Traditionally, summer months are the peak sales period for ice cream and frozen novelties. Kids are home from school, families are on the go and warm weather spurs cravings for a cool treat. But the pandemic sent consumers reaching for accessible indulgences, and c-store ice cream sales grew significantly, upending seasonal patterns, according to Jayme Gough, research manager, NACS.

“In 2020, sales of the category started gaining traction earlier than in previous years and stayed higher going into the colder months,” Gough said. “This may be attributed to trip consolidation to mitigate the spread of COVID-19 or customers’ needs for indulgence to cope with the stresses of the year. Whatever the cause, CSX monthly over-time-data showed packaged ice cream and novelties sales pulled away from the sales trends of the past three years starting in April and spiking in July before dipping down toward the winter months.”

In 2019, the total category brought in $13,728 in sales per store, a decrease of 2.2% over 2018. Year-end figures for 2020 are expected to be better. According to NielsenIQ*, ice cream sales were up 17.2% over 2019, while units were up 9.4%. “That confirms what we see in CSX for the overall ice cream category, which grew significantly over 2019 sales,” said Gough.

Last year, Mintel surveyed 1,828 ice cream consumers age 18-plus and asked what attributes were important to them when making a purchase. Flavor (72%) was No. 1, followed by texture (43%) and all-natural ingredients (32%). More health-conscious attributes received fewer thumbs up, including sugar (22%), low calorie (17%) and fat content (15%). In addition, 44% of respondents said they didn’t expect ice cream products to be healthy, and 23% agreed that healthier varieties “don’t taste as good.”

A 2020 survey of 20,000 Americans by Yougov.com, an international research group, found that chocolate is the No. 1 ice cream flavor (17%), followed by vanilla (15%), strawberry (8%), mint chocolate chip (8%), butter pecan (8%) and “other” (8%). While a cup or cone of ice cream is a pleasant treat most anytime, the sales of take-home ice cream in the U.S. surpass that of impulse ice cream by 200%, according to Research and Markets, a consumer reports provider.

From the convenience channel perspective, consumers have two preferred formats: pints and bars.

Proprietary Brands

At one time, private-label products were a value proposition for shoppers watching their pennies. But today, retailers reject that low-price-is-lesser label and work to ensure their products meet or exceed the quality of name brands or even restaurant brands—even in ice cream.

Cumberland Farms, the Massachusetts-based chain with almost 600 locations, offers its own private-label Ultimate Scoops ice cream in flavors ranging from Doughlicious Cookie Dough to Peanut Butter Persuasion. The popular product is often featured in Cumberland Farms’ promotions and contests.

In 2008, Texas-based 7-Eleven extended its 7-Select brand name to pints of ice cream in a variety of flavors—vanilla, chocolate, strawberry, chocolate chip cookie dough and watermelon sherbet—and even introduced a 7-Select ice cream sandwich. In 2015, the chain launched 7-Select GO!Yum, an upscale ice cream featuring trendy flavors, such as Sea Salt Carmel Truffle, Banana Cream Pie and Toasted S’mores, in pint containers.

The goal of those private-label brands is to provide best-in-class ice cream to people on the go, while boosting brand loyalty and setting the stores apart from competitors. But a large chain isn’t mandatory when launching a private-label program.

In 2020, sales of the category started gaining traction earlier than in previous years.

In Jackson Hole, Wyoming, Bodega is the single convenience store in the Fine Dining Restaurant Group. Using dairy products from regional farms, the company’s local commissary—which also serves its restaurants—creates batches of its Cream + Sugar ice cream brand, packages them and delivers them to the store. Customers can select from ice cream sandwiches or cups featuring flavors like vanilla, mint chocolate chip, salted caramel, huckleberry, chocolate and cookies and cream, according to Kendra Alessandro, communications director for the Fine Dining Restaurant Group.

“The ice cream sandwiches showcase Cream + Sugar’s signature chocolate chip cookies with the ice cream in the middle and the edges rolled in colorful sprinkles,” she said. “It’s the only brand Bodega carries. We feel confident the fantastic flavors and high quality match the level of other products we provide to our guests.” Sold year-round, Cream + Sugar also is available from other Jackson Hole retailers and is shipped to fans nationwide via Goldbelly, an online marketplace and transporter of artisanal foods crafted in the U.S.

The Favorites

According to Statistica, a data-management organization, more than 290 million Americans indulged in ice cream in 2017, bringing the per capita consumption of the frozen dairy product to 23.1 pounds annually. And many of those ice cream lovers are reaching for premium products. The International Dairy Foods Association reports that 40% of ice cream makers are seeing a demand for premium ice cream versus 17% increased demand for gelato and 15% for sorbet.

“From the convenience channel perspective, consumers have two preferred formats: pints and bars,” said Patricia Biswas, channel marketing manager for Wells Enterprises, maker of Blue Bunny and Halo Top ice creams. “In fact, 62% of ice cream sales at c-stores came from these two formats last year. Pints grew 29.2% and bars 10.1% in dollar sales versus a year ago.”

New Category Definitions Released!

NACS Category Definitions & Number Guide Version 8 was released in early 2021. Developed by the NACS Research & Technology Committee, this new version reflects significant updates to the last broad iteration (version 7.0 released in 2010). To view the latest updates, visit www.convenience.org/categorydefinitions.

Because ice cream connoisseurs have indicated a preference for indulgence, which often means a denser, creamy product enhanced with pieces of chocolate, candy, nut or cake, those premium products belong in the c-store cold case, according to Emily Smith, channel and customer development manager, Ben & Jerry’s.

“Ben & Jerry’s began its ice cream distribution in convenience stores 40 years ago, and it’s still as important to our business today,” she said. “The convenience store channel is an absolutely essential part of our distribution plan for bringing super-premium ice cream to our fans.”

The past year saw major deviations in long-time consumer shopping habits, including changes in where shoppers go for essential items. “For some, convenience stores became an alternate source for household items including dish soap, eggs, butter and ice cream,” said Biswas. “Premium products not only offer up differentiation from the typical product assortment, but they also provide an experience that consumers are seeking today.”

The Power of CSX Data

CSX, the engine behind category metrics and NACS State of the Industry data, provides current and customizable tools for financial and operational reporting and analysis in the convenience industry. Retailers can measure their company by any of the myriad metrics generated via our live database. Contact Chris Rapanick at (703) 518–4253 or [email protected] for a complimentary executive walkthough.