The growing demand for artisanal gelato has pushed one of New Zealand's most prominent manufacturers into expansion.
Interest in artisanal gelato saw considerable domestic growth, influencing Island Gelato Co. to launch a wholesale supply arm, which is now available in selected supermarkets.
The entry of Island Gelato Co. into the FMCG channel will pave the way for increased production of upcycled gelato made from perishable produce diverted from landfills.
These upcycled gelatos are then sold to supermarkets and other channels as a new product, reducing food waste and expanding production volumes of upcycled foods.
Beginning as a single Waiheke Island kiosk a decade ago, Island Gelato Co. has expanded to five retail stores and now stocks six of its flavours in all Farro supermarkets.
Ana Schwarz, the co-founder of Island Gelato Co., stated that the strategic move into premium supermarkets and hospitality channels is the first stage in the company's five-year expansion programme, designed to see its high-value range exported into vital offshore markets.
"This stage of our multi-channel expansion will see us expand further into premium supermarkets and retailers and upmarket hospitality - including catering suppliers and restaurants," said Schwarz.
"From there, we would look to grow the number of supermarket doors we are in, strategically selecting stores that have a similar target market to our own and then progressively move into premium niche export markets where we can maximise our revenue per kilogram, over the next three to five years."
Over the past summer, the latest sales peaked at 13 percent, with an expected growth of 15 percent following the new deal with Farro.
While ice cream still dominates New Zealand supermarket freezers, the interest in gelato is rapidly growing. Island Gelato Co's takeaway containers and special occasion gelato cake formats have grown 147 percent in the last 12 months.
"While perishable fresh produce reaches a point where it is not suitable for sale on supermarket shelves, the softer texture of more ripe fruit and vegetables is ideal as an ingredient in gelato," said Schwarz.
"One of the key benefits of this model, from a sustainability perspective, is that not only are we rescuing food from the landfill, but we're also extending the shelf life of highly perishable fresh produce from a few days to six months when stored in the freezer as a component of gelato."
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