Kwality Wall's Embraces Dairy, Lowers Prices
Kwality Wall's ice creams, including popular brands like Magnum and Cornetto, are set to undergo a significant transformation. The company, part of Unilever's recently spun-off global ice cream operations, will transition its entire product line to milk-based formulations, moving away from vegetable fats like palm oil.
This strategic shift will also see price reductions of up to 30% in certain categories, alongside the introduction of new local flavors such as kulfi and kesar bhog, according to a report in The Economic Times.
A Global Strategy with India at the Core
Peter ter Kulve, Global CEO of Magnum Ice Cream Company, stated that the Netherlands-headquartered company is committed to being a dairy-based ice cream producer worldwide. He confirmed that half of the portfolio will transition this year, with the remainder following next year. "We are not a frozen dessert company anywhere in the world; we are an ice cream company. In India, we changed everything, everything," ter Kulve told The Economic Times.
The move is driven by a belief that Indian consumers increasingly prefer milk-based products, perceiving them as higher quality and more nutritious. This decision is not exclusive to India but is part of a broader global overhaul by the company.
Eyeing India as a Major Growth Market
India is a crucial market for Kwality Wall's, currently representing a $200 million business that the company expects to become its largest globally. To support this ambitious growth, the company plans to accelerate capital deployment within the country.
Ter Kulve also highlighted the logistical challenges and opportunities in India's vast market. He noted the difficulty of ensuring consistent cost, quality, and service when ice cream for the entire country originates from a single location like Nashik. "In Turkey we have one cabinet for every 350 people. Ultimately I will need a million cabinets in India," he added, underscoring the immense potential for expansion and localized production.