With the hot discussion of consumers and the high temperature in various places for days, China’s ice cream market has become more lively this year. Snack generation noticed that recently, Oreo, a subsidiary of snack giant Yizi, launched two flavors of ice cream in a low-key way in e-commerce. Although it is the first time for Oreo and ice cream to form CP, the brand has appeared in the form of cross-border cooperation before, and this time it is sold “alone”.
。 However, to make consumers pay, they have to come up with their “unique skills”.
Today, Yizi China said in reply to snack generation that the above products are new Oreo ice cream developed locally and have been listed in e-commerce and key customers.
First, let’s see what Oreo ice cream looks like. Xiaoshidai saw on an e-commerce platform that Oreo launched vanilla and strawberry ice cream, of which Oreo biscuits account for 14%. At present, seven boxes of 70g of the new products are produced by “Xingzhou kangpaike (Hubei) food and Beverage Co., Ltd.” and the delivery price is about 89 yuan, which is limited to Jiangsu, Zhejiang and Shanghai. According to the data, the parent company of the company is Golden State foods, whose main business is to produce soft ice cream, beverages, crispy cans, McDonald’s sauce, KFC milk paste and other products.
From the appearance, the above ice cream also has a strong Oreo color. In addition to the main color of the package, which is the same as Oreo’s iconic blue, the cup body is also printed with black round biscuits in many places.
For this new product, many buyers gave comments on e-commerce about “strong milk flavor” and “rich taste levels”. However, some consumers said on social platforms that “Oreo chips have a strong sense of existence”, but compared with wheat whirlwind ice cream with Oreo cookies, it is “small bowl and expensive”. In fact, many people may not be unfamiliar with Oreo ice cream. In addition to the relevant products of McDonald’s, KFC and other catering businesses, covedo has also launched several co branded ice creams with the brand. In addition, Oreo biscuits are also common ingredients in homemade ice cream. Therefore, Oreo is quite “pushing the boat with the current” this time: these applications can more or less lay a foundation for Oreo to sell ice cream alone. Yizi China pointed out to xiaoshidai that the new product was launched by “deeply studying industry trends and combining consumer insights”. “As one of the leading snack brands in China, Oreo has a high penetration rate and a deep consumer base.” Yizi
At present, China is the second largest market for Oreo. In June this year, Dirk Van de put, CEO of Yizi, revealed that at this stage, Oreo is a brand with nearly $4billion (about 26.838 billion yuan), 60% of which comes from the United States and China. According to the foreign news reviewed by snack generation, in the United States, the largest market of Oreo, the brand also launched a number of its own ice cream this year, including sugar cones and popsicles coated with Oreo biscuits, sandwich ice cream like “enlarged Oreo”, and ice cream cups similar to Chinese new products. The company said at that time that the new product line belonged to brand extension. “We have been looking for fun ways to reconstruct this classic biscuit, and we are happy to carry out Oreo innovation in the field of freezing (dessert).” Justin Parnell, who was then Oreo’s U.S. head, said.
In China, not only Yizi, Mars and Nestle are also promoting their brands to cross into the ice cream industry. They basically choose brands with chocolate or milk genes that can naturally integrate with ice cream. The brand itself also has a certain popularity, which helps to pry the market more easily. For example, Nestle China, which already has a large ice cream business, has brought more “sweet” brands into the market. Last year, Nestle chocolate brand Qiqiao introduced ice cream products to China through import. This year, Nestle Weihua chocolate brand “crispy shark” launched a sweet cone, and plans to launch a new dessert ice cream product that uses the American century old brand “Eagle mark condensed milk” as the raw material. Jiang Nini, senior vice president of confectionery and ice cream business in Nestle Greater China, once revealed to the snack generation that when considering cross-border cooperation in ice cream, the company first targeted brands with sales of more than 1billion yuan. “For Nestle, a big advantage is that in addition to ice cream, we also have many high-quality brands, which are very suitable for cross-border. 1+1 must be greater than 2”.
Compared with other giants, Mars is catching up to cultivate ice cream as a new local business. In 2020, the three chocolate brands of Mars Wrigley: dove, Snickers and Matthias entered the ice cream field in the Chinese market for the first time. At first, all products were imported from Europe. Then, due to “good sales feedback”, Mars Wrigley plans to spend hundreds of millions of yuan to introduce the ice cream production line in the Chinese market for the first time. According to the market news obtained by xiaoshidai, its first ice cream production line in China is expected to be trial produced in Guangzhou in the second half of this year. Larry Feng, President of Mars arrow China, once told snack generation that the local production line can respond more timely to the innovative needs of Chinese consumers for ice cream products and promote ice cream products from first tier cities to more regions. Ice cream can also complement the chocolate business. “Summer is relatively the off-season for our chocolate sales, but it is the peak season for ice cream, which is a perfect complement.”.
In terms of Yizi, the company has also had many cases of cross-border ice cream abroad, including chocolate brands miaoka, Cadbury and TOBLERONE. However, unlike Nestle and Mars’ separate trading, Yizi more often uses the way of authorizing the brand to a third party.
For ice cream, Yizi has not disclosed much information to the public at present. But it can be expected that Yizi China may not rush into ice cream in the short term. Judging from the low-key new and temporary regional sales, Oreo ice cream is now more likely to be in the stage of testing the market response. In addition, if you want to compete with a group of ice cream “big factories”, Yizi’s advantages in supply chain, channels and so on are not obvious. Since this year, it has launched Oreo’s own ice cream in the United States and China, perhaps more out of consideration of innovation and broadening the border for its main business, rather than starting a new business. In May this year, Yizi said at the 2022 investor day event that its long-term goal was to bring 90% of its revenue through chocolate and biscuits (including baked snacks), and decided to continue to “buy buy buy” and expand its influence in chocolate, biscuits and baked snacks.
Among them, the cross-border of chocolate and biscuits, such as baked snacks, is regarded by Feng Pude as a major growth opportunity for Yizi.
On the one hand, in consumer cognition, the boundary between biscuits and baked cakes is blurred, which makes Yizi have “innate advantages”. On the other hand, the selling price and profit of bakery products are higher, and the market size and growth rate are very close to cookies, which means that Yizi “has almost doubled its opportunities”. In addition, baking cakes can create synergy for Yizi chocolate, including taste, taste and brand value creation.
In China, neighboring categories are also regarded as the “third driving force” for the growth of Yizi. Under this strategy, Yizi China signed and reached a strategic cooperation and investment agreement with Enxi village industry, a roaster, last year to make minority equity investment in Enxi village industry. This is the first time Yizi has invested in Chinese local food enterprises. The cooperation will help them expand their product portfolio in the Chinese market and develop low-temperature and short shelf-life baking products of Yizi’s brands.
“This category (Note: refers to packaged cakes) is very large, and the current growth rate has reached a high single digit.” Fan Ruisi once “spoiled”, and the two sides will launch a series of Oreo cakes from this year. Today, xiaoshidai learned from Yizi China that the above Oreo cake series will be on the market in the near future. “We also look forward to the launch of Oreo cake, which can further enrich consumers’ snack choices and meet consumers’ needs in different scenarios.”.