The Magnum Ice Cream Company, which owns brands including Magnum and Ben & Jerry's, has accelerated its focus on wellness-oriented offerings, citing strong growth in frozen Greek yoghurt brand Yasso.
Yasso has delivered average annual growth of around 20% over the past five years, while the group's other brands like Breyers CarbSmart and Popsicle Sugar-Free are particularly popular with GLP-1 consumers, Vortsman said.
Vortsman said consumers were increasingly looking for products that combined indulgence with attributes such as higher protein, lower calories and more controlled portions. Magnum's brands make up a 26% share of the $2.2 billion U.S. wellness and functional ice cream segment.
"We are accelerating our wellness innovation funnel disproportionately faster than we have in the past," she said.
Around 16 million Americans are taking GLP-1 medicines, according to Boston Consulting Group, with the number expected to climb significantly by the end of the decade. Food companies from Nestle NESN.S to Conagra CAG.N have been reformulating products as consumers seek more protein, fibre and nutritional benefits.
The challenge for ice cream makers is preserving ice cream's appeal as an indulgence while adapting to shoppers who increasingly weigh nutritional value alongside taste.
Ferrero's Halo Top brand, which aims to offer the same ice cream experience with half the calories of leading competitors, says it has delivered double-digit percentage sales growth over the last two years, compared with around 2.5% for the wider market, according to Circana, a Chicago-based market research firm.
Rather than shrink its serving size, Halo Top said in emailed comments that it prefers to pair "craveable flavours with a good source of protein and fewer calories than traditional ice cream".
"Consumers have stopped giving indulgence a free pass," said NielsenIQ's Vice President of Food Thought Leadership Chris Costagli.
Dollar sales in the U.S. ice cream market rose about 2.8% over the past year, according to Circana. But NielsenIQ data showed super-premium products were the only segment to post volume growth.
The wellness trend is not confined to the United States, raising questions about how ice cream brands stay relevant as eating habits evolve globally.
Glacier, one of Europe's largest private-label producers, says demand is growing for smaller portions, premium products and lower-calorie ice lollies that fit broader health and wellness goals.
"If you are on GLP-1, if you're going to have a treat, you want it to be a really brilliant thing," said Glacier executive director Matt Frost. "The thing that we will be absolutely obsessed about is taste and repeat purchase because there's no point in nudging customers into better-for-you foods if they feel they're compromising on taste because they'll stop."
(Reporting by Alexander Marrow; Editing by Matt Scuffham and Elaine Hardcastle)
((alexander.marrow@thomsonreuters.com; +447393253522))
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