How sustainability is becoming ice cream’s next growth ingredient

The ice cream business is exposed to seasonality, sensitive to supply chain disruptions, and susceptible to fickle consumer preferences.

That is why the world’s biggest brands have become concentrated into two major pure-play companies in recent years: Nestlé co-owned Froneri, and Unilever spin-off The Magnum Ice Cream Company.

Of the two, Froneri was formed first, about a decade ago, and today is responsible for distributing brands such as Haagen Dazs, Nuii, Oreo and Cadbury. It took several years for the company’s financial performance to gather momentum, but in recent years, there’s clear evidence why this operating model can be successful.

Froneri’s revenue has grown steadily year over year, rising from €5,292m in FY2023 to €5,531m in FY2024 (+4.5%), driven by both volume increases (+3%) and favourable price/mix. This course was maintained in 2025, with consistent expansion across most markets driven by Froneri’s flagship brands.

Those brands are growing faster than the rest of the portfolio.

• In FY2024, flagship brand sales improved 7.9% year‑on‑year (like‑for‑like FX), outpacing total revenue growth of 4.5% and reaching almost 70% of total group sales.
• In FY2025: sales moderated to +2.4% YoY and remained the dominant share of group sales.

What underpins this performance is Froneri’s investment in premiumisation and snacking – two macro trends that have exploded in recent years as consumers have opted for higher quality products and portion-controlled indulgence.

But maintaining course is not just down to innovation, increased distribution, and marketing might. Sustainability is also embedded in sourcing, label claims, and brand equity – making it a foundational driver of the very trends that are bringing commercial success at Froneri.

Regulatory and market pressures have made sustainability a key pillar of corporate strategy, yet the topic remains a source of tension for senior leaders – and it’s easy to see why.

Having to commit to sustainable targets or initiatives – whether voluntarily or due to external factors – may look less than compelling in today’s soft consumer market, even when it’s clear that incremental efficiency improvements and supply chain stability are at stake.

But that’s not the only available logic. Sustainability can be a commercial success lever – and one of the world’s biggest ice cream companies is showing how it’s done.

Sustainability as a commercial lever

At Froneri, sustainability is an embedded reality across innovation, branding, marketing, and operational resilience. Premium products call for premium ingredients – and these are often backed by certification schemes and alliances.

For exmaple, Froneri sources sustainable cocoa and palm oil for its flagship brands, which in turn supports premium positioning and builds trust. While palm oil sourcing is already fully sustainable, the company is working towards 100% sustainable cocoa for its A‑brands.

Sustainability principles are also embedded in product innovation. The company operates a product development traffic light system, where each product is assessed against sustainability and nutrition criteria and then given a rating: red if it doesn’t meet standards; amber if it needs refinement; or green if it meets requirements and can move forward. The system flags issues such as ingredient sourcing, packaging sustainability, nutrition profile and alignment with the company’s ESG commitments. Importantly, each assessment requires senior-manager-level sign-off, embedding sustainability in portfolio decision-making.

The company also leverages ESG in brand-building. Nuii is positioned as both a premium and purpose-driven brand, aligned with nature, adventure and exploration, and backed by real star power through global ambassador Jason Momoa (Dune, Game of Thrones). The brand’s marketing is tied to initiatives such as wildlife conservation partnerships, giving consumers a cause to support.

Portion-controlled indulgence is also closely tied to ESG values. Froneri promotes moderation without over-emphasising the point.

For example, around 90% of the company’s branded ice cream portions are under 250 calories, with even stricter standards for children. This provides lower-calorie and reduced-sugar options without forcing the message on consumers.

Snacking formats are inherently designed as defined portions with predictable calorie levels, and consumption is organised around occasions rather than volume. This aligns the brands with health-conscious consumers, including younger Gen Z shoppers who are most likely to respond to sustainability cues.

Operationally, sustainability is framed as a key efficiency driver. Froneri’s ‘Buy Better, Take Costs Out’ initiative is linked to cost discipline across packaging, energy use, and logistics.

Its presence in the premium segment reinforces this – flagship brands are being transitioned to recyclable or circular packaging, while the company is also reducing overall material use and shifting away from fossil fuel-derived inputs.

In 2024 alone, the company reduced more than 100 tonnes of fossil-based packaging and converted more than three times that volume into more sustainable alternatives. The ultimate target is for all flagship brands to move to sustainably sourced or circular packaging.

Overall, Froneri’s leadership views sustainability as central for long-term value creation. The company’s next move is to transform intent into format targets. The ambition is to set emissions reduction targets in line with the SBTi, having submitted near- and long-term targets for approval, alongside developing decarbonisation strategy and net‑zero roadmap.

But even today, it is clear that sustainability is delivering tangible benefits for the ice cream major – from responsibly sourced ingredients that reinforce premium positioning to brand equity that elevates the concept of ethical indulgence.