Economics

Protein or pickled garlic? What's new in ice cream

There's a constant battle in ice cream to come up with new flavours and to keep costs down.

**From Protein to Pickled Garlic: The Latest Innovations in Ice Cream**

At Magnum's research and development hub near Bedford, UK, the world's largest publicly traded ice cream manufacturer is constantly refining existing recipes and pioneering new ones.

A striking sight at the facility is a glow-in-the-dark ice lolly, emitting a pale yellow light. This product, launched in Ibiza and aimed at clubbers and festival-goers, incorporates vitamin B2, a naturally luminescent ingredient that glows under UV club lights.

While a glowing treat might seem like a novelty, the ice cream industry is a serious business where innovation is key to maintaining a competitive edge. The market faces intense competition from major players like Froneri (owner of Häagen-Dazs) and Baskin-Robbins, the world's largest ice cream specialty shop chain, as well as a growing number of smaller artisan producers.

The industry also grapples with an inherently unpredictable market, marked by fluctuating commodity and energy prices. "We've had five years of price volatility impacted by war in Ukraine, Covid, the cost of living crisis. We've now got the Strait of Hormuz. We've just been in this constant state of instability when it comes to pricing," states Georgia Rose, principal analyst at Kantar Retail IQ, a global market research firm.

These price shifts impact various aspects of ice cream production. Rose explains, "Manufacturers have been hit by higher prices for dairy, cream, eggs; the ingredients that make ice-cream bases. And then you've got the flavours; vanilla, chocolate, sugar, fruit. And something that often gets forgotten is the cold-chain energy costs and storage."

**Magnum Prioritizes Lowering Refrigeration Costs**

The Magnum Ice Cream Company, which spun off from Unilever last year and owns brands such as Cornetto, Twister, Solero, and Magnum, is actively addressing rising costs. As the world's largest stock market-listed ice cream company with a market capitalization of approximately £8 billion, it possesses the resources to invest in innovation.

Refrigeration is a key area of ongoing development. Magnum owns three million fridges globally (designed and built by a third party), some of which are equipped with cameras that upload images to data centers. AI analyzes these images to identify products and, using depth-recognition, estimates sales and determines when fridges need restocking. This leads to more efficient inventory management and targeted supplies.

Furthermore, the fridges themselves have been made more energy-efficient. Zbigniew Lewicki, Magnum's chief research, design & innovation officer, emphasizes that such innovations are not merely beneficial but crucial to the company's profitability. "If you look at the freezers we had in 2010, the ones we have now are 40% more efficient. Will we ever be able to absorb every shock? I can't say, but it's definitely one way of making the business long-term resilient."

**Asia Leads Ice Cream Innovation**

While fridge technology may not be apparent to the average consumer, new products on shelves certainly are. Lewicki notes that Asia is a significant source of innovation. "The inspiration and trends come from the East. There's an incredible intensity of innovation in places like Japan, Korea and China and the markets are growing and expanding in a phenomenal way."

One product inspired by Lewicki's travels is Volcanics, launched in the UK and Europe. It features a chocolate shell with biscuit pieces, layers of chocolate and vanilla ice cream, and a "four-dimensional" caramel lava center.

Neil Yan, a Shanghai-based market trends researcher for consumer and sensory specialists MMR, concurs that Asia is now at the forefront of ice cream innovation, attributing this to deeper cultural factors. "In China, ice cream is no longer a niche story. It's not just for Instagram. It's not just a summer treat. It's a new centre of gravity, representing a part of Chinese people's lifestyle."

Yan adds that this influences the entire market: "[We are in] an era where everyone is experimenting with the flavours and the format, and blending it with what China, or the border term, Asian nationality, represents."

This experimentation extends to a wide array of flavors. "We have ham, pickled garlic, tahini, and stinky tofu and liquor. Just below my office is a shop whose speciality is vodka, foie gras and apple in one scoop," Yan reveals. "The reason why people are so excited and so experimental is basically the ability to think beyond just the flavours that have been offered by the Western market for the past two or three decades."

**Protein-Packed Ice Cream: A Recent Trend**

Innovation in ice cream isn't limited to flavors, according to Honorata Jarocka, associate director at market intelligence company Mintel. She highlights the growing popularity of products with added health benefits.

Protein, for instance, has moved from cereal bars and milkshakes into ice cream. "It's not only about building your muscles, it's more about satiety because with the GLP1 user movement, [incorporating weight loss drugs such as Ozempic and Mounjaro], people are drawn to products that are more filling. Protein is really an important factor and ice-cream is a great place to use that."

However, protein-rich ice cream often comes at a premium. David bars from US company David Protein, containing a substantial 20g of protein, cost $39.99 (£30) for a 12-pack, more than double the price of Magnum's Yasso frozen yogurt bars.

Despite the higher cost, these products have been successful, Jarocka notes, because consumers are opting for "high quality, smaller portions, and are able to maybe pay a bit more for products with extra benefits because they are spending less on grocery items overall."

Back in Bedford, Magnum researchers, aided by a robot named Eric, are fine-tuning their core product. Eric continuously collects data on ice cream, 24 hours a day, to help achieve the perfect chocolate viscosity for the ideal crunch on Magnum bars.

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