Dive Brief:
- The Magnum Ice Cream Company, owner of Ben & Jerry’s, has partnered with beaded ice cream maker Mini Melts to sell their products at transit hubs and entertainment venues. This new partnership will see Mini Melts operating Magnum-branded vending machines nationwide, offering a curated selection of products including Mini Melts, Ben & Jerry’s pints, and Good Humor novelty bars.
- This agreement, set to launch this summer, aims to bring Mini Melts to new locations and advance Magnum’s out-of-home growth strategy by targeting consumers in high-traffic areas such as entertainment destinations, transit hubs, and retail sites.
Dive Insight:
Magnum, which spun out from parent company Unilever last December, is competing with Dippin’ Dots to capture consumers at malls, sports arenas, and other destinations where indulgence is common.
Mini Melts, originally a U.K. competitor to Dippin’ Dots, has gained popularity in the U.S. by focusing on convenience stores, zoos, aquariums, and entertainment venues like Dave and Buster’s.
The partnership with Magnum will leverage Mini Melts’ expertise in frozen vending infrastructure and help them expand their reach. Mini Melts currently operates around 35,000 locations nationwide.
“This partnership is a significant step in expanding Magnum Ice Cream’s reach beyond traditional retail,” said Bryce Carroll, Magnum’s senior commercial development manager. “Mini Melts provides us with the scale and footprint to introduce our brands in everyday moments and create new consumption opportunities nationwide.”
Despite a focus on health and wellness, consumers still indulge in treats like ice cream, especially when enjoying experiences like movies or visits to entertainment venues.
Magnum aims to capitalize on this trend by reaching more consumers outside of grocery stores. The company reported 4.5% organic sales growth in the first quarter, with strong demand for ice cream in the U.S.
Peter ter Kulve, Magnum’s CEO, mentioned in an earnings call that the company’s innovation is shifting towards different occasions and formats.
New Ben & Jerry’s ice cream bars were well received, showcasing the brand’s focus on innovation for on-the-go consumption.