Sweet serendipity
The firm doesn't disclose the details of its proprietary formula, which it hopes to be patented. But the company does explain that naturally sweet potato starch (in the form of potato flakes) takes the place of sugar and partially replaces butterfat, so the ice cream contains just 90 calories per 4-ounce serving. The potato flakes also help provide the creamy texture and mouthfeel of regular ice cream.The upsurge in dessert offerings demonstrates more than the effect of a strong countertrend, however. Many observers believe consumers alternate between conscious self-indulgence and self-control.Reeds Dairy, Idaho Falls, Idaho, is expanding distribution of Al & Reeds All Natural Ice Cream, a reduced-calorie product that substitutes potato starch for sugar.But the company isn't taking novelty sales for granted, either. Dan O Strong, regional sales manager, counts some 125 companies now making novelties. "Every year some come in and some go out. But from Memorial Day to Labor Day, it's a constant battle for space."Perhaps the ultimate convenience dessert released last year was Mousse Eclat from Gourmet International Foods (Chicago). Available in low-cal and regular, dark and white, the chocolate mousse is traditional in every aspect except its packaging--an 8-oz. aerosol can.Baking mixes have shown steady market growth since 1986, having grown from $1.29 billion to $1.35 billion. Frozen bakery food sales rose from $1.1 billion to $1.26 billion. Both sub-categories would include non-dessert items, frozen bread doughs and mixes, for example, but other tracking numbers hint desserts are responsible for much of the growth. They also show the rising popularity of quick-fix splurge items.According to Nielsen Marketing Research, retail novelty sales reached $1.14 billion in 1988, down 2.6 percent from the previous year. That's compared with increases of 7 percent in 1987, 12.6 percent in 1986 and 14 percent in 1985.And Eskimo Pie Corp., Richmond, Va., which introduced the first sugar-free chocolate-covered ice cream bar last year, is hoping to attract a new breed of health-conscious consumer with its Light Eskimo Pie bar, which has no tropical oils.Others, such as Dove International, Burr Ridge, Ill., are cutting fat to reduce calories. Its new Dove Light bar, introduced in March, has one-third less calories than its regular bar but is still an upscale product with a price tag of $2.99 for a box of three.Klondike, which has reaffirmed its long-term commitment to the category by spending $5.8 million to expand its Clearwater plant and dedicated $2.8 million to a cold storage facility in Pennsylvania, is banking on the growth of the light segment with its new aspartame-sweetened Klondike Lite bar.Reed started with a bag of potato flakes and tried dozens of formulas before coming up with anything that even resembled ice cream. Then he continued experimenting for just the right consistency. Eight months later, after numerous attempts at just getting the mix to run through the equipment, Reed found a formula that worked. By accident that formula included half the refined sugar usually required, but the potato flakes had converted into a natural fructose sweetener. And that gave Reed the idea to make the product without refined sugar.With expanded distribution and the opening of additional dipping stores, Reed sees sales doubling by summer.Overall, new product offerings increased only 3.7% in 1988, compared to a 26% rise measured between 1986 and 1987. Desserts, however, was one of several active sub-categories during an otherwise subdued new product development year. Food manufacturers responded with more elaborate offerings for the bakery rack and freezer case and with more convenience for the "do-it-yourselfer."Ice cream made from potatoes was just the beginning. The company soon expanded into soft-serve and hard-pack yogurt, soft-serve ice cream and fruit sorbet under the Al & Reeds label. None contain refined sugar, artificial sweeteners or preservatives. Reeds Dairy also produces a 16 percent butterfat/40 percent overrun ice cream under the Reeds Prestigious brand name.Others agree that the category remains strong. The sales volume of the category shows consumers are still hungry for novelties, Braff says. "After the shakeout, what's going to be left is a half-dozen strong companies with a $2 billion franchise," he says. For consumers, that could mean fewer products to choose from.Haagen-Dazs Snack Bars, which contain 2.9 fluid ounces compared with 3.7 ounces for regular Haagen-Dazs bars, are aimed at the growing number of on-the-go eaters. "The appeal is convenience, portability and fun," Bailey says.Sweetie Bear Bakery in Blue Island, Ill., offered Little Sweeties butter vanilla bears in collectible tins, and Maurice Lenell Cookies (Chicago, Ill.) packed its Strawberries 'N Cream Cookies in a 12-oz. box resembling a fresh strawberry shipping tray. Jack & Jill Ice Cream (Philadelphia) released Heath Choco Taco, a candy bar-flavored ice cream in taco-shaped sugar cones.* By this decade's end, perhaps only the consumer's urge to splurge will have had a more telling impact on the grocer's shelf than food companies' urge to merge.The Fudge-tastic sundaes, which are General Foods' first ice cream novelty, take advantage of a new technology that keeps the fudge center of the bar liquid and keeps the ice cream portion of the product stable at 0 degrees F instead of the usual minus 20 degrees F. It took the company about two years to come up with the special formula.During that time, the frozen novelty category lost much of the glamour appeal that had drawn in dozens of new players, notes consultant David Braff of Braff & Co., New York. As competition intensified, retailers took advantage of the situation and raised their slotting allowances. "General Foods strengthened its commitment to novelties, but other companies got burned and go out," Braff says.Cookies as a sub-category accounted for the largest portion of new dessert offerings, with 307 releases in 1988. During 1988, according to Gorman's New Product News, U.S. food companies released 135 new cakes and 212 new baking ingredient items.Microwave dessert baking mixes, for example, posted 133.6% growth during the 52 weeks ended 12/30/88, and microwave frosting mixes gained 20.6% over the same period. Microwave frozen sweet goods gained 62%, and microwave frozen pastries doubled market share. Microwave frozen pies lost 26.5%, and dessert and ice cream toppings finished 1988, having surrendered 56.1% of market recorded one year earlier. Nevertheless, that narrowly defined dessert category did contribute a smattering of new items.The company introduced 4-ounce Peace Pops, chocolate-coated ice cream bars in four Ben & Jerry's flavors, last summer and a chocolate-flavored line extension of its Brownie Bar this spring. Both novelties are made with the company's superpremium ice cream, and that makes them distinct from other novelties, Greenfield says. "Traditional ice cream pops are not as exciting as our flavors," he adds.
PAUL BUSH, Senior Editor/Automation and Operations Analyst
Author: Paul Bush
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