Growing at a compound annual rate of 2.6% from 2019 to 2021 and capturing about 20% of the ice cream market during that period. “Despite the Devastation of COVID” Unilever’s €7 billion ice cream business already has a significant lead over its next closest competitor, which has 10% market share, Matt Close, president of Unilever’s ice cream division, touted during the company’s recent investor day.
He added that the company intends to extend that lead significantly in the coming years with competitive growth ahead of the market, which Euromonitor forecasts will grow at a compound annual growth rate of 4% through 2025, which is faster than the 3% growth rate it has seen. between 2019 and 2021
“We’re well positioned to grow based on the latest consumer trends we’re seeing.”Close said. “Consumers expect ice cream to taste great, they’re looking for indulgent experiences, they’re looking for products that change their mood. And now, whatever the occasion, whether it’s a day out or sharing a moment with friends at home, we have brands that can really deliver against those trends.”|:
Unilever is also well-positioned to address growing demand for products that are healthier for people and the planet thanks to plant-based, low-carb and low-sugar innovations, Close said.
As the economy continues to tighten and consumers increasingly look for strong value products, Close noted that the company’s ice cream portfolio can deliver even in a recession, offering: “Affordable, affordable treats that will lift their spirits”and: “Get them out of the difficult situations they’re in.”|:
Market expertise, innovation capabilities will drive premiumization|:
In addition to monitoring emerging trends, Unilever plans to strategically build its ice cream business in 2023 and beyond on three key pillars: premiumisation, greater presence in emerging markets and expanding e-commerce and off-premises.
In terms of premium offerings, Unilever already has a strong presence in Magnum and Ben & Jerry’s, which currently account for around 35-45% of its ice cream sales, but it plans to expand to more than 50% by 2025, it said. is Close. .
“These are proven brands with a strong track record of growth, and we’ve invested in more capacity and marketing expertise and innovation capabilities.”he said.
For example, he noted that last year the company released Ben & Jerry’s Sundaes, which “puts a spin on the pint experience”On another layer of ice cream made with Fairtrade ingredients, adding whipped cream on top of the ice cream in chunks and swirls. The new four-flavor lineup also allows the brand to tap into a slightly different audience than Ben & Jerry’s has traditionally attracted, Close added.
Other new premium offerings from other brands include the latest releases from Cornetto Soft, which Close says “It really showcases our superior design ability and being able to bring that fresh-from-the-fridge soft serve experience into the home.”|:
Unilever’s ability to offer more premium innovations is based on the deep knowledge of its more than 500 ice cream scientists, who know more about microstructure management than anyone else, according to Close, and the company’s more than 100 patents in formulation, assembly, packaging, systems around and masterful mixing.
A “hard-coded model” for expanding into emerging markets|:
The second pillar of Unilever’s strategy to expand its leadership in ice cream is increasing its presence in emerging markets, which currently account for just over 25% of the company’s business, but Unilever hopes to expand to more than 40% by 2025.
To do this, Unilever has a “A clearly coded model proven in multiple markets”That includes relying on premium offerings to shore up margins while offering products to consumers at every price point, including entering the market so it can compete directly with smaller eateries such as snacks and soft drinks.
“That repeatable model is underpinned by a low-cost manufacturing base in emerging markets and deep experience with a frozen route to market.”Close added.
Ice cream on demand – anywhere, anytime|:
The third pillar of Unilever’s growth plan is to improve its frozen routes to market expertise by digitizing its core channels, but especially out-of-home and e-commerce.
“Out of Home, we work with over 3 million shopkeepers. We already have proof of concept that leveraging digital capabilities, such as automated image ordering and replenishment, is driving their growth and improving our service to those shopkeepers.”Close said.
He added during the strategic period. “We will invest heavily in digitizing our relationship with them for growth and efficiency.”|:
Unilever also plans to expand its ice cream NOW initiative, which initially launched in 2017 with a single freezer at a Deliveroo store in Amsterdam and made €400 million in 2022 to €1 billion by 2025. For this, the company will expand the offers. Through food delivery, quick service and its strategic partners, Clowes said.
While each of these pillars includes aggressive targets, Close said he is confident Unilever can achieve its ambitious goals because they are each; “based on more domain expertise”this will allow it to take advantage of the full value chain.
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