Provenance and promotions are key drivers in the ice cream market.
Despite the unreliable weather, sweet-toothed Scots are a nation of ice cream-lovers.
“Ice Cream is a popular category in Scotland,” claims Andrew Niven, Strategic Market Intelligence Manager at The Knowledge Bank.
“We overtrade within the UK by around £12m in sales value,” he states, basing his insights on Nielsen Total Coverage – 52 w/e 05 October 2024 and comparing Scotland’s population to the rest of the UK. “This indicates a healthy demand that Scottish retailers can tap into if they stay abreast of emerging trends and consumer behaviour.”
Consumers in Scotland are especially attracted by locally produced products, observes The Knowledge Bank. “Many view them as higher quality and believe it supports our economy,” says Niven.
This is good news for Mackie’s, which recently reported a 7.2% increase in turnover to £22.3m for the year ending May 2024, as well as a 67% rise in profit before tax to £2.24m. The company experienced significant growth across its product lines, with ice cream sales rising by 10%.
The well-established Aberdeenshire ice cream was purchased by around 20% of households in Scotland, and 8% (up from 6%) of all UK households, making it the fifth-most popular ice cream brand in the UK and the most popular family-owned producer [KantarWorldPanel].
Spar Renfrew stocks a range of Mackie’s flavours, including Honeycomb, Raspberry Ripple, Vanilla and White Chocolate & Raspberry variants, as well as the Mini Collection featuring four 120ml tubs. “Mackie’s does well on Snappy Shopper,” observes store manager Angie Gibson. “We often have it on a deal.”
Promo power
Niven claims that in-store promotions are crucial in driving ice cream sales. “Nearly half of all spending on handheld dairy ice cream and around 40% of bulk tub sales in the UK are driven by in-store activity [Nielsen Total Coverage – 52 w/e 05 October 2024],” he says. “Retailers can leverage this through multi-buy discounts on single-serve items, catering to the growing number of shoppers choosing multipacks for their range of flavours and portion control.”
Spar Renfrew regularly includes ice cream in promotions across bulk tubs and handheld lines. “CJ Lang ran a promotion where if customers buy two Goodfellas pizzas, they get a tub of Ben & Jerrys for free,” says Angie. The store has also run deals across Chicago Town pizza with Mars and Snickers multipacks.
In the independent convenience channel, Mars has seen value sales of its multipacks increasing by 89% and total sales rising by 25% over the past three years [IRI Ice Cream Symbols & Independents 52wk periods to 2.11.24].
What’s new?
This year, Mars Wrigley has extended its multipack range with the launch of Snickers White Ice Cream bars in packs of four. “Snickers has long been a hero product of our range in the UK and the white chocolate variant has proved extremely popular in other European countries,” says General Manager at Mars Chocolate Drinks and Treats, Kerry Cavanaugh. “In Germany, the Snickers White Ice Cream bar accounts for 70% of the original Snickers ROS [Germany MAT Total Market to June 2024].
“In the UK, 13% of all multipack ice cream sales are white chocolate variants [UK IRI Ice Cream YTD June 2024 Chocolate MP rankings] and with the popularity of Snickers, we see a great opportunity to appeal to both ice cream and white chocolate fans with the launch of Snickers White Ice Cream bars in 2025.”
