Ice Cream and Frozen Desserts in Norway

PROSPECTS

Weather conditions continue to drive volume sales

Milder weather during the spring and autumn for most of the review period boosted volume sales. In 2017, warmer weather in the central part of the country boosted sales in the area in July and a warm September, especially in the southern parts, which somewhat helped offset an otherwise gloomy summer.

Healthier ice cream displays most dynamic growth

Ice cream has survived relatively unscathed from the health and wellness trend compared to many indulgence products. However, the category has experienced strong demand for healthier options, mainly frozen yoghurt and sorbet, which Norwegians consider healthier as they tend to contain fewer calories than standard dairy ice cream.

Ice cream unaffected by rise in sugar tax

Although ice cream is a sugarised product, it was unaffected by the increase in sugar tax at the beginning of 2018, and any amendments to the sugar tax over the forecast period will have no impact on the performance of ice cream and frozen desserts. However, the tax increase was heavily criticised and some government parties have already suggested that an investigation into the sugar tax is needed in order to address the issue that certain products, such as sugar free, have been unfairly taxed.

COMPETITIVE LANDSCAPE

Diplom strengthens leading position through acquisitions

Diplom Is, a fully-owned subsidiary of domestic dairy giant Tine SA, continued to lead value sales of ice cream and frozen desserts in 2018. However, despite increasing its value sales throughout the review period, despite the very poor summer of 2015, the company lost value share to its main competitor Hennig-Olsen and smaller niche and premium players over the review period.

Hennig-Olsen gains value share with wave of new product launches

Hennig-Olsen gained ground in terms of value share for most of the review period including 2018. The success is partly attributed to a widening of its distribution network, but the primary engine of growth is a high degree of product innovation with several new launches being well-received by consumers.

Dairy giant enters ice cream with Icelandic Skyr variant

While ice cream witnessed a number of new brand launches, mainly from Diplom Is and Hennig-Olsen, perhaps the most interesting launch in 2018 came from a new entrant. Q-Meieriene, the second largest dairy player in Norway, entered the category in May with a bulk and multi-pack dairy ice cream range called Skyr.

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