Adapting to the Melting Market: The Evolution of the Ice Cream Industry Amidst Challenges and Changes
In recent years, the ice cream industry has faced challenges that have led food companies to explore new strategies for profitability. While Nestlé made changes years ago, Unilever is just beginning to reorganize its ice cream business. The president of Glacesuisse, the association of Swiss ice cream manufacturers, notes a significant decline in sales for June compared to previous years. The summer months are crucial for ice cream sales, with more than half of the annual volume sold during this time.
Major consumer goods manufacturers like Unilever and Nestlé are reorganizing their ice cream divisions to adapt to changing market dynamics. Factors such as weather dependence, expensive logistics, and increased consumption of store-brand ice cream have influenced the industry. Despite these challenges, companies like Ferrero are investing in the ice cream sector to expand their brand portfolios.
The formation of the joint venture Froneri has allowed Nestlé to streamline its operations and maximize production efficiency. Froneri has gained market share in recent years by offering a variety of well-known brands, including private labels for retailers. The partnership between Nestlé and Froneri has enabled Nestlé to mitigate some of these challenges and maintain a strong position in the market.
Looking ahead, potential scenarios include a sale of Froneri to financial investors or an IPO, as well as further restructuring within the ice cream industry. While challenges persist, companies are adapting to changing consumer preferences and market dynamics to remain competitive in the ice cream business.
