Good Things in Small Packages

Good Things in Small Packages
by Lynn Petrak
The novelty hasn’t worn off for those looking for
treats that are rewarding, indulgent or better for them.
Maybe it’s because it
reminds people of the thrill they felt when the ice cream truck came down
their street. Perhaps it’s because it is a treat just for them. It
could be the fun shape and size, or the fact that it is as convenient as it
is enjoyable.
To be sure, the single-serving frozen dessert holds a
special place in many Americans’ hearts — and freezers. From
bars to cones to tiny coated pieces, novelties are available in a broad
range of formats and flavors these days to appeal to a customer base that
extends from toddlers to seniors. “It’s a treat for yourself
— every time you have one, it is a reward. And if you think about it,
no one ever complains about ice cream and novelties,” says Suzanne
Ginestro, brand manager for the new Dibs line from Oakland,
Calif.-based Dreyer’s Grand Ice Cream Holdings Inc.
Laura Hindulak, marketing director for Pierre’s
French Ice Cream Co., Cleveland, agrees that the appeal of novelties is
basic. “Novelty treats are fun and exciting, and are equally popular
among consumers of any age,” she says. “They are a great avenue
for providing delicious tasting, portion-controlled treats that are unique
and satisfying.”
Consumers spend more than $2.2 billion a year on
novelties, according to data from Chicago-based Information Resources Inc,
(IRI). The Washington, D.C.-based International Dairy Foods Association
(IDFA) reports that 62 percent of American households purchase novelties on
a yearly basis.
That said, the latest market surveys indicate a slight
melting of sales. Compared to last year’s figures, sales of frozen
novelties for the last 12 months dipped 2.9 percent, with six of the top 10
brands posting declines.
Even with overall sales in the negative territory for
the first time in years, the category isn’t in a total deep freeze,
especially given the increasing diversity of product lines. The burgeoning
youth market, for instance, is spurring all kinds of kid-friendly products.
On opposite ends of the diet spectrum, the growth of better-for-you
novelties and premium and superpremium novelties continues on parallel
tracks (or, perhaps more appropriately, MooseTracks).
| Top 10 Frozen Novelty Brands* |
||||
| $ Sales (in Millions) | % Change vs. Year Ago | Unit Sales (in Millions) | % Change vs. Year Ago | |
| Total Category | $2,202.0 | -2.9% | 756.8 | -3.2% |
| Private Label | 330.1 | -0.1 | 140.7 | -0.3 |
| Nestlé Drumstick | 132.5 | 11.9 | 39.8 | 20.3 |
| Klondike | 126.1 | -2.2 | 42.3 | -4.5 |
| Dreyer’s/Edy’s Whole Fruit | 95.5 | 6.4 | 32.1 | 4.4 |
| Popsicle | 88.7 | -4.5 | 34.2 | -2.3 |
| Weight Watchers Smart Ones | 86.3 | -23.4 | 21.2 | -24.2 |
| Silhouette | 81.1 | -29.7 | 18.2 | -28.9 |
| Häagen-Dazs | 57.9 | 18.3 | 19.3 | 22.8 |
| Klondike Carb Smart | 56.7 | 70.2 | 15.1 | 67.9 |
| Klondike Slim-a-Bear | 49.5 | -4.0 | 15.2 | -2.4 |
| *Total sales in supermarkets, drug stores and mass merchandisers (excluding Wal-Mart) for the52-week period ending May 15, 2005. SOURCE: Information Resources Inc. | ||||
Manufacturers, too, note the sheer growth of frozen
novelties at the retail level bodes well for the category even as it ramps
up competition. “Our novelty business is definitely trending up, and
growth is attributed to line extensions and increased distribution of
national brand novelties,” reports Penny Baker, marketing manager for
Smith Dairy Products Co., Orrville, Ohio, which markets a line of Ruggles novelties.
“Look at the growth of the novelty section in the retail grocery
store. Significant shelf space is dedicated to novelty products.”
Form and Function
On the topic of trends, one of the most notable
evolutions in the category has been the development of new forms of
novelties. Representing the true shape of things to come, so to speak, is
the new Dibs line from Dreyer’s. Launched in May, Dibs are individual
chocolate-coated pieces of ice cream sold in bright-red 60-count
packages for retail and 26-count packages for convenience stores and
concessions. “It basically breaks the mold of traditional ice
cream,” Ginestro says. “It’s a great snack because
everyone in the house will eat it and we have people grazing throughout the
day as well as eating it at night for dessert.”
Ginestro says the line represents an extensive
—and expensive— investment by Dreyer’s to carve out a new
niche within the category. “Dibs is unlike anything we’ve ever
done,” she says, noting that the first concept test was done five
years ago. “In terms of innovation required and capital investment,
we spent more on Dibs than we did on our SlowChurned [light ice
cream] product.”
Now, several weeks after its quiet launch in store
freezers, Dreyer’s has rolled out an extensive marketing campaign to
support the Dibs series, including advertising, public relations and
sampling programs. “There has never been a launch this big in support
with this many marketing dollars,” Ginestro says.
According to Ginestro, the five Dibs varieties have
already received positive buzz and repeat purchases. “Our initial
research showed unbelievable test scores on purchase intent,” she
says. “And the line was out over a month without any awareness
marketing tools, and people started picking it up right away.”
Another example of the less-is-more approach to
novelties is Nestlé Miniwiches, distributed by Dreyer’s. The
recently launched miniature ice cream sandwiches, available in 12-count
packs, feature cookies and cream ice cream wrapped in chocolate cookie
layers.
Beyond size, novelties are breaking out of the
traditional mold in other ways. In the past year, more dessert-inspired
novelties have hit the freezer. Häagen-Dazs, the upscale brand
distributed by Dreyer’s, recently developed a brownie bar, a
chocolate brownie topped with vanilla ice cream and enrobed in Belgian milk
chocolate and walnuts. The Blue Bunny line of novelties from LeMars,
Iowa-based Wells’ Dairy now includes a series of super-indulgent
Ultimate Rewards dessert cups, with ice cream layered with mousses,
sauces and candy toppings. And South Burlington, Vt.-based Ben &
Jerry’s has extended its popular Half Baked flavors from
its hard-pack ice cream line, creating new Half Baked bars featuring
chocolate and vanilla ice cream with fudge brownies and chocolate chip
cookie dough.
Pierre’s also has responded to consumer interest
in indulgent, dessert-style products. Last spring the company introduced
Premium Sundae Cones, with vanilla ice cream in chocolate lined waffle
cones with fudge topping and roasted peanuts, and Moose Tracks® Sundae
Cones with vanilla ice cream, fudge and peanut butter cups. “There
will always be the need for full-fat, indulgent treats for those consumers
who just want to splurge,” Hindulak says.
Getting Better
Reflecting the American palate paradox, the other
notable trend beyond indulgence has been the renewed focus on
better-for-you novelties, from calcium-fortified ice cream desserts for
kids to products with reduced sugar, fat and carbohydrates.
“You are seeing a plethora of frozen snacks
going better-for- you,” Ginestro says, citing new Skinny Cow and
other better-for-you products distributed by Dreyer’s parent
Nestlé. “It’s all about portion control —you
don’t have to worry about how much you are scooping.” Dibs,
too, she says, are appreciated by diet-conscious customers, because of the
products’ built-in portion control.
Several companies have recently beefed up their
better-for-you novelty offerings. Pierre’s has its Slender® No
Sugar Added Reduced Fat Ice Cream products, including sundae cones, bars
and sandwiches. Green Bay, Wis.-based Good Humor-Breyers, which has long
pursued the better-for-you corner of the market, continues to offer new
products, including CarbSmart Almond Bars, CalSmart Cups,
Klondike® Slim-a-Bear Krunch Bars, and No Sugar Added SugarSmart
Ice Cream Bars. Meanwhile, Blue Bunny has combined interest in both
better-for-you and dessert-style treats with its new Sweet Freedom® Vanilla
Sundae Cones.
Smith Dairy has heeded customer clamor for novelties
without the guilt. The company now offers a no-sugar-added fudge pop and a
sugar-free ice pop. According to Baker, the advent of better-for-you
products reflects an ongoing category shift toward diversification.
“One used to think of novelties as being marketed to kids
only,” she says. “But it seems that more items are being
produced for an adult audience —sugar-free, low-carb, and
no-sugar-added are geared more toward the health-conscious
consumer.”
Ginestro says if broad-based appeal is the key to the
continued growth, success is a given. “I think kids love ice cream
snacks because they are fun, but for adults it takes them back to when they
were a kid,” she says. “They have a feeling of nostalgia and
fun.”
Lynn Petrak is a freelance journalist based in the
Chicago area.
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