Early Arrival of 'Jjimttong Heat'... Ice Cream Sales Soar

Strong Performance Expected for Ice Cream Companies Amid Summer Heat
Top 4 Convenience Store Chains See Ice Cream Sales Increase by Over 20%

As the intense heat begins in earnest, the convenience store industry is experiencing a surge in demand. Ice cream and ice products are selling rapidly at convenience stores, raising expectations for strong performance from domestic frozen dessert companies.

On the 12th, Asia Economy examined the sales trends of ice cream and ice cup product categories from the four major domestic convenience stores during the first ten days of this month (1st?10th). The results showed that all four stores recorded sales increases of over 20% compared to the previous ten days (May 22nd?31st).

The growth rates in ice cream sales by company were ▲CU (27%) ▲GS25 (20.9%) ▲7-Eleven (20%) ▲Emart24 (21%). During the same period, the sales growth rates for ice cups were similarly ▲CU (21.8%) ▲GS25 (24.1%) ▲7-Eleven (20%) ▲Emart24 (21%).

On the 10th, as the daytime temperature in Seoul exceeded 30 degrees Celsius, summer heat continued, and heat haze was rising on Yeouidaero in Seoul. Photo by Jin-Hyung Kang aymsdream@

Among the top-selling ice cream products at convenience stores were steady sellers such as World Cone (Lotte Wellfood), Bravo Cone (Haitai Ice), and Melona (Binggrae). However, there were some detailed differences by company. At CU, operated by BGF Retail, the 'Lala Sweet Matcha Choco Bar' ranked first in sales. Lala Sweet is an ice cream brand emphasizing low sugar and low calories, sold exclusively at CU among domestic convenience stores. This month, sales of Lala Sweet ice cream have increased by 39.8%. Similarly, 7-Eleven’s private brand (PB) product 'Seven Select Milk Choco Cone' ranked fourth in sales.

According to the Korea Meteorological Administration, daytime temperatures exceeded 30°C in most regions nationwide the previous day, with Daegu reaching a high of 34°C, continuing the early heat wave. On the night of the 10th, Gangneung in Gangwon Province recorded the first tropical night of the year. A tropical night is defined as when the minimum temperature remains above 25°C from 6 p.m. the previous day to 9 a.m. the next day, occurring six days earlier than last year’s first tropical night.

The convenience store industry expects demand for frozen desserts to continue and has launched large-scale discount events. CU has been running a two-plus-one (2+1) promotion on all Lala Sweet products (excluding pints) since early this month, with pint products discounted by 2,000 won to 6,900 won. About 40 types of ice cream bars, tube products, and zero series are offered at 50% off when purchasing five or more. Over 150 products, including cone ice creams like World Cone, Bravo, and Pangpare, as well as cup ice creams such as red bean shaved ice, are available under one-plus-one (1+1) or 2+1 promotions.

GS Retail, which operates GS25, is also offering benefits such as 1+1, 2+1, and 50% discounts on purchases of five or more for about 200 products this month. 7-Eleven is providing a 20% discount on two PB ice cream products, 'Seven Select Milk Vanilla Cone' and 'Seven Select Milk Choco Cone,' when paid with BC Card or Naver Pay points/money until the 30th. Additionally, it is running promotions on about 180 products until July. Emart24 is conducting a 50% payback event for customers who purchase general ice cream (excluding H?agen-Dazs and Natuur) worth 5,000 won or more. Furthermore, customers who buy all vitamin drinks with event cards (BC, Shinhan) can purchase ice cups for 100 won. This promotion reflects the trend of mixing ice with energy drinks and vitamin beverages.

"Welcome Heat Wave"... Rising Expectations for Frozen Dessert Industry Performance

With this year’s record-breaking heat wave forecasted, expectations for strong performance are growing, especially among frozen dessert companies. The securities industry predicts that Lotte Wellfood, which dominates the domestic frozen dessert market, will record an operating profit of 64.1 billion won in Q2, a 31.89% increase compared to the same period last year. Sales are expected to rise 3.51% to 1.0771 trillion won. The increase in frozen dessert sales during the summer peak season is seen as a key contributor to improved performance.

Strategies to expand product lines with new types of products have also been effective. In April, Lotte Wellfood became the first in the domestic frozen dessert industry to launch 'zero-calorie' ice creams, 'Screw Bar 0 kcal' and 'Jaws Bar 0 kcal,' which sold about 7.2 million units within one month of release. These products feature natural sweetener allulose instead of sugar, offering a sweet and refreshing fruit flavor comparable to existing products but with zero calories, allowing consumers to enjoy them without calorie concerns. The initial production volume planned by the company was about 3.2 million units, but sales doubled expectations and orders surged, leading to increased production.

'0 Calorie' Screw Bar, Jaws Bar Package.
[Photo by Lotte Wellfood]

Under the vision of providing healthy yet enjoyable flavors, Lotte Wellfood also introduced four types of sugar-free frozen desserts under the 'ZERO' dessert brand in April (Zero Triple Chocolate Bar, Zero Cookies & Cream Bar, Zero Deep Chocolate Pint, Zero Cookies & Cream Pint). Along with existing products such as 'Zero Milk Soft Cone,' 'Zero Milk Monaka,' and 'Zero Mini Bite,' the brand’s product lineup has grown to seven. Additionally, through the protein-specialized brand Easy Protein, they launched two high-protein ice cream bars (Banana Crunch and Coffee Crunch) that reduce sugar and calories while increasing protein content.

The consensus for Binggrae, another major player in the frozen dessert industry, is also positive for Q2. Operating profit is expected to rise 10.80% year-on-year to 51.3 billion won, and sales are forecasted to increase 6.15% to 412.6 billion won. This reflects increased sales of key frozen dessert products both domestically and overseas. For example, Melona, launched in 1992, sells over 18 million units annually in the U.S. and accounts for 70% of Korea’s ice cream export value to that market, demonstrating its strong popularity.

Meanwhile, reflecting these results and expectations for the peak season, Binggrae’s stock price on the Korea Exchange rose to 115,500 won intraday on the 10th, reaching its highest level in about 11 years since June 2013. Lotte Wellfood’s stock price also hit a five-year high, reaching 185,500 won intraday on the same day, the highest since May 2019.

This content was produced with the assistance of AI translation services.