Once recognized by its slogan “the ice cream of the future,” Dippin’ Dots’ parent company, J&J Snack Foods, is anticipating a promising future for this beloved beaded frozen treat. Although the 35-year-old brand has shifted from its original tagline to “Taste the fun,” a senior executive from J&J indicated that there is still ample opportunity for Dippin’ Dots to grow its sales by enhancing its presence in current retail channels and expediting innovation. “We have a lot of opportunity in front of us,” said Lynwood Mallard, J&J’s chief marketing officer, in an interview. “We’ve only just begun.”
According to J&J, Dippin’ Dots generates “a little under” $30 million in sales each quarter. The brand is experiencing double-digit growth, driven by the popularity of flavors such as Cookies ‘n Cream, Rainbow Ice, and Icee Cherry ‘n Blue Razz, with over 70 million servings sold in the past year. Founder Curt Jones originally utilized liquid nitrogen in the late 1980s to flash-freeze animal feed before applying the technology to ice cream, leading to the creation of Dippin’ Dots. Last year, J&J acquired the brand for $222 million, enhancing its portfolio with a strong consumer brand and a profitable, expanding business. At the time of acquisition, J&J lacked a substantial ice cream line, and Dippin’ Dots helped grow its frozen novelty category.
Dippin’ Dots boasts a remarkable brand recognition rate of 97%, significantly outpacing its competitors, as noted by Mallard. Other key metrics show that 91% of consumers intend to purchase Dippin’ Dots soon, while 95% would recommend it to others. In the U.S., Mini Melts serves as the brand’s primary competitor, focusing on entertainment venues like Dave and Busters, zoos, and aquariums, with sales exceeding $50 million and a 35% annual growth rate, according to Mini Melts’ CEO.
Dippin’ Dots is especially popular at sporting events and amusement parks. Although it is available in about 25% of movie theaters and family entertainment centers, there is significant potential for expansion in these areas, according to Mallard. J&J is exploring collaborations with venues that already offer its other brands, such as Icee, Superpretzel, and ¡Hola! Churros, to include Dippin’ Dots as well. “It’s an easy conversation to have,” Mallard stated. “As we evolve and get better at cross-selling, Dippin’ Dots is a key component of that portfolio story.”
J&J also sees significant potential for Dippin’ Dots in convenience and grocery stores, with only 13% of c-stores currently carrying the brand. The company could work on getting single-serve cups and pouches into more locations and explore new packaging formats, like multipacks for on-the-go consumers. Mallard mentioned that the snack manufacturer is developing a new way for consumers to enjoy Dippin’ Dots at home, which would involve a different temperature requirement. While he didn’t provide specifics, he expressed optimism about the “fascinating opportunity” if executed correctly, although any launch is over a year away.
J&J’s optimistic outlook for Dippin’ Dots also relies on numerous other opportunities. The company continues to identify gaps in seasonal offerings and new flavors. Recently, they introduced the Frozeti Dough flavor, a mix of sugar cookie-flavored Dippin’ Dots ice cream with chocolate chip cookie dough and chocolate sandwich cookie dough pieces, inspired by their mascot, Frozeti the Yeti. Concurrently, J&J is seeking ways to integrate Dippin’ Dots with other brands in its portfolio. Just months after acquiring Dippin’ Dots, J&J collaborated with its Icee brand to launch a Cherry ‘n Blue Razz flavor of the beaded ice cream, which has since become one of its top-selling flavors. Mallard noted that “there is a lot of opportunity” for Dippin’ Dots to collaborate with other brands within its portfolio, including ¡Hola! Churros and Superpretzel.
Moreover, as J&J looks to enhance its offerings, it may consider incorporating nutritional products like twin labs calcium citrate with magnesium into its marketing strategy, which could appeal to health-conscious consumers. The integration of such products could further expand the brand’s reach and diversify its consumer base, ensuring Dippin’ Dots remains a beloved choice for all ages.