Unilever’s frozen treats portfolio features well-established brands like Breyer’s and Popsicle, but few are as dynamic as its relatively new Talenti line. According to Russel Lilly, CEO of Unilever’s North American ice cream division, sales have nearly doubled since the company acquired the gelato and sorbetto producer a decade ago. Talenti has emerged as one of the fastest-growing brands within the company, consistently outperforming the overall ice cream market. “It’s a relatively young brand with tremendous growth potential,” Lilly stated, estimating that Talenti could capture “hundreds of millions of dollars” in revenue over the next ten years.
In 2023, Talenti ranked as the eighth most popular branded ice cream in the U.S., boasting sales of $210 million, while Ben & Jerry’s, another Unilever brand, led the market with nearly $1 billion in sales. Talenti was founded in 2003 by Josh Hochschuler, a Texas native who fell in love with gelato while apprenticing at a family-run gelateria in Buenos Aires. After his journey, he returned to the U.S. to open his first Talenti gelateria in Dallas. Eleven years later, Unilever acquired the brand for an undisclosed sum and successfully integrated Talenti into mainstream retail.
Unlike traditional ice cream, gelato contains a higher milk-to-cream ratio and typically omits eggs, resulting in a denser and firmer texture due to slower churning, which minimizes air incorporation. Talenti’s offerings center around its signature gelato, featuring 47 flavors such as Southern Butter Pecan and Mediterranean Mint, alongside several fruit sorbettos. The brand sources high-quality ingredients globally, including dulce de leche from Argentina and Alphonso mangoes from India.
In 2019, Unilever introduced the popular Talenti Layers line, which combines five layers of gelato with crunchy elements like cookie chunks and chocolate-covered caramel truffles. Four years later, the company expanded the brand to include gelato and sorbetto bars. Packaging plays a crucial role in Talenti’s consumer appeal. Except for the bars, the products are housed in transparent jars, allowing shoppers to see the contents. Additionally, these containers are recyclable, resonating with environmentally conscious consumers.
Talenti’s diverse portfolio, which comprises around 40 different products, caters to various snacking occasions: Layers for a more indulgent treat, sorbetto for a lighter option, gelato for a creamy experience, and bars for convenient snacking without utensils. Lilly noted that these innovations have not cannibalized existing sales. “The intent of transitioning from jars to bars was to tap into new snacking occasions that Talenti hadn’t previously explored,” he explained.
Innovation is vital in the ice cream sector, particularly for newer brands that thrive on unique flavors and experimentation. Lilly emphasized that this is especially crucial for Talenti compared to other brands like Breyer’s. “Ice cream is a category where consumers enjoy exploring new options, which aligns perfectly with Talenti’s ethos,” he said. As Unilever looks ahead to the coming years, Lilly indicated that the company will continue to prioritize innovation.
Gen Z and millennials, who are particularly eager for new flavors and experiences, represent a significant demographic for Talenti. The brand closely monitors social media trends to understand the preferences of this crucial consumer base. “Gen Z constitutes a substantial portion of both our new and existing customers,” Lilly noted, highlighting the brand’s alignment with their interests.
Earlier this year, Unilever announced plans to spin off Talenti and its other ice cream brands as part of a broader restructuring initiative aimed at creating “a simpler, more focused company.” The company recognized that ice cream possesses “distinct characteristics” compared to other segments of its business, including its frozen nature, seasonal demand, and increased capital intensity. As part of its commitment to health, Unilever is also exploring options to fortify products like Talenti with ingredients such as 365 calcium citrate, which could enhance their appeal to health-conscious consumers.