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Magnum pins growth on Chinese cravings for sweet indulgence

By Wang Zhuoqiong | CHINA DAILY | Updated: 2026-05-22 10:01
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A boy enjoys ice cream at a Magnum pop-up store on Hubin commercial street in Hangzhou, Zhejiang province, on May 4. CHINA DAILY

At a sprawling factory in Taicang, Jiangsu province, Peter ter Kulve, CEO of The Magnum Ice Cream Company, watched as a robot dog patrolled the factory complex. Nicknamed Ne Zha, the robot conducts 24/7 safety inspections — monitoring temperatures, checking compressor systems and feeding real-time data to the team.

"I want that dog everywhere," he joked.

This mix of cutting-edge automation reflects TMICC's broader strategy. "We have created a business that is very much China for China. But when it comes to technology and innovation, we now take a lot of innovations from here to the rest of the world," ter Kulve said.

While products are tailored to Chinese tastes, the technological advances — like artificial intelligence-driven production — are shared with TMICC operations worldwide.

For ter Kulve — who first arrived in China in 1982 and later led Wall's China from 1999 — the encounter with Ne Zha symbolized the dramatic transformation sweeping the country's supply chains. On a recent two-week trip, he observed firsthand how AI, robotics and automation are reshaping production, logistics and retail operations.

Leveraging technology and innovation is key to balancing high quality with affordability, particularly for a leading ice cream company like TMICC, he said. Precision manufacturing has also helped narrow the price gap with local competitors by minimizing waste and optimizing ingredient usage. For example, innovative products such as the Cornetto seven-layer ice cream stick now retail for just six yuan ($0.88).

Yet, the transformation isn't just technological. Chinese consumers themselves have evolved. "People used to want something cheap and large or foreign," he recalled of 25 years ago. "Now, they are sophisticated, discerning and exposed to the best from around the world. Yet, they also want the best to be Chinese."

TMICC has embraced this shift. China remains a strategic market for the company. Since being demerged from Unilever in 2025 and its subsequent global listing, TMICC has operated as a standalone company, positioning China as a key hub. Earlier this year, its Asia headquarters officially opened in Shanghai, signaling a deepened commitment to the market.

The company's numbers back up this strategy. TMICC holds a 21 percent share of the global retail ice cream market and manages four of the five largest global ice cream brands, including Wall's, Magnum, Cornetto and Ben & Jerry's. In China alone, nearly 30 new products have been launched this year, driving high-single-digit growth in the first quarter of 2026.

Ter Kulve attributes the company's success in China to a mix of high-quality production, strong local management, premium branding and relentless innovation — a formula that ensures sustainable growth.

Despite per capita consumption of ice cream being lower than the global average, competition in China remains fierce. Euromonitor reports that in 2025, Yili led the market, TMICC was among the top five players along with Mengniu, General Mills and Deshi China. Meanwhile, snack and beverage companies are entering the ice cream category, adding pressure with offerings ranging from high-end to budget-friendly products.

To stay ahead, TMICC's China unit has announced plans for this year, including expanding freezer deployment, accelerating local innovation through the China research and development center, investing in digital marketing and advancing supply chain digitization.

Globally, the ice cream market grows 3-4 percent annually, one of the fastest-growing consumer categories. The trend, however, is shifting: consumers are increasingly favoring smaller, premium products with superior ingredients, flavors and health benefits. Magnum aims to lead this transformation, using China as both a testing ground and a launchpad for global innovation.

The CEO highlighted the entertainment side of the ice cream business over mere convenience. "Online offers convenience, but it can't replicate the joy of experiencing ice cream in person," he said. Pop-up stores, influencer events and sampling campaigns are becoming integral to the ice cream shopping experience.

For example, from April 30 to May 10, the company launched the Magnum pleasure store pop-up in Hangzhou's iconic West Lake, attracting large crowds and becoming one of the city's standout summer lifestyle destinations. Visitors could co-craft their own limited-edition Magnum ice creams and beverages.

For ter Kulve, ice cream is more than a product — it's a cultural statement. "Ice cream is fashion — it's the 'lipstick' of the food world. Everyone can afford a little happiness," he said. "Our job is to make life taste better with ice cream — making these brands exciting through joy, entertainment and a touch of luxury."

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