For U.S. Expansion, Nick’s Closes Funding, Hires Dairy Industry Vet

Swedish ice cream maker Nick’s believes that the easiest way to get consumers to make a dietary change is to require little to no sacrifice. To help implement that goal, and with an ambitious plan for 2021, the better-for-you food company announced last week the appointment of dairy industry veteran Carlos Altschul as CEO, a move that comes just weeks after the brand closed $30 million in funding.

The funding round was led by European investment group Gullspång Invest and food tech fund Capagro. DNS capital, Djursholm Investment Group, and Skandrenting AB also participated in the round, alongside new U.S. investor Khosla Ventures.

Altschul will replace Tony Davis, prior CEO of Nick’s USA, who will become Nick’s president and COO. Most recently Altschul was the CEO of Icelandic yogurt brand Siggi’s, and also has worked for yogurt category leaders Stonyfield Farms and Danone.

First launched into the Swedish market in 2016, Nick’s expanded into the U.S. in 2018. The company’s 16 flavors of ice cream are now sold in close to 4,000 U.S. retailers including Harris Teeter, Stop & Shop, Albertsons, Safeway, Big Y and Roche Brothers, as well as direct-to-consumer through subscription plans offered on the brand’s website.

The funding, Altschul said, will largely go towards the company’s further expansion in the U.S. market, as well as its entrance into Germany, with the company investing in marketing, trade spend, promotions and other means of driving trial and awareness. Although Nick’s also produces confections, sweeteners and protein bars overseas, Altschul said the near-term focus in the states will be solely on the ice cream line.

“It’s about how do we enhance our offerings and how do we continue to innovate and then support those offerings,” Altschul said of the company’s plans.

Innovation, instead, will be largely confined to meeting new dietary needs. Earlier this month the company released a vegan line of Nick’s in conjunction with food tech ingredient company Perfect Day, and though the line was direct-to-consumer to begin with, due to high demand, it will now be sold in stores as well. The company also plans to reduce net carbs for each pint, which have under 300 calories per pint, so that the entire line is keto diet compliant as well.

Nick’s aims to differentiate itself by referring to its product as “Swedish style” ice cream, it’s a term the brand coined to represent its commitment to “rigor and thoughtfulness” in its product design, CMO Eric Boisvert said. The line is low-sugar due to the use of erythritol, monk fruit, allulose and stevia, with the brand claiming it is one of the first brands to use “better tasting” Reb M. stevia. It also is low-fat thanks to the use of E.P.G., a proprietary fat made by Canadian ingredient firm Epogee that is derived from the rapeseed plant. Nick’s has the exclusive rights to the ingredient in ice cream, Boisvert said, which can cut 92% of calories from fat for each unit of fat replaced.

Though some may argue keto or low-fat ice cream are chasing a fad, citing the rise and fall of Halo Top in popularity and sales, Boisvert pointed to Nick’s 70% repeat purchase rate as proof that the brand has sticking power. Success will come, Altschul contents, because unlike other “diet” ice creams, Nick’s requires no compromise to switch to from a higher fat and sugar option.

“I’m now a big believer in delivering what the consumer wants without asking them to retrain their palate or change their behavior. That’s the way to make a bigger impact,” Altschul said. “We want you to love Nicks the first time you put the first spoonful in your mouth”