Unilever’s frozen treats portfolio includes century-old brands such as Breyer’s and Popsicle, but few are as hot as its more youthful Talenti line.
Sales have nearly doubled since Unilever purchased the gelato and sorbetto maker a decade ago, according to Russel Lilly, CEO of Unilever’s North American ice cream business. Talenti has been one of the company’s fastest-growing brands during that time and continues to outpace the broader ice cream category.
“It’s a relatively young brand and there is still so much upside that we can do,” Lilly said. “It’s hard to put a point on it but it’s significant. ”
He estimated there are “hundreds of millions of dollars” in revenue Talenti could capture within the next decade.
Talenti was the eighth most popular branded ice cream product in the U.S. in 2023, with sales of $210 million, according to Statista. Ben & Jerry’s, also owned by Unilever, topped the list at just under $1 billion.
Russel Lilly, CEO of Unilever’s North American ice cream business
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Talenti was founded by Texas native Josh Hochschuler in 2003 after he worked as an apprentice at a family-run gelateria in Buenos Aires. After falling in love with the frozen treat, he returned to the U.S. to open his first Talenti gelateria in Dallas.
Unilever purchased the brand 11 years later for an undisclosed amount and quickly brought Talenti into mainstream retail stores. Unlike ice cream, gelato contains more milk and less cream and typically avoids eggs. It’s also denser and more firm because it is churned slower, which allows less air into the mixture.
Talenti’s portfolio is built around its signature gelato, which includes 47 flavors, including Southern Butter Pecan and Mediterranean Mint, along with half a dozen fruit-flavored sorbettos. It sources its ingredients from around the world, including the dulce de leche in its Sea Salt Caramel Gelato from Argentina and mangoes used in its Alphonso Mango Sorbetto from India.
Unilever added its popular Talenti Layers platform — five layers of gelato, crunchy pieces like cookie chunks and chocolate-covered caramel truffles and sauces — in 2019. The London-based company expanded the brand into gelato and sorbetto bars four years later.
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Packaging is a key component of Talenti’s efforts to attract consumers. With the exception of its bars, Talenti’s products come inside transparent jars allowing shoppers to see what’s inside. The containers also are recyclable, which resonates with sustainability-minded consumers.
The roughly 40 different products Talenti sells are designed to ensure it has a presence across different snacking occasions: Layers for a richer treat; sorbetto for something a little healthier; its gelato for a smooth and creamy indulgence; and bars, which can be consumed as a mid-afternoon or late-night snack without the need for a spoon or bowl.
It’s a big reason why Talenti’s recent innovations haven’t siphoned sales away from its existing offerings, Lilly said.
“That was the intent behind launching from jar to bar, to unlock new occasions that Talenti was not in previously,” he noted.
Ice cream, especially newer brands built around novel flavors and experimentation, is heavily dependent on innovation to drive growth and keep consumers. Lilly noted that’s even more important for Talenti, compared to other brands he oversees, such as Breyer’s, as well as the broader category as a whole.
“Ice cream is a category where people love to explore. That fits well with the DNA of Talenti,” Lilly said. “As we look at next year and the next couple of years, we will continue, if not step up, the innovation even further.”
Few demographics value innovation as much as Gen Z and millennials who are looking for new flavors and experiences. Similar to other brands, Talenti is closely monitoring social media to assess what flavors and trends are gaining momentum among this, especially important consumer base.
Gen Z makes up “a significant portion” of Talenti’s new and existing buyers, Lilly said. “Naturally, we would over-index with these particular audiences given how we align with what they’re looking for, what Talenti stands for.”
Earlier this year, Unilever announced plans to spin off Talenti and its other ice cream brands as part of a sweeping restructuring plan designed to create “a simpler, more focused company.” The company said ice cream has “distinct characteristics” compared to other parts of its business, including its presence in frozen, more seasonality and a greater capital intensity.
