Even c-store’s most indulgent category isn’t immune to consumer’s preference for healthier snacking options.
By David Bennett, Senior Editor
The old saying about having your cake and eating it too can be applied to a bevy of things.
More and more, the same can be said for ice cream and other frozen treats touted as better for you (BFY). More and more, U.S. consumers are opting for ice cream cups, cones and sandwiches as well as a variety of frozen novelty treats including pops, cones, popsicles, juice bars and gelato sporting cleaner labels and less-processed ingredients.
Across all retail channels, including convenience stores, ice cream sales are on the rise, growing 3.4% for the 52 weeks ending May 27, 2017, according to Nielsen research data. Convenience stores are highly relevant to consumers’ on-the-go lifestyles and are well-equipped to deliver products that meet their immediate needs, and that thinking applies to BFY ice cream varieties as well.
Ice cream that qualified as clean label grew 96%.
CLEAN DATA
“The channel lines are blurring, and shoppers are expecting to find products that meet their health and wellness needs outside of just traditional grocery,” said Andrew Mandzy, director of strategic insights for Nielsen.
At the core, consumers who are shopping for healthier varieties of ice cream, such as clean label, tend to be shoppers under the age of 44, those with children under age 18, those that live in urban cities and have a household income of more than $100,000. C-stores have an opportunity to gain these shoppers’ dollars with the right mix of ice cream products, emphasizing the better-for-you assortment consumers are after.
As industry data indicates, Americans’ preference for something sweet without the guilt of processed ingredients is trending upward, including the c-store channel. Tim Cote, vice president of marketing at Beaverton, Ore.-based Plaid Pantry, said a shift to healthier frozen offerings has taken hold, but not at the expense of richer options.
But it really depends on how you define BFY, he said.
“We really have not seen a move toward lower-calorie, lower-fat ice cream products. Indulgence seems as alive as ever,” said Cote. “That said, if you define BFY as short ingredient lists, organic, GMO-free, hormone free and better for the environment, then yes, we have seen this trend.”
Plaid Pantry operates 110 c-stores in Oregon and Washington State.
STRIKING A BALANCE
Retailers that promote ice cream and other offerings that taste good and make customers feel good is a perfect balance for stronger in-store sales.
“Consumers demand items with these attributes,” Cote said. “It may not help the customer control his or her waist line, but the idea that the product will help him or her live a cleaner lifestyle that impacts the environment, and others less negatively, is important.”
The demand for better-for-you options is only going to increase as consumers continue to research the ingredients going into their food. According to the Nielsen Global Health and Ingredient-Sentiment Survey published in August 2016, consumers pay close attention to product details. In fact, 73% of respondents said they feel positively about companies that are transparent about their product sourcing. Also, 68% are willing to pay more for food and beverages that don’t contain undesirable ingredients; and 64% of consumers’ diets prohibit certain ingredients.
“Small manufacturers, many of which are popping up in the ice cream category, are leading both dollar sales and growth,” Mandzy said. “We expect to continue seeing this shift to better-for-you products across all U.S. retail channels, including convenience.”
Charlotte Havely, director of marketing for Weigel’s Farm Stores in Powell, Tenn., can attest to the power of ice cream at the 65-store chain.
“I personally believe that while consumers are more health-conscious or calorie and sugar conscious… we still all like having a treat,” said Havely. “And, what’s the most decadent and satisfying of treats for this time of year? Ice cream of course.”
