Summer ice cream marketing—how brands are handling Ozempic, rising prices and and other threats

While summer is a prime time for ice cream brands, higher ingredient costs and price-sensitive consumers pose a marketing challenge this season. And conditions could get worse in coming years with GLP-1 weight-loss drugs altering consumption habits. To stay relevant, analysts predict that there will be a “premiumization” of ice cream brands that lean into better-quality ingredients and nostalgic flavors to compete with cheaper private-label offerings. They also expect a rise in smaller portion sizes for GLP-1 users who don’t want to give up the taste of ice cream. “Maybe there are not enough people to impact sales now, but there will be,” Leigh O’Donnell, VP and head of shopper and category insights at Kantar, said about the effect of weight-loss drugs such as Ozempic. Check out the latest Ad Age events and award programs Indeed, a Morgan Stanley survey suggested that ice cream consumption will fall 5.3% in the next 10 years. Brands are already adapting—Nestlé recently announced that it will roll out a new frozen foods line called Vital Pursuit later this year that caters to GLP-1 users with smaller portion meals that are packed with nutrients aimed at people who are eating less volume. Although the line will not include ice cream, the move signifies changing market conditions that have already led some ice cream brands to make smaller size formats. Changes are also on the horizon for one of the biggest ice cream marketers. Unliver in March announced plans to spin off, or potentially sell, its ice cream business, which includes Ben & Jerry’s, Magnum, Breyers, Talenti and Popsicle. Unilever reported just 2.3% underlying sales growth for ice cream in 2023, which trailed its other divisions, including beauty and wellbeing (8.3%), personal care (8.9%), home care (5.9%) and nutrition (7.7%). Unilever cited higher prices that led consumers to trade down to value brands, noting that ice cream had a “disappointing year with declining market share and profitability.” Below, a closer look at ice cream trends, including summer marketing plans for Tillamook, Jeni’s, Häagen-Dazs and Blue Bell. Premium vs private label While store-owned private label brands have become more popular as grocery prices rise and consumers trade down to less expensive goods, many brands are opting to keep using premium ingredients and lean into indulgence. Market research firm Mintel noted in a recent report that brands can differentiate themselves by touting higher quality. “Private labels can’t be ignored, but we understand those buyers to be different customers,” said Kate Boltin, VP of marketing for Tillamook. “We try to make sure we are offering something premium at an affordable price, but we know that won’t catch everyone.” Tillamook, which is controlled by the farmer-owned cooperative Tillamook County Creamery Association, is touting its quality with a Leo Burnett campaign launched in March called “Extraordinary Dairy” that attempts to separate the brand from what it describes as “mediocre dairy” competitors. “Twelve years ago we were more of a West Coast brand and we have set out to be national,” Boltin said. “But when we compare coasts, there are a lot more folks in the East who don’t know us. We wanted to communicate our range of quality products to someone meeting us for the first time.” Private labels are hitting back. In late April, Walmart announced Bettergoods, a line designed to be a step above its longstanding Great Value private label brand. Bettergoods ice cream is off to a solid start—Numerator found that 78% of first-time Bettergoods ice cream buyers plan to buy it again. Smaller sizes As ice cream brands vie for consumers in the short term, they must also formulate plans to deal with the rising popularity of weight loss drugs, including so-called GLP-1 drugs such as Ozempic and Wegovy, which act as appetite suppressants. “Our data finds that 74% of GLP-1 users say there is still room for treating, so maybe they just have a couple bites,” said Kantar’s O’Donnell. “If I’m an ice cream maker, I either make ‘good for you’ ice cream or make uber-premium ice cream and focus on savoring those bites. I’d expect the volume to go down, but make up for it on price.” Recent news: Gopuff’s ‘Ozempic Week’ campaign draws backlash For now, brands seem to be downplaying the Ozempic effect, according to interviews conducted by Ad Age. “Certainly it’s something we have been following and learning about but it’s not something that is a high concern,” said Rachel Jaiven, head of marketing for Häagen-Dazs U.S. “We will always be an indulgent treat and we are not going to be a brand that focuses on ‘better-for-you.’” Still, some brands are introducing smaller-size formats, including Tillamook, which has begun selling pints. (It started selling frozen custards in pints in 2021, but recently discontinued the line and instead began offering ice cream pints.) Analysts predict that other snackable formats will gain ground as well. Yasso has been making Poppables—frozen Greek yogurt balls covered in chocolate—since 2021 that it pitches as a snack. London-based Doughlicious started selling its cookie-dough-covered gelato bites late last year. According to Mintel data, 62% of U.S. consumers prefer a smaller, more indulgent ice cream over a low-calorie version. Packaging company Tetra Pak in a blog post shared how making smaller portion sizes can be a way to break into the snacking category. “[Ice cream makers] should use more premium ingredients and launch it as a snack you are ‘allowed’ to enjoy,” Elsebeth Baungaard, an ice cream portfolio manager at Tetra Pak, said in the post. Blue Bell’s marketing positions its larger sizes as a positive, contrasting itself with the small size trend, including with a social post plugging its half gallons. “We’re very proud to be one of the biggest containers in the ice cream aisle,” said Lauren Lewis, the brand’s public relations manager. View this post on Instagram A post shared by Blue Bell (@bluebellicecream) Also, Blue Bell is responding to health concerns with messaging around how ice cream is not a junk food, and that, in moderation, ice cream made with real milk can be a source of calcium, Lewis said. View this post on Instagram A post shared by Blue Bell (@bluebellicecream) Nostalgic flavors with new twists Mintel found that consumers are usually loyal to certain frozen treat flavors but still want to see variety. “We are finding that while people love to try new flavors, they almost always come back to the classics,” said Tillamook’s Boltin. Tillamook is putting a new spin on one of those classics—chocolate—with a new line of flavors that includes German chocolate, brownie batter, chocolate hazelnut and dark chocolate cookies and cream. It went forward with the launch despite high cocoa prices after research revealed that chocolate is still the most popular ice cream base. View this post on Instagram A post shared by Tillamook (@tillamook) Check out the latest Ad Age events and award programs Jeni’s Splendid Ice Creams is leaning into indulgence and nostalgia with summer line-up debuting June 6 that will include flavors such as sparkling cherry pie, snow cone sorbet, burnt orange dreamsicle, chocolate tahini cookies and brown sugar cookie dough. “Summer is a nostalgic time and we want to lean into that,” said Beth Stallings, director of innovation and communications at Jeni’s Splendid Ice Creams. “We want them to be familiar flavors but packaged in a new way.” Such summer theme marketing has been a staple of the Columbus, Ohio-based brand, which last year sold flavors related to road trip snacks, including high five candy bar, salted licorice, frosé sorbet, sundae cone and butterscotch popcorn. The year before it promoted a poolside theme with watermelon taffy, lemon bar, and sweet cream with toffee. “There’s always a desire for indulgence but it has to be worth it. We are performing really well at the grocery level and see that our more indulgent flavors are selling better,” Stalling said, though she noted that vanilla is still a top seller. Blue Bell, whose core consumer skews older, is betting that family bonding will help keep it relevant for younger generations. “It is still a generational brand,” Lewis said. “Everyone has that memory of going to their grandparents’ house and eating it so that it transfers to your parents and then you.” That is the same sentiment fueling McDonald’s summer ice cream play—the Grandma McFlurry, a butterscotch-flavored variety that includes chopped crunchy candy pieces inspired by the pieces of candy grandmothers might carry in their purses. Shifting summer media channels A more fragmented consumer landscape also means that ice cream brands are exploring and investing in new media channels. Blue Bell has traditionally focused its marketing efforts on regional linear TV, radio and Facebook, where it reaches many older consumers. But Lewis says the team has been dabbling more in TikTok, Hulu and Spotify to reach the next generation. “Our current main demographic is not necessarily a TikTok user, but I think it will eventually transition as this new generation grows up and has kids,” Lewis said. More: Creator and influencer trends to know about right now Häagen-Dazs is investing in online video and social media, in addition to out-of-home, according to Jaiven. It has run TV commercials during the NFL Draft and NBA Playoffs for the past two years. “Our Häagen-Dazs consumers are sports enthusiasts,” said Jaiven. “We know they over-index in fantasy sports leagues and are more likely to buy a product from brands that sponsor sports events. Showing up during the NFL Draft and NBA Playoffs allows us to reach our consumers during cultural moments that are meaningful to them, while also being contextually relevant to moments of Häagen-Dazs consumption.” The ads are a continuation of the “That’s Dazs” campaign, which debuted in 2021 and focused on the idea that consumers can have a luxurious moment when they eat ice cream.

Summer ice cream marketing—how brands are handling Ozempic, rising prices and and other threats

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