Dive Brief:
- Ben & Jerry's owner The Magnum Ice Cream Company will sell its products at transit hubs and entertainment venues in a new partnership with beaded ice cream maker Mini Melts.
- Mini Melts will operate Magnum-branded vending machines nationwide, which will offer a curated assortment of products. These include Mini Melts in addition to Ben & Jerry's pints and Good Humor novelty bars.
- The agreement, set to launch this summer, brings Mini Melts to new locations and advances Magnum's out-of-home growth strategy by targeting consumers in high-traffic locations such as entertainment destinations, transit hubs and retail sites.
Dive Insight:
Magnum, which spun out from parent company Unilever last December, is taking on Dippin' Dots as it looks to capture consumers at malls, sports arenas or other destinations where they're more likely to treat themselves to an indulgence.
Mini Melts began as the U.K. competitor to Dippin' Dots. It has found a following in the U.S. by prioritizing convenience stores, zoos, aquariums and entertainment establishments like Dave and Buster’s, the same type of locations where Dippin’ Dots is sold.
The partnership with Magnum will leverage Mini Melts' experience with frozen vending infrastructure and also help the beaded ice cream maker expand its own reach. Mini Melts currently operates around 35,000 locations nationwide, according to a release.
"This partnership is an important step in expanding Magnum Ice Cream's ability to reach consumers beyond the traditional aisle," Bryce Carroll, Magnum's senior commercial development manager, said in a statement. "Mini Melts gives us the scale and footprint to extend our brands into everyday moments and unlock new consumption occasions across the country."
Even as consumers prioritize health and wellness, they're not abandoning the occasional indulgence. Consumers are more likely to buy an ice cream or another dessert when they're already treating themselves to an experience, such as a movie or a visit to an entertainment destination.
Dippin' Dots owner J&J Snack Foods previously told Food Dive that trends like GLP-1s or the "Make America Healthy Again" movement haven't affected sales in its away-from-home business because products are tied to experiences.
Magnum is hoping to capitalize on those same tailwinds by reaching more consumers outside the grocery store. The company reported 4.5% organic sales growth in the first quarter, with ice cream demand strong in the U.S.
Peter ter Kulve, Magnum's CEO, said in an earnings call last month that "our innovation is shifting to occasions and formats."
New Ben & Jerry's ice cream bars were well received despite the brand recording flat sales in the quarter, Ter Kulve told analysts. The company is leaning on innovation for on-the-go consumption, with Ter Kulve saying "it is very difficult to eat a Ben & Jerry's pint when you are driving a car."
"We [are taking] Ben & Jerry's now very forcefully and rigorously out of the pints in other formats that unlock new occasions," he said.
