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Research highlights top ice cream vendors, market trends in play

May 11, 2016

Consumers are screaming for ice cream and that's a good economic trend for national ice cream vendors, including QSRs and fast casuals that serve ice cream. The downside is that such consumer demand will require vendors to be more flexible, creative and innovative as market changes are happening faster than ever.

The insight comes from new Technovio research data, which also lists out the top national ice cream vendors.

"The changing economic conditions are affecting customers' living standards and can also affect vendors' businesses," stated Vijay Sarathi, Technavio lead analyst for food research, in an announcement. He said market competition evolves around everything from price and quality, to distribution and promotion.

The study revealed increasing competition will lead to reduced prices, which is good news for consumers but not such great news for vendors as it will negatively affect margins and market growth. The study also predicted that technological advances could very likely render existing or even future products either obsolete or uneconomical.

Six ice cream vendors topped the list of 18 prominent players in the market, according to the Technavio report:

• Ben & Jerry's:This entry could be a little deceiving since this Vermont-based company is actually a subsidiary of Unilever, which also made the list. Ben & Jerry's produces ice cream, yogurt and sorbet for groceries, its own franchise shops and other outlets in 35 countries.
• Blue Bell Creameries:This Texas-based company makes ice cream and distributes it through its own fleet of refrigerated vehicles to the southeast U.S., although it has a wider geographical presence with 63 distribution hubs and products placed in 23 states.
• Nestlé USA: This subsidiary of the Swiss company of the same name has 25 production facilities in the U.S., employs 51,000 people in the U.S. and nets about $26 billion in sales nationally. Its brands include Edy's, Haagen-Dazs, Skinny Cow, Wonka, Nestle, Dreyer's and Frosty Paws.
• Turkey Hill: This Pennsylvania-based concern has products in all but one state and is seen in the research as having “significant growth opportunities.” Turkey Hill also makes fruit drinks and teas, and just opened a new $30 million warehouse that doubles its refrigerated storage space.
• Unilever USA: Although Ben & Jerry's is a subsidiary of this brand, Unilever USA, also stands over ice cream brands like Magnum, Talenti, Fruttare, Good Humor and Klondike. It also makes and sells food, home and personal care products and covers 400 brands. Unilever is headquartered in London, with Unilever USA employing more than 11,000 people.
• Wells Enterprises:When you see popular brands like Blue Bunny, Bomb Pop, and Weight Watchers, you're actually seeing a product of Wells Enterprises. Aside from ice cream, it also sells frozen desserts and novelties typically sold through convenience and club stores, mobile vending trucks and food service settings like schools and hospitals.