The U.S. Market for Ice Cream, Related Frozen Desserts, and Frozen Novelties

Scope and Methodology

• Market Parameters
• Report Methodology

The Products


• Five Product Classifications of Frozen Desserts
• Most Important Classification: Product Category, of Which There Are Three
• Sales Venues: Retail and Foodservice
• Ice Cream and Related Desserts for Retail Are Available in an Array of Package Types and Sizes
• Frozen Novelties Come in Multi-Packs and as Individual Units
• Foodservice Sizes
• Foodservice Venues and Offerings
• Historical Overview
• Dairy Industry is Highly Regulated

Size and Growth of the Market


• 2001 Sales at $20.0 Billion
• Sales Approach $22.5 Billion by 2006
• Table 1-1: U.S. Sales of Ice Cream, Related Frozen Desserts, and Frozen Novelties, 1997-2006 (dollars)
• Market Share by Product Category
• Table 1-2: U.S. Sales of Ice Cream, Related Frozen Desserts, and Frozen Novelties, 2001 (dollars)
• Projected Category Growth Strongest for Frozen Novelties
• Table 1-3: Projected U.S. Sales of Ice Cream, Related Frozen Desserts, and Frozen Novelties, 2001-2006 (dollars)
• Factors Affecting Market Growth

The Marketers


• Leading Marketers
• Manufacture or Co-Pack?
• Foodservice Marketers
• Consolidation and Acquisition Frenzy
• Market Driven by Segmented Innovative Flavor Combinations
• Return to Indulgence
• The No-Sugar-Added Trend
• Frozen Dessert Advertising Is Very Seasonal

Distribution and Retail


• Channels of Distribution
• Distribution Methods
• Dreyer’s Has Exemplary DSD System
• Foodservice Is Largest Distribution Channel
• Supermarkets Claim Largest Retail Share
• Table 1-4: Share of U.S. Packaged Ice Cream, Packaged Related Frozen Desserts, and Frozen Novelties by Outlet, 2001 (percent: Supermarkets, C-stores, Mass Merchandisers, Drug Stores)
• Overall, Supermarkets Are Losing Share to Other Retail Outlets
• Alternative Distribution Channels
• Impulse Venues Are a Big Opportunity
• Foodservice Distribution Other Than Vending
• Private Label Pricing

The Consumer


• Consumers Look for Comfort in the Freezer
• Use of Frozen Desserts
• Table 1-5: Percent of Consumers Who Use Ice Cream, Related Frozen Desserts, and Frozen Novelties: by Product Type and Brand, April 2000-March 2001 (U.S. Adults) (percent): 7 Products/Brands

II. The Products

Scope of the Report

• Consumer Products Segment
• Evolution of Category
• Innovation in Manufacturing
• Quality Dynamics Start Early
• Novelties Enter the Scene
• Soft-Serve Enters the Picture
• The Real Scoop Shop Debuts
• Frozen Yogurt Boom
• Healthful Ice Cream
• Indulgence Returns

Product Breakouts


• Five Product Classifications
• First Classification: Three Primary Categories
• Table 2-1:Product Definitions by Primary Category: Ice Cream, Related Frozen Desserts, and Frozen Novelties
  • Ice Cream
  • Frozen Custard
  • Gelato
  
  
• Related Frozen Desserts
  • Frozen Yogurt
  • Sherbet
  • Sorbet
  • Water Ice
  
  
• Frozen Novelties
• Second Classification: Formulation Quality
  • Economy
  • Regular
  • Premium
  • Superpremium
  
  
• Third Classification: Packaged vs. Frozen Novelty vs. Foodservice
• Packaged Sizes and Shapes
• The Emerging Square Round (Squround)
• Easy-Scooping Reusable Containers
• Resealable Cartons and Sturdier Boxes Debut in 2002
• Multi-Packs and Single-Serve Novelties
• Many Novelties From Which to Choose
  • Bars (Stick and Stickless)
  • Cones
  • Cups
  • Sandwiches
  • Push Tubes
  • Shelf-Stable Water Ices
  • Bite-Size Pieces
  • Yogurt Squeeze Tubes
  • Cakes, Pies, and Rolls
  
  
• Foodservice Sizes and Offerings
• Fourth Classification: Hard-Frozen vs. Soft-Serve
• Table 2-2: Hard-Frozen and Soft-Serve Frozen Dessert Production, 1985-2000 (gallons, percent):Hard-Frozen, Soft-Serve
• Fifth Classification: Ingredient Descriptors
  • Fat Content
  
  
• Table 2-3: Legal Descriptors for the Fat and Caloric Content of Ice Cream : Reduced-Fat, Low-Fat, Light or Lite, Fat-Free
  • Sweetener
  • Natural Ingredients
  • Organic Frozen Desserts

Non-Traditional Frozen Desserts


• Non-Dairy Frozen Desserts
• The Popularity of Soy
• Frozen Libations

Foodservice Descriptors


• Variety of Venues
• Scoops, Twists, and Other Creations
• Sundaes and Banana Splits
• Soda and Floats
• Shakes and Malts
• Other Blended Treats
• Smoothies

Frozen Dessert Manufacturing


• Production Process
• To Overrun or Not
• Quality Control
• Frozen Dessert Manufacturing Plants
• Table 2-4: Number of U.S. Frozen Dessert Manufacturing Plants by Category, 1970-2000
• Co-Packing is Big Business

Government Regulations


• Federal Regulations
• Understanding Federal Milk Marketing Orders
• If Those are Orders, Then What Is a Compact?
• Farm Bill 2002 Enacted for Six Years
• Labeling Overview
• Standards of Identity
• Labeling Nomenclature
• Nutritional Information Requirements
• Exemptions
• Nutrition Regulations In Foodservice
• A Variety of Possible Claims
• Product Recalls
• Easing of Listeria Regulations

III. The Market

Market Size and Growth

• 2001 Sales for Total Market at $20.0 Billion
• Table 3-1: Total U.S. Sales of Ice Cream, Related Frozen Desserts,
• Figure 3-1: Total U.S. Sales of Ice Cream, Related Frozen Desserts, and Frozen Novelties, 1997-2001 (percent)
• Ice Cream Leads the Market, Followed by Frozen Novelties
• Table 3-2: Total U.S. Sales of Ice Cream, Related Frozen Desserts, and Frozen Novelties, 1997-2001 (dollars)
• Related Frozen Desserts Are Small Fraction of the Overall Market
• More Than Half of Sales Come From Foodservice
• Table 3-3: Total U.S. Sales of Ice Cream, Related Frozen Desserts, and Frozen Novelties by Market, 1997-2001 (dollars)
• Overall Retail Growth by Category Is Positive
• Table 3-4: U.S. Retail Sales of Packaged Ice Cream, Related Frozen Desserts, and Frozen Novelties by Category, 1997-2001 (dollars)
• Foodservice Sales Down Across All Categories
• Table 3-5:U.S. Foodservice Sales of Ice Cream, Related Frozen Desserts, and Frozen Novelties by Category, 1997-2001 (dollars)
• With Soft-Serve Part of Product Mix, Ice Cream Sales Are Highest in Foodservice
• Table 3-6: Total U.S. Sales of Ice Cream by Market, 1997-2001 (dollars)
• Frozen Yogurt Fares Better in Foodservice
• Table 3-7: Total U.S. Sales of Frozen Yogurt by Market, 1997-2001 (dollars)
• Sherbet/Sorbet/Water Ice More Popular Away From Home
• Table 3-8: Total U.S. Sales of Sherbet/Sorbet/Water Ice by Market, 1997-2001 (dollars)
• Frozen Novelty Business Split Between Retail and Foodservice
• Table 3-9: Total U.S. Sales of Frozen Novelties by Market, 1997-2001 (dollars)

Market Composition


• Ice Cream Accounts for More Than Half of the Market
• Figure 3-2: Total U.S. Ice Cream, Related Frozen Desserts, and Frozen Novelties: Share of Dollar Sales by Category, 2001 (percent): Ice Cream, Frozen Yogurt, Sherbet/Sorbet/Water Ice, Frozen Novelties
• Full-Fat Ice Cream Dominates Retail Ice Cream Business
• Figure 3-3: U.S. Retail Ice Cream, Related Frozen Desserts, and Frozen Novelties: Share of Dollar Sales by Category, 2001 (percent): Ice Cream, Frozen Yogurt, Sherbet/Sorbet/Water Ice, Frozen Novelties
• Table 3-10: U.S. Retail Sales of Packaged Ice Cream by Fat Content, 1997-2001 (dollars)
• Figure 3-4: U.S. Retail Sales of Packaged Ice Cream by Fat Content: Share of Dollar Sales, 2001 (percent): Full-Fat, Light/Reduced-Fat/Low-Fat, Nonfat
• Cones and Sandwiches Catching Up With Bars
• Table 3-11: U.S. Retail Sales of Frozen Novelties by Major Form, 1997-2001 (dollars)
• Figure 3-5: U.S. Retail Sales of Frozen Novelties by Major Form: Share of Dollar Sales, 2001 (percent): Ice Cream Bars, Cones, Cups, Sandwiches, Push Tubes, Cakes, Pies, and Rolls, Other
• Private Label Is Almost One-Fourth of Retail Market
• Figure 3-6: U.S. Retail Sales of Packaged Ice Cream, Packaged Related Frozen Desserts, and Frozen Novelties, Branded vs. Private Label: Share of Dollar Sales, 2001 (percent)
• Private Label Shows Healthy Growth
• Table 3-12: U.S. Retail Sales of Packaged Ice Cream, Packaged Related Frozen Desserts, and Frozen Novelties: Branded vs. Private Label, 1997-2001 (dollars)
• Private Label Is Strongest in Retail Sherbet/Sorbet/Water Ice Sales
• Figure 3-7: U.S. Retail Sales of Packaged Ice Cream, Branded vs. Private Label: Share of Dollar Sales, 2001 (percent)
• Figure 3-8: U.S. Retail Sales of Packaged Frozen Yogurt, Branded vs. Private Label: Share of Dollar Sales, 2001 (percent)
• Figure 3-9: U.S. Retail Sales of Packaged Sherbet/Sorbet/Water Ice, Branded vs. Private Label: Share of Dollar Sales, 2001 (percent)
• Figure 3-10: U.S. Retail Sales of Frozen Novelties, Branded vs. Private Label: Share of Dollar Sales, 2001 (percent)
• Ice Cream Dominates Foodservice Frozen Desserts Business
• Figure 3-11: U.S. Foodservice Ice Cream, Related Frozen Desserts, and Frozen Novelties: Share of Dollar Sales by Category, 2001 (percent): Ice Cream, Frozen Yogurt, Sherbet/Sorbet/Water Ice,
• Foodservice Ice Cream Split Between Hard-Frozen and Soft-Serve
• Figure 3-12: U.S. Foodservice Sales of Ice Cream, Hard-Frozen vs. Soft-Serve: Share of Dollar Sales, 2001 (percent)
• Foodservice Frozen Yogurt a Soft-Serve Market
• Figure 3-13: U.S. Foodservice Sales of Frozen Yogurt, Hard-Frozen vs. Soft-Serve: Share of Dollar Sales, 2001 (percent)
• Traditional Supermarkets Are the Primary Retail Sales Venue
• Figure 3-14: Total U.S. Packaged Ice Cream, Packaged Related Frozen Desserts, and Frozen Novelties: Share of Dollar Sales by Retailer Type, 2001 (percent): Supermarkets, C-stores, Mass Merchandisers, Drug Stores
• Supermarkets and Mass Merchandisers Sell Mostly Ice Cream and Multi-Pack Frozen Novelties
• Figure 3-15: U.S. Supermarket Packaged Ice Cream, Packaged Related Frozen Desserts, and Frozen Novelties: Share of Dollar Sales by Category, 2001 (percent): Ice Cream, Frozen Yogurt, Sherbet/Sorbet/Water Ice, Frozen Novelties
• Figure 3-16: U.S. Mass Merchandiser Packaged Ice Cream, Packaged Related Frozen Desserts, and Frozen Novelties: Share of Dollar Sales by Category, 2001 (percent): Ice Cream, Frozen Yogurt, Sherbet/Sorbet/Water Ice, Frozen Novelties
• The Impulse/Convenience Market Is All About Small Sizes
• Figure 3-17: U.S. Drug Store Packaged Ice Cream, Packaged Related Frozen Desserts, and Frozen Novelties: Share of Dollar Sales by Category, 2001 (percent): Ice Cream, Frozen Yogurt, Sherbet/Sorbet/Water Ice, Frozen Novelties
• Figure 3-18: U.S. C-Store Packaged Ice Cream, Packaged Related Frozen Desserts, and Frozen Novelties: Share of Dollar Sales by Category, 2001 (percent): Ice Cream, Frozen Yogurt, Sherbet/Sorbet/Water Ice, Frozen Novelties
• Still a Great Way to Cool Off
• Figure 3-19: Share of U.S. Retail Sales of Packaged Ice Cream, Packaged Related Frozen Desserts, and Frozen Novelties by Season, 2001 (percent)
• Regional Preferences by Product Type
• National Brands Still Strongest in Originating Regions
• Foodservice Brands Show Regional Shop Strength
• Table 3-13:Regional Distribution Indices for Consumption of Ice Cream, Related Frozen Desserts, and Frozen Novelties: By Product Type, October 2000-September 2001(U.S. Adults): Midwest, Northeast, South, West

Factors to Market Growth


• Innovative Flavors for Endless Opportunity
• Innovative Inclusions Drive Market Growth
• Inclusions Most Often Used in Ice Cream
• Going After Either Kids or Adults
• Ice Cream Is Meant to Be an Indulgence Food
• Licensing and Marketing Programs Lend Branding Assistance to Regional Marketers
• Co-Branding Opportunities
• Economic Influence on Frozen Dessert Sales
• Private Label Strengthens
• Economic Impact On Away-From-Home Eating
• The Price of Milkfat Continues to Impact Ice Cream Sales
• The Weather
• Globalization of Economy
• Globalization of Culture
• Improved Impulse Market Distribution Grows Novelty Business
• Convenience Drives Innovation
• Nutritional Niche

Projected Market Growth


• Sales to Approach $22.5 Billion by 2006
• Table 3-14: Projected Total U.S. Sales of Ice Cream, Related Frozen Desserts, and Frozen Novelties, 2001-2006 (dollars)
• Healthy Increases for Ice Cream and Frozen Novelties
• Table 3-15: Projected Total U.S. Sales of Ice Cream, Related Frozen Desserts, and Frozen Novelties by Category, 2001-2006 (dollars)
• Retail Sales Continue to Grow While Foodservice Sales Make a Comeback
• Table 3-16: Projected Total U.S. Sales of Ice Cream, Related Frozen Desserts, and Frozen Novelties by Market, 2001-2006 (dollars)
• Growth Consistent For All Retail Frozen Novelties
• Table 3-17: Projected U.S. Retail Sales of Packaged Ice Cream, Packaged Related Frozen Desserts, and Frozen Novelties by Category, 2001-2006 (dollars)
• Nonfat Retail Ice Cream Stabilizes as Niche Market
• Table 3-18: Projected U.S. Retail Sales of Packaged Ice Cream by Fat Content, 2001-2006 (dollars)
• Foodservice Shows Greatest Increases Early On
• Table 3-19: Projected U.S. Foodservice Sales of Ice Cream, Related Frozen Desserts, and Frozen Novelties by Category, 2001-2006 (dollars)

IV. The Marketers

Marketer Diversity

• All Types of Marketers
• International Conglomerates Compete for Number-One Position in U.S. Frozen Dessert Market
• National Brands
• Smaller Marketers
• Regional Players Keep Growing
• Local Marketers Maintain a Fair Market Share
• Ice Cream Delivered to Your Door
• On Being a Co-Packer, Manufacturer, Marketer, and Restaurateur
• Manufacture or Co-Pack?
• Licensing and Marketing Programs
• Co-Branding Opportunities
• Foodservice Marketers
• Ice Cream Made to Order
• Buying Ice Cream on the Internet
• Table 4-1: U.S. Ice Cream, Related Frozen Desserts, and Frozen Novelties: Selected Marketers by Brand and Product Type (20 Marketers)

Consolidation of Industry


• The Big Get Bigger
• When Number-One and Number-Two Dairies Merge
• A Partnership in Ice Cream Ends
• A New Partnership Begins to Form in 2002
• National Dairy Holdings Is Formed
• Friendly’s Downsizes for Survival
• Jeremy Makes His Last Batch
• Another Environmentalist Succumbs to the Big Guys
• Hiland Dairy Buys Farm Fresh
• News Scoop on Ice Cream Shops
• TCBY Gets New Management and New Look
• Headlines on Companies Involved in Retail and Foodservice

Competitive Overview


• The Marketplace
• Overview of Retail Marketers
• Unilever Leads as Top Retail Marketer of Frozen Desserts
• Rivals in the Number-One and Number-Two Spot
• Table 4-2: Total U.S. Retail Sales of Packaged Ice Cream, Packaged Related Frozen Desserts, and Frozen Novelties: Top-Ten Marketers Sales and Shares, 2001 (dollars)
• Dreyer’s/Edy’s Is the Number-One Brand in Packaged Ice Cream, Frozen Yogurt, and Sherbet/Sorbet/Water Ice
• Table 4-3: Total U.S. Retail Sales of Packaged Ice Cream: Top-Ten Brands Sales and Shares, 2001 (dollars)
• Fewer Players in Packaged Frozen Yogurt
• Table 4-4: Total U.S. Retail Sales of Packaged Frozen Yogurt: Top-Ten Brands Sales and Shares, 2001 (dollars)
• Many Sherbet/Sorbet/Water Ice Marketers with Very Small Shares
• Table 4-5: Total U.S. Retail Sales of Packaged Sherbet/Sorbet/Water Ice: Top-Ten Brands Sales and Shares, 2001 (dollars)
• The Same Is True for Frozen Novelties, but for Different Reasons
• Table 4-6: Total U.S. Retail Sales of Frozen Novelties: Top-Ten Brands Sales and Shares, 2001 (dollars)
• C-stores, Kiosks, and Non-Grocery Stores Are Very Important to Frozen Novelty Marketers
• Foodservice Outlets Expand Reach for Novelties Too
• Frozen Novelty Vending Sales Are Booming
• Leading Foodservice Chains
• Table 4-7: Select U.S. Frozen Dessert Foodservice Chains: Number of Units, 2001 (29 marketers)

Competitive Profile: Baskin-Robbins USA, Co., Glendale, California


• Company Overview
• Synergies in Quick-Service
• Almost 1,000 Flavors and Counting
• Secret Recipes are Now In Dean Foods’ Care
• Record Sales with Shrek Promotion
• The DreamWorks Relationship Continues
• Baskin-Robbins Partners with NBC

Competitive Profile: Blue Bell Creameries L.P., Brenham, Texas


• Company Overview
• Growing Blue Bell’s Flavor Portfolio
• Direct-Store-Delivery System
• Plans for Growing Market Share

Competitive Profile: Carvel Corp., Farmington, Connecticut


• Company Overview
• New Owners Have Big Plans
• Many Firsts for Carvel

Competitive Profile: CoolBrands International, Inc., Ronkonkoma, New York


• Company Overview
• Other Businesses
• The Tropicana Relationship
• Growing the Family of Brands
• CoolBrands Launches National Foodservice Program
• Expanding Into Mexico and Ireland
• Summer 2002 Acquisition

Competitive Profile: Dean Foods Co., Dallas, Texas


• Company Overview
• In the Beginning for Dean Foods
• Suiza Foods’ Aggressive Start
• Other Imminent Changes
• The Frozen Desserts Business
• Mayfield Dairy Is a Frozen Dessert Leader for Dean Foods
• Mayfield Appeals To Hispanic Consumer
• Mayfield Is First with Innovative Novelty Packaging
• More Packaging Innovations: Resealable Cartons
• Table 4-8: Dean Foods-Owned U.S. Manufacturing Facilities, 2002 (56 Marketers)

Competitive Profile: Dreyer’s Grand Ice Cream, Inc., Oakland, California


• Company Overview
• Nestlé and Dreyer’s Will Merge
• Impact of New Partnership
• Dreyer’s Partnerships with Other Marketers Is Big Business
• Direct-Store-Delivery Program
• Responding to Change to Remain a Leader
• Dreyer's Grants Consumers’ Rookie Wish

Competitive Profile: Fieldbrook Foods, Corp., Dunkirk, New York


• Company Overview
• Fieldbrook’s Beginnings
• A Company with Big Plans
• Keys to Successful Partnerships

Competitive Profile: Friendly Ice Cream Corp., Wilbraham, Massachusetts


• Company Overview
• Refinancing Improves Credit Rating
• Community Involvement

Competitive Profile: International Dairy Queen, Inc., Minneapolis, Minnesota


• Company Overview
• IDQ Settles Franchise Dispute
• The Blizzard Turns Sixteen
• Blizzard of the Month Program
• Saying Good-bye to Frozen Yogurt
• IDQ Test Markets Sit-Down Restaurant

Competitive Profile: Mars, Inc., McLean, Virginia (Masterfoods USA, Hackettstown, New Jersey)


• Company Overview
• Candies Are a Natural Ice Cream Inclusion

Competitive Profile: National Dairy Holdings, L.P., Dallas, Texas


• Company Overview
• 2002 Is the Year to Get Organized
• Marigold Foods’ Strength in the Midwest Makes it a Leading Packaged Frozen Dessert Marketer
• Crowley Foods Markets Green’s and Hagan Frozen Desserts

Competitive Profile: Nestlé Ice Cream Co., LLC, San Ramon, California


• Company Overview
• Nestlé Now Is the Sole Owner
• Häagen-Dazs Gelato Is the First Big Launch by the Partnership
• The History of Häagen-Dazs
• Nestlé Buys Florida Distributor
• Nestlé and Dreyer’s Agree to Merge Frozen Dessert Businesses
• Merger Brings Change
• New Products Under Nestlé Brand

Competitive Profile: Parmalat USA,Wallington, New Jersey


• Company Overview
• Parmalat’s U.S. Origins
• Broadening the Product Mix
• Breaking World Records

Competitive Profile: Prairie Farms Dairy, Inc., Carlinville, Illinois


• Company Overview
• Growth Through Various Business Deals

Competitive Profile: Turkey Hill Dairy, Inc., Conestoga, Pennsylvania


• Company Overview
• Unusual Name Pays Tribute to Heritage
• Updating the Ice Cream Container
• Updating the Manufacturing Plant
• Turkey Hill’s Adventurous Cow

Competitive Profile: Unilever, London, United Kingdom(Good Humor-Breyers, Green Bay, Wisconsin, and Ben & Jerry’s Homemade Holdings, Inc., South Burlington, Vermont)


• Company Overview
• Good Humor-Breyers’ Beginnings
• Good Humor-Breyers’ Distribution Channels
• Ben & Jerry Team Up
• The Ben & Jerry’s Acquisition
• New Management Maintains Mission
• Keeping Promises
• The Scoop Shop Business
• Chilling Out Before You Fly
• Ben & Jerry’s Plans to Restructure

Competitive Profile: Wells’ Dairy, Inc., LeMars, Iowa


• Company Overview
• State-of-the-Art Facilities
• Building a New Ice Cream Plant
• Co-Packing is Big Business for Wells’ Dairy

Marketing and New Products


• Segmenting the Market
• Targeting Kids or Adults
• Novelties For Kids
• Indulgence for Adults
• Return to Indulgence
• Inclusions Drive Innovation
• Many Inclusions Present Co-Branding Opportunities
• The Baked Good Inclusion Trend
• Limited Edition Flavors
• Holiday Flavors
• Hispanic Flavors
• Italian Gelato Is in Too
• The No-Sugar-Added Trend
• Examples of New Product Introductions
• Table 4-9: U.S. Packaged Ice Cream: Select New Product Introductions, 2001-2002 (10 Marketers)
• Table 4-10: U.S. Packaged Related Frozen Desserts: Select New Product Introductions, 2001-2002 (3 Marketers)
• Table 4-11: U.S. Frozen Novelties: Select New Product Introductions, 2001-2002 (13 Marketers)
• Table 4-12: U.S. Foodservice Ice Cream and Related Frozen Desserts: Select New Product Introductions, 2001-2002 (6 Marketers)

Advertising and Promotion


• Frozen Dessert Advertising and Promotion Trends
• Spending on Frozen Dessert Advertising
• “Cause” Marketing Efforts
• Ice Cream for Life
• Other Promotions Focused on Hits and Heights
• Häagen-Dazs Shops Test On-Line Customer Feedback.
• TCBY Offers Schools Fundraising Opportunities
• Maine Ice Cream Reaches U.S. Military

V. Distribution And Sales

Distribution Overview

• Foodservice Is Largest Distribution Channel
• Figure 5-1: U.S. Ice Cream, Related Frozen Desserts, and Frozen Novelties: Share of Total Sales by Distribution Channel, 2001 (percent): Retail, Foodservice
• Distribution Methods
• Direct Delivery Advantages
• The Cost of Face-To-Face Business
• Dreyer’s Has Exemplary DSD System
• Blue Bell’s Regional DSD System
• Cutting Costs With Carts
• Warehouse Distribution
• Smaller Marketers Work Through Brokers
• Electronic Data Aids in Restocking
• Technologies For Freezer Fleets
• Computerizing Distribution
• Distribution Ownership
• Gaining Distribution
• Consolidation of Distribution

Retail Outlets


• Traditional Supermarkets Account for 77.6% of Retail Sales
• Table 5-1 Share of U.S. Packaged Ice Cream, Packaged Related Frozen Desserts, and Frozen Novelties: Retail Sales by Outlet and Product, 2001
• Figure 5-2: Retail Share of Sales of Packaged Ice Cream by Outlet, 2001 (percent): C-store, Drug, Supermarket, Mass Merchandisers
• Frozen Yogurt and Sherbet/Sorbet/Water Ice Are Sold Through C-stores More Than Ice Cream
• Figure 5-3: Retail Share of Sales of Frozen Yogurt1 by Outlet, 2001 (percent): C-store, Drug, Supermarket, Mass Merchandisers
• Figure 5-4: Retail Share of Sales of Sherbet/Sorbet/Water Ice1 by Outlet, 2001 (percent): C-store, Drug, Supermarket, Mass Merchandisers
• Frozen Novelties Have Most Varied Sales
• Figure 5-5: Retail Share of Sales of Frozen Novelties by Outlet, 2001 (percent): C-store, Drug, Supermarket, Mass Merchandisers
• Overall, Supermarkets Are Losing Share to Other Retail Outlets
• Table 5-2: Percent of U.S. Households Shopping Various Retail Outlets, 2001 (percent)
• Table 5-3: Percent of Wal-Mart Supercenter Channel-Shift Revenue Growth, 2001
• Wal-Mart’s Food Business Is Predicted to Continue to Grow
• For All Stores, Out-of-Stock Product Limits Growth
• Slotting Allowances at Supermarkets
• Receiving Product
• Freezer Types
• Merchandising Units
• Freezer Arrangements
• Heavily Discounted Category
• C-store Opportunity
• Table 5-4: U.S. Packaged Ice Cream, Packaged Related Frozen Desserts, and Frozen Novelties: Suggested Retail Price of Selected Products (8 Marketers)
• Private Label Pricing
• Table 5-5: U.S. Packaged Ice Cream, Packaged Related Frozen Desserts, and Frozen Novelties: Private Label vs. Branded (Comparative Retail Price of Premium Ice Cream) (Breyer’s, Dreyer’s/Edy’s, Private Label)
• Table 5-6: U.S. Packaged Ice Cream, Packaged Related Frozen Desserts, and Frozen Novelties: Private Label vs. Branded (Comparative Retail Price of Superpremium Ice Cream) (Ben & Jerry’s, Breyer’s Ice Cream Parlor, Dean’s Rewards, Häagen-Dazs, Private Label)
• Table 5-7: U.S. Packaged Ice Cream, Packaged Related Frozen Desserts, and Frozen Novelties: Private Label vs. Branded (Comparative Retail Price of Sundae Cone Novelties) (Klondike Big Bear Cone, Nestlé Drumstick, Private Label)
• Table 5-8: U.S. Packaged Ice Cream, Packaged Related Frozen Desserts, and Frozen Novelties: Private Label vs. Branded (Comparative Retail Price of Vanilla Ice Cream Sandwich Novelties) (Blue Bunny, Dean’s, Kemps, Private Label)
• Table 5-9: U.S. Packaged Ice Cream, Packaged Related Frozen Desserts, and Frozen Novelties: Private Label vs. Branded (Comparative Retail Price of Ice Cream Bar Novelties) (Dean’s, Eskimo Pie, Kemps, Private Label)
• Table 5-10: U.S. Packaged Ice Cream, Packaged Related Frozen Desserts, and Frozen Novelties: Private Label vs. Branded (Comparative Retail Price of Superpremium Ice Cream Bar Novelties) (Dean’s Rewards, Dove, Häagen-Dazs, Private Label)
• Table 5-11: U.S. Packaged Ice Cream, Packaged Related Frozen Desserts, and Frozen Novelties: Private Label vs. Branded (Comparative Retail Price of Water Ice Stick Bar Novelties) (Popsicle, Private Label)

Alternative Distribution Outlets


• The Increasingly Popular Warehouse Club Store
• Membership Benefits
• Multi-Packs and Family-Size Products
• Table 5-12: U.S. Packaged Ice Cream, Packaged Related Frozen Desserts, and Frozen Novelties: Suggested Club-Store Prices of Selected Products (6 Products)
• Internet Sales
• Home Delivery

Foodservice Outlets


• Overview
• Scoop Shops and Quick-Service Restaurants Are the Most Common Foodservice Frozen Dessert Outlets
• At Restaurants, Ice Cream Is the Dessert
• Kiosks Make Frozen Desserts Available Anywhere
• Mobile Vending Includes Pushcarts and Trucks
• Fast-Food Outlets
• Vending Improves Availability
• Ice Cream Vending Background
• Modern Frozen Novelty Vending Machines
• Increasing Vending Profits

VI. The Consumer

Consumer Attitudes

• Consumers Economize on Food Spending
• Report Segments Supermarket Shopper
  • Economizers
  • Carefree Spenders
  • Time Challenged
  
  
• Looking for Comfort in the Freezer
• The Return to Indulgence
• Older Consumers Are More Concerned with Fat and Calories
• Chocolate’s Many Forms Are Tops with Consumers
• Consumers Want to Have Choices
• Consumers Are Very Brand Loyal at the Supermarket, but Not with C-Store Impulse Purchases
• Opportunities with the Hispanic Consumer

Consumer Use and Demographics


• Eating Occasions
• Usually as a Snack or Dessert
• Low-Fat Ice Cream Snack Improves Kid’s Diets
• U.S. Per Capita Production
• Table 6-1: Total and Per Capita Production of Frozen Desserts, 1920-2000 (gallons, quarts)
• Simmons Consumer Survey
• Simmons Data on Frozen Desserts
• Table 6-2: Percent of Consumers Who Use Ice Cream, Related Frozen Desserts, and Frozen Novelties: by Product Type and Brand, October 2000-September 2001 (U.S. Adults) (17 Products)
• Regional Brands Often Perform Like National Brands in Strong Markets
• Table 6-3: Percent of Consumers Who Use Ice Cream and Sherbet: by Brand and Region, October 2000-September 2001 (U.S. Adults): National, Midwest, Northeast, South, West
• Purchasers of Ice Cream
• Table 6-4: Demographic Characteristics Favoring Purchase of Ice Cream: Full-Fat/Regular Ice Cream vs. Fat-Free/Low-Fat Ice Cream October 2000-September 2001 (U.S. Adults) (Age, Gender, Race, Education, Employment, Occupation, Marital Status, Region, Household Income, Household Size, Children in Household)
• Frozen Yogurt Is a Female Product
• The Varied Sherbet Purchasers
• Table 6-5: Demographic Characteristics Favoring Purchase of Related Frozen Desserts: Frozen Yogurt vs. Sherbet October 2000-September 2001 (U.S. Adults) (Age, Gender, Race, Education, Employment, Occupation, Marital Status, Region, Household Income, Household Size, Children in Household)
• Frozen Novelties Are for Homes with Kids
• Table 6-6: Demographic Characteristics Favoring Purchase of Frozen Novelties October 2000-September 2001 (U.S. Adults) (Age, Gender, Race, Education, Employment, Occupation, Marital Status, Region, Household Income, Household Size, Children in Household)
• The Power of a National Brand
• Table 6-7: Demographic Characteristics Favoring Purchase of Ice Cream: National Branded Ice Cream vs. Store Branded/Private Label Ice Cream October 2000-September 2001 (U.S. Adults) (Age, Gender, Race, Education, Employment, Occupation, Marital Status, Region, Household Income, Household Size, Children in Household)
• Purchasers of Superpremium Ice Cream
• Table 6-8: Demographic Characteristics Favoring Purchase of Superpremium Branded Ice Cream: Ben & Jerry's Ice Cream vs. Häagen-Dazs Ice Cream October 2000-September 2001 (U.S. Adults) (Age, Gender, Race, Education, Employment, Occupation, Marital Status, Region, Household Income, Household Size, Children in Household)
• Foodservice Frozen Dessert Purchasers Are Varied
• Table 6-9: Demographic Characteristics Favoring Purchase of Foodservice Frozen Desserts by Brand October 2000-September 2001 (U.S. Adults) (Age, Gender, Race, Education, Employment, Occupation, Marital Status, Region, Household Income, Household Size, Children in Household)
• Ice Cream Bars Are Favored by the More Mature Consumer
• Table 6-10: Demographic Characteristics Favoring Purchase of Frozen Novelties (Ice Cream Bars) by Brand October 2000-September 2001 (U.S. Adults) (Age, Gender, Race, Education, Employment, Occupation, Marital Status, Region, Household Income, Household Size, Children in Household)
• Other Frozen Novelties Are Favored in Regions of Their Origin
• Table 6-11: Demographic Characteristics Favoring Purchase of Frozen Novelties (Fruit Bars and Cones) by Brand October 2000-September 2001 (U.S. Adults) (Age, Gender, Race, Education, Employment, Occupation, Marital Status, Region, Household Income, Household Size, Children in Household)

Appendix I: Examples Of Consumer And Trade Advertising And Promotions

Appendix II: Addresses Of Selected Marketers