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    Dairy Foods & BeveragesIce Cream/Novelties

    Nestlé enters the $1B frozen novelty club

    Carvel leads the ice cream/ice milk desserts segment, while Fun Pops tops ice pop sales.

    By Brian Berk
    Chocolate Ice Cream

    Photo courtesy of SasaJo via www.gettyimages.com

    March 6, 2023

    When it comes to frozen novelties, Nestlé had a standout year in every way. According to data from Chicago-based Information Resources Inc. (IRI), the Arlington, Va.-based company sold more than $1 billion in frozen novelties during the 2022 calendar year. 

    For the 52 weeks ending January 1, Nestlé sold $1.07 billion worth of frozen novelties, enjoying a robust 24% gain year over (YoY) in U.S. multi-outlets and convenience stores. Equally as impressive in a high inflation environment were its unit sales gains, which rose 9% YoY to nearly 200 million units, IRI reports. 

    With a 15% market share, Nestlé comprises a large swath of the total $7-plus billion frozen novelty market, which generated an 11% overall increase.
     Other brands also saw strong sales within frozen novelties. For example, Yasso had the greatest percentage growth of both dollar sales and unit sales. The Boulder, Colo.-based company saw dollar sales increase 32% YoY to $240 million, while unit sales, at 23%, rocketed higher to 45 million, IRI data reveals. 

    Also experiencing both dollar sales and unit sales growth for the 52 weeks ending Jan. 1 were Outshine, a brand of Nestlé, whose sales increased by 17% to $550 million and unit sales by 3% to nearly 107 million. Klondike, a brand of Good Humors-Breyers, saw YoY sales rise 15% to $414 million and unit sales lifted by 6% to almost 100 million.

    Under frozen novelty subcategories, the $341 million frozen ice cream/ice milk desserts segment was led by Atlanta-based Carvel, whose dollar sales rose 4% YoY to $228 million. However, its unit sales took a slight 4% dip to 11 million. Among the top 10 frozen ice cream/ice milk desserts processors, Wilmington, Mass.-based Abilyn’s Frozen Bakery experienced a double-digit dollar sales gain of 72% to $574,115, and a unit sales increase of a similarly robust 65% to nearly 38,000, IRI data reports.

    Virginia Beach, Va.-based Uncle Harry’s Moline, Ill.-based Whitey’s also had solid years in frozen ice cream/ice milk desserts sales. Uncle Harry’s sales rocketed higher by 28% YoY to nearly $9 million, as well as a 27% unit sales gain to 446,000. Whitey’s sales increased by 15% YoY to $88,000, while unit sales rose 8% to nearly 6,000.

    In the $202 million ice pops subcategory, Fun Pops led the way for the 52 weeks ending Jan. 1. Its sales rose by 6% YoY to $75 million. However, its unit sales dipped by 3% to 27 million, IRI data states. Among the top 10 processors of ice pops, enjoying both dollar sales gains and unit sales gains during 2022, were Pop Ice, whose dollar sales improved by 16% YoY to $18 million, while unit sales eked out a gain of less than 1% YoY to almost 3.6 million. Otter Pops saw sales rise 16% YoY to nearly $15 million, with unit sales of less than 1% to 2.57 million, according to the market research firm.

    Yet, the biggest winner on the ice pop subcategory list, in terms of YoY percentage gains, was British Columbia, Canada-based DeBee’s Organics, whose products flew off the shelves compared to the prior year. Its sales totaled $8.5 million for the period ending Jan. 1, a 91% YoY gain, while unit sales grew 31% YoY to 1.63 million, per IRI data.

    KEYWORDS: frozen novelties frozen novelty sales ice cream desserts ice pops Nestlé USA

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    Brian

    Brian Berk has been a writer and editor for 21 years. He has served as editor-in-chief of the Music & Sound Retailer and managing editor of Convenience Store News, both the top-circulated magazines in their respective fields. Berk has also held editing and writing roles in drug store retail, photography, and natural health products. Holding a bachelor’s degree from SUNY Cortland and a master’s degree from Quinnipiac University, Berk lives in Port Washington, N.Y., with his wife and two children.

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