Magnum Ditches Veggie Fat for Dairy Ice Cream in India

Magnum Ice Cream is executing a significant strategic transformation for its Kwality Wall's business in India. The company is moving away from frozen desserts made with vegetable fats, such as palm oil, towards dairy ice cream. This shift is driven by the belief that Indian consumers increasingly value milk-based products for their perceived quality and nutritional benefits.

This transition is part of a comprehensive overhaul for the Netherlands-headquartered firm. Magnum is accelerating capital deployment in India, addressing years of underinvestment. The company is also reducing prices by up to 30% in certain categories, introducing local flavors like kulfi and kesar bhog, and plans to deploy a million cold cabinets across the country.

India, currently a roughly $200 million business for Magnum, has the potential to become its largest market. The global CEO, Peter ter Kulve, stated that by next year, most of the portfolio transition to dairy will be complete. He emphasized that Magnum is an ice cream company, not a frozen dessert company, and that India represents a critical strategic reset.

This initiative follows Unilever's spin-off of its global ice-cream operations, granting Magnum greater autonomy. The company recently acquired a 61.9% stake in Kwality Wall's, listed in India. To support nationwide distribution and ensure better cost, quality, and service, Magnum is also planning to build more factories, moving beyond its existing facility in Nashik.