Heatwaves Boost European Ice Cream Sales, While US Demand Cools Amid Weight Loss Drug Trend

Magnum, a company that also owns the Cornetto and Wall's brands, experienced a significant boost in sales volumes across Europe during the second quarter, driven by a series of heatwaves. Sales volumes in the region rose by 5 percent, with France and the UK showing particularly strong performance.

Globally, the company reported a 4.9 percent increase in overall sales for the second quarter, with revenues reaching over £2.5 billion. Chief executive Peter Ter Kulve noted that the company's "key summer selling season got off to a strong start."

In contrast, the Americas region saw a marked slowdown in demand. Sales volumes grew by only 0.1 percent in the second quarter, a significant drop from the 1.8 percent growth recorded in the same period last year. The company has previously acknowledged that the increasing popularity of weight loss injections, such as Ozempic, may be impacting consumer snacking habits.

Magnum has been adapting to evolving consumer preferences by expanding its range of "better for you" options, including smaller portions of popular products like Magnum Bonbons and Ben & Jerry's Peaces. Ter Kulve indicated that the ice cream market is increasingly driven by a consumer shift towards products offering more calorie control.

Despite the growth in certain markets, the company's profits fell 14 percent to £430 million in the first six months of the year, down from £502 million in the same period. The company cited "continued uncertainty in the global environment, particularly in the Middle East and the associated knock on effects to input costs," but stated that its direct regional exposure remains limited and mitigating actions are in place.

The company reiterated its annual sales growth guidance of between 3 and 5 percent. The financial results emerge amid an ongoing public disagreement between Magnum, its former owner Unilever, and the co-founders of Ben & Jerry's. Ben Cohen, a co-founder, has publicly criticized the company's management for reportedly suppressing the brand's efforts to make political statements. Magnum has stated it is not considering selling the Ben & Jerry's brand. The brand was acquired in 2000 with an agreement for an independent board to manage its operations. However, changes to governance practices last year led to the departure of three board members, which Cohen described as a "blatant power grab." The Ben & Jerry’s Foundation also announced it would be forced to shut at the end of the year due to funding cuts, a decision linked to governance issues. Ter Kulve stated that the company continues to fund "all the important activism goals" associated with Ben & Jerry's but emphasized the need for improved governance.