities in the ‘out of home’ product space, matched with R&R’s manufacturing and operation knowledge, private label and well-known heritage. We manufacture the majority of our portfolio under license to both Nestlé and Mondelēz, making well-known brands like Oreo, Cadburys and Smarties around the globe.”
According to Griffin, the Nuii ice cream stick was inspired by building on the success of Froneri’s Connoisseur brand in Australia, which is about exploration, travel and exciting ingredients from around the world.
“We thought we’d bring this across to Europe and we tested the product, but the name didn’t resonate well with the different cultures on the continent. We then tested a few ideas and Nuii came out strongly as representing that kind of South Pacific island culture, rainforest, the sea and so on, and that is where the name and inspiration initially came from,” Griffin explains.
In the flavors space, Froneri associated the importance of developing the right type of flavors with the best ingredients, says Griffin. “We sourced good quality ingredients, whether it was Australian macadamia or Nordic berries, for example. Nuii ice cream is very indulgent, there is a lot of chocolate coverage on the ice cream sticks, and it is 100 percent dairy ice cream base, which sets it apart from our competitors.”
Pegged by Innova Market Insights as the top trend for 2019, the “adventurous consumer” is driven by consumers who are well-traveled and are seeking new taste experiences. The adult ice cream category fits well within this trend, notes Griffin.
“There have recently been shifts in food targeted at adults, the indulgent and premium ice cream market over the year has grown to be very premium and sophisticated,” he continues. “There is much more emphasis on more premium positionings, which drives this category in taking advantage of the consumer desire for experiencing something new and exciting.”
On a global level, flavors do change quite significantly and there are often substantial differences in different markets, for example in Latin America compared to Europe. Within Europe, traditionally British and French consumers tend to prefer caramel and chocolate-based ice cream, whereas if you go further to the east, fruit and nuts play a more significant role in product development, he adds.
Griffin also notes that Froneri has access and knowledge to all of the dominant trends across the globe. “The indulgent premium space has gone from strength to strength, we are also seeing a bigger demand for water-based lollies, especially around the summer months.”
The key trends that Fronteri is monitoring is plant-based and veganism. “We certainly feel there are opportunities in this space, but we know the importance of delivering on taste, which can be challenging without the use of dairy. One thing we do know for sure, however, is that consumers don’t want to compromise on taste,” he explains.
Furthermore, snacking and portion control are also vital dominators in today’s markets, says Griffin. “We have been working with Mondelēz in that area, particularly for the growth of Oreo globally. In the western world, ice cream is already quite a premium fixture; it’s often associated with indulgence and we now have opportunities to expand our geographical footprint even further.”
Froneri is working on getting its brands in different parts of the world. Griffin says that “the demand is there, sometimes it’s just a case of being able to get the product to them.” He firmly believes there are still a multitude of opportunities for Froneri.
“Ice cream has been a very dynamic category the past couple of years and we think it will continue to grow in the foreseeable future,” he adds.
Innovating and being concise on consumer feedback around health and wellness trends is a top priority for Froneri, and Griffin also says “it’s an interesting category to work and be involved in.”
Although, there may still be room for further scope and NPD, developing new flavors and textures can open the door to even more opportunities in ice cream. The need for clean(er) ingredients is also pushing development in the business, as Froneri keeps one eye on the trend curve.
“At the moment, consumers and companies alike, are very focused on packaging and what the future holds for packaging; it’s a very dynamic space, so we are keeping ahead of the trends and developing our business in the right way,” he says.
Somewhat surprisingly, sugar reduction and calorie control also cross over into ice cream, according to Griffin, who says the company set the target that their products do not contain over 250 calories for an adult portion and 125 calories for children’s products.
“Also, we don’t have any artificial colorings or flavors in any of our European products, or products aimed at children, and we work closely with brand owners and retailers in our private label portfolio – they challenge us to ensure we are giving our customers the best quality products that they expect.”
Griffin also says that Froneri has been involved in a sugar reduction program, which, over the last three to four years has been making progress in the ice cream space. “We have been reducing our sugar content globally, although ice cream is an occasional treat, we are still conscious that it does have a high sugar content. We want our customers to manage this sensibly, and enjoy ice cream as part of a controlled diet. We can promise that we'll play our role in the education of healthy and balanced eating,” he concludes.
