INNOVATIONS UNDERWAY IN CHILE'S ICE CREAM INDUSTRY

(February 3, 2007) As thermometers climb to 30° C (86° F), ice cream consumption throughout the Chile is at its peak – yet the leading companies of the ice cream industry are already seeking to increase traditionally low winter sales.

Ice cream is associated with hot summer days, and sales reflect the seasonal nature of the cold creamy desert: “Sales between September and March represent about 70% of our total annual sales”, says Paolo Cittadini, head of marketing for Savory, one of Chile’s chief ice cream producers. 40% of these sales are made in the summer months of December, January and February.
The two leaders of the Chilean ice cream industry - Savory, by Nestle, and Brestler, by Unilever - are aiming to increase stagnant winter sales. Marketing strategies in both companies greatly target children – Brestler’s current campaign, “Princesses, Dreams and Strawberries”, features classic Disney princesses, and the “Princess” ice cream bars come with free stickers and temporary tattoos.
Another popular marketing technique concentrates on flavor variety and originality: “Consumers aren’t just looking for a basic ice cream anymore,” says Sergio Olavarrieta, professor of marketing at the University of Chile, “They want a dessert that comes with toppings, fruit, and chocolate”. According to Olavarrieta, this competition has led to the wide variety of ice cream available in Chile: “The two main companies are constantly fighting against each other with promotions and new products, so it’s the consumer who reaps the benefits,” he says. (ST November 5, 2006)
Per capita, Chile is the number-one consumer of ice cream in Latin America and number ten in the world, according to the Chilean government’s Consumer Review (Sernac). On average, Chileans consume six liters of ice cream per person each year, and families spend almost USD$16 per month on frozen treats. (ST November 5, 2006)
As Savory and Nestle battle to increase winter sales, Chileans will see an even broader variety of flavors, greater promotions, and increased marketing campaigns in the coming months.