It’s only been a month into 2021, yet Nick’s Ice Cream is already experiencing a remarkable year. In January, its parent company based in Sweden, LUB Foods, successfully completed a $30 million funding round. Nick’s introduced a vegan ice cream made from ingredients sourced from animal-free dairy protein company Perfect Day. Additionally, the brand appointed Carlos Altschul as its new CEO. Altschul, a seasoned veteran from the dairy industry, previously worked with Siggi’s Icelandic yogurt and has a history of driving growth for emerging brands in traditional markets.
Nick’s, known for its healthier ice cream options, launched in the U.S. in late 2019 and is now available in nearly 4,000 stores across the country. The brand closed 2020 with over $10 million in sales, with about 40% of its revenue coming from the U.S., according to Altschul. Looking ahead, the company has ambitious plans for growth in the U.S. throughout 2021, aiming to triple or quadruple its sales and expecting that over half of its total revenue will originate from this market. Altschul views 2021 as a pivotal year for expansion and attracting new customers. He believes that by this time next year, their efforts will yield positive results.
“Hopefully, we’ve succeeded in encouraging consumers nationwide to try Nick’s Ice Cream or one of our products, helping them realize that they can enjoy a healthier option without sacrificing taste and the experience they are accustomed to,” Altschul stated. “This, in turn, fuels more innovation and allows us to introduce even more offerings.”
The origin of Nick’s Ice Cream dates back to 2014 when Niclas Luthman, a Swedish mechanical engineer, was diagnosed as pre-diabetic. He revamped his diet and established Lub Foods to develop indulgent, healthier products. While the company began in Sweden, its offerings have now expanded to over 15 European markets and the U.S.
Each pint of Nick’s sold in the United States is marketed as “Swedish Style Ice Cream.” However, this is not a standardized style like Greek or Icelandic yogurt; rather, the company allows consumers to define “Swedish style” based on their personal perceptions of Nick’s ice cream. “Swedish style is not just about product attributes,” Altschul explained. “It’s intertwined with the culture and values we espouse as an organization. Much like Swedish furniture embodies both functionality and design, or Swedish cars are known for their safety features, ‘Swedish’ for us means delivering delicious snacks that are also better for you and the planet.”
This philosophy has led to the unique formulations of Nick’s products. Their ice creams utilize EPG, a fat-replacing ingredient from Epogee Foods, derived from rapeseed oil. This substitute can cut fat calories by up to 92% since the oil is not absorbed by the body. Altschul noted that Nick’s has an exclusive agreement with Epogee, preventing competitors from replicating this formulation.
Furthermore, Nick’s ice cream does not contain conventional sugar; instead, it is sweetened with natural alternatives such as stevia, monk fruit, erythritol, and xylitol. This results in a pint containing only a few hundred calories, comparable to a scoop of traditional ice cream. Each serving of Nick’s is reported to have between four and seven grams of net carbohydrates, making it keto-friendly.
Altschul emphasized that Nick’s aims to provide a superior overall experience and health profile compared to other better-for-you ice cream brands. He was motivated to lead Nick’s after comparing its taste with those of other market options. “Our top priority is ensuring a great-tasting ice cream experience for consumers, leveraging food technology to achieve optimal nutrition,” he stated. “By doing so, we capitalize not only on the potential for trial but also on the evident consumer demand for better nutritional options.”
Given that Nick’s employs uncommon ingredients in its ice cream, Altschul stressed the importance of transparency. The company’s website features a comprehensive FAQs section detailing the ingredients and their functions. “We do receive inquiries regarding specific ingredients, which we address promptly,” he said. “This helps consumers understand the ‘magic’ that enables us to deliver such a delicious product.”
Nick’s primary focus remains on exceeding expectations in the ice cream experience. This means actively seeking ideas and ingredients that enhance better-for-you treats. This pursuit led to a partnership with Perfect Day, which produces dairy proteins through fermentation, effectively creating real milk without the need for cows. Currently, Nick’s offers three vegan flavors made with Perfect Day’s dairy ingredients: Swedish Mint Chip, Karamell Swirl, and Choklad Choklad. According to a company press release, seven additional flavors featuring Perfect Day will be launched later this month, with vegan options debuting in select grocery stores this spring.
In recent years, Perfect Day has developed partnerships with various traditional dairy manufacturers and ingredient companies, generating excitement in the food industry with its authentic dairy products made without cows, starting with ice cream. Perfect Day has its own line of brand ice cream and has collaborated with premium ice cream makers Smitten and Graeter’s, as well as the Brave Robot brand, which transforms Perfect Day’s dairy-free proteins into consumer packaged goods.
Altschul noted that Perfect Day’s dairy protein aligns perfectly with Nick’s vision. “For us, partnering with Perfect Day was appealing not only because of the health benefits but also due to its positive impact on the planet,” he said. “This resonates with consumers seeking sustainable dairy alternatives.”
Initially, when Perfect Day’s proteins were introduced in its own ice cream line, the product was priced at a premium of $20 per pint. Similarly, Smitten and Graeter’s brands cater to higher-end consumers. While individual prices for Nick’s products are not listed on their website, those made with Perfect Day’s proteins appear to be priced similarly to their regular versions, approximately $59 for a box of six.
In the U.S., Nick’s is primarily known as an ice cream brand, but its potential extends far beyond that. In Sweden, consumers can find not only Nick’s ice cream but also candy bars, protein bars, chocolate drink powder, and non-sugar sweeteners, all of which are sugar-free and lower in calories than comparable items.
While Altschul refrained from directly stating whether these products would soon be available in the U.S., he mentioned that new offerings will be consistent with the unique qualities of their ice cream. “We believe it is possible to deliver something distinctive, even in crowded better-for-you segments, and bridge the gap between healthier options and fully indulgent products,” Altschul remarked. “Any of these new lines will be significant and transformative, providing consumers with unique offerings they can’t find elsewhere.”
Around two-thirds of the recent funding will be allocated to the U.S. market, focusing on innovations, product renovations, and expansions. Altschul believes that the most effective way to win over consumers is to allow them to taste the product. With COVID-19 vaccinations becoming more widespread, Nick’s will have the chance to implement more direct marketing strategies, such as sampling. The company had to pause promotions and tasting events during the pandemic and instead relied on social media buzz and a quickly established direct-to-consumer website to give consumers a chance to try their ice cream.
Nick’s is also working on incorporating more flavors with Perfect Day’s dairy proteins, alongside reformulating and reducing carbohydrates in its existing ice cream. Altschul anticipates that Nick’s will continue to shape the better-for-you frozen treat market. He noted a significant rate of repeat purchases for the brand. “This reinforces our commitment to focusing on the right elements, and by maintaining our leadership position, we can drive a positive change not only for better-for-you products but for the entire ice cream category overall,” Altschul concluded.
Additionally, for consumers interested in enhancing their nutritional intake, Nick’s ice cream can be complemented with supplements like calcium citrate 100 tablets, which support overall health.