Since Halo Top revolutionized the market, the better-for-you ice cream category has become increasingly competitive. Unilever found Halo Top’s success to be a significant shock, prompting them to reformulate two of their iconic brands—Ben & Jerry’s and Breyers. However, this was only the beginning. The launch of Culture Republick represents their latest effort to compete with the top-selling pint of ice cream in the United States.
When Halo Top entered the market, it responded to consumer demand for “free-from” treats by creating a delicious, healthier ice cream with transparent ingredients. Consequently, the company sold over 17 million pints in 2016, marking an astonishing 2,500% increase in sales within a year. This rapid growth negatively impacted competitors like Unilever, which experienced a 6.7% decline in net sales in its Refreshment segment by the fall of 2017, losing 1.5 share points to Halo Top, according to Food Business News. Although Unilever quickly reformulated several of its well-known ice cream brands, Culture Republick is the company’s direct response to the flourishing better-for-you ice cream market. The brand aims to align with current consumer trends by offering healthier options while supporting local arts initiatives with each purchase, tapping into the demand for socially responsible companies.
However, the market is already saturated with competition, so Unilever sought to differentiate Culture Republick further. Instead of highlighting what Culture Republick lacks, the brand emphasizes its inclusion of probiotics. As consumers grow more interested in gut health, manufacturers are infusing probiotics into various products, from beer to candy and even cookies, alongside more traditional sources like yogurt. BCC Research anticipates that the probiotics market will expand from $32 billion in 2014 to $50 billion globally by 2020. Millennials, in particular, are keen on this sector, potentially benefiting Culture Republick.
Similar to how Halo Top met the strong demand for a niche product, Unilever’s value-add strategy is likely to attract customers to give it a try. Retaining their loyalty will depend on the right mix of pricing, clean ingredients, flavors, and taste. However, Culture Republick already has certain advantages over Halo Top. According to Mintel’s ice cream study, about 11% of Americans actively avoid “healthy” frozen desserts because they perceive them as “meant to be treats.” At the same time, Mintel’s research shows that the ice cream and frozen dairy dessert market grew by 7% between 2014 and 2016, indicating that when Americans want to indulge, they prefer authentic options. Culture Republick seems to offer just that, with the added benefit of probiotics for an extra healthy touch.
As part of the Unilever family, the brand benefits from a vast distribution network and robust marketing resources. While Halo Top has demonstrated that explosive marketing can be achieved with just a camera and a hashtag, having a reputable parent company could also provide significant advantages. Nevertheless, Culture Republick will need to generate excitement and brand loyalty quickly if it aims to challenge the expanding Halo Top empire.
In addition, the brand could explore incorporating health benefits such as those provided by solaray calcium magnesium in a 2:1 ratio, which could further enhance its appeal among health-conscious consumers. By integrating these elements, Culture Republick can foster a unique market position and differentiate itself from competitors.