New Delhi | Dairy Industry News
In a significant move for India’s frozen dessert and ice cream market, Kwality Wall’s has announced that its entire product portfolio, including popular brands such as Magnum, Cornetto, and Kwality Wall’s, will gradually transition to being fully milk-based ice creams.
The announcement was made by Peter ter Kulve, Global CEO of the Magnum Ice Cream Company, following the separation of the ice cream business from Unilever.
According to reports, nearly half of the company’s portfolio will shift to dairy-based formulations this year, with the remaining products transitioning by next year.
Why the Change?
For many years, a large portion of Kwality Wall’s products sold in India were classified as frozen desserts rather than ice cream. Under Indian food regulations, ice cream must derive its fat primarily from milk, whereas frozen desserts can use vegetable fats such as palm oil.
As a result, several products marketed under the Kwality Wall’s umbrella were manufactured using vegetable fats, which helped keep costs lower but often led consumers to perceive them as less premium than traditional dairy ice creams.
“We are not a frozen dessert company anywhere in the world; we are an ice cream company,” said Peter ter Kulve, emphasizing the company’s commitment to dairy-based products.
Expected Benefits for Consumers
The company believes Indian consumers increasingly prefer milk-based products due to perceptions of:
- Better taste and creaminess
- Higher nutritional value
- Premium quality
- Authentic dairy ingredients
Interestingly, despite the shift to milk-based formulations, Kwality Wall’s is also planning to reduce prices by up to 30% in selected categories, aiming to improve affordability and increase market penetration.
More Indian Flavours Coming
As part of its localization strategy, the company plans to introduce and expand traditional Indian flavours such as:
- Kulfi
- Kesar Bhog
- Other regionally inspired dairy desserts
This move reflects the growing demand for products that combine international brands with local taste preferences.
Major Growth Plans for India
India currently contributes around US$200 million in business for the company, but management expects the country to become one of its largest growth markets globally.
To support this ambition, the company plans significant investments in:
- Manufacturing capacity
- Cold-chain infrastructure
- Retail freezer cabinets
- Distribution networks
Ter Kulve highlighted the importance of expanding infrastructure, noting that supplying the entire country from a single facility in Nashik is not sustainable for long-term growth.
Read More: Arla Foods and DMK Secure Regulatory Approval for Landmark Dairy Merger
What This Means for the Dairy Industry
The decision is particularly significant for India’s dairy sector because a complete shift from vegetable-fat frozen desserts to milk-based ice creams could:
- Increase demand for milk fat and cream
- Create additional opportunities for dairy farmers
- Strengthen the organized dairy value chain
- Boost value-added dairy product consumption
For dairy professionals and students preparing for DFO, Dairy Supervisor, Amul, Mother Dairy, or cooperative-sector examinations, this development is a notable example of how consumer preferences are increasingly driving companies toward authentic dairy-based products rather than vegetable-fat alternatives.
Key Takeaway: Kwality Wall’s is moving away from frozen desserts made with vegetable fats and transitioning to genuine milk-based ice creams, while simultaneously lowering prices and expanding its range of Indian flavours to capture a larger share of the rapidly growing Indian ice cream market.
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