Protein or pickled garlic? What's new in ice cream

An important development from the financial markets: Protein or pickled garlic? What's new in ice creamImage caption, Magnum's R&D centre improves existing recipes and works on new onesByElizabeth HotsonBusiness ReporterPublished2 hours agoI'm at the research and development centre of the world's biggest publicly listed ice-cream maker, Magnum. Near Bedford in the UK, it's where the company's researchers dream up new recipes and develop their production processes.

What really catches my eye is a pale yellow glow in the corner of the room. The light emanates from a glow-in-the-dark ice lolly. Launched in the clubbing capital of Ibiza, it's targeted toward clubbers and festival-goers, and one of its ingredients, vitamin B2, is naturally luminescent and glows under UV club lights.

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While a luminescent product may seem a bit of a gimmick, ice cream is a serious business and innovation is crucial to staying ahead of the game. There's tough competition from other giants including Häagen-Dazs owner, Froneri, and Baskin-Robbins, the world's largest chain of ice cream specialty shops, not to mention smaller artisan ice cream makers that are popping up all the time. They're all dealing with a notoriously unpredictable market and with fluctuating commodity and energy prices.

No one can afford to stand still. "We've had five years of price volatility impacted by war in Ukraine, Covid, the cost of living crisis. We've now got the Strait of Hormuz.

We've just been in this constant state of instability when it comes to pricing," says Georgia Rose, principal analyst at global market research company, Kantar Retail IQ. And those price fluctuations affect multiple areas of the ice-cream making process. "Manufacturers have been hit by higher prices for dairy, cream, eggs; the ingredients that make ice-cream bases.

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And then you've got the flavours; vanilla, chocolate, sugar, fruit. And something that often gets forgotten is the cold-chain energy costs and storage," she says. Image caption, Lowering refrigeration costs is a priority for MagnumRising costs are something The Magnum Ice Cream Company is battling with.

It was spun off from parent firm Unilever last year and owns brands including Cornetto, Twister, Solero and of course, Magnum. As the largest stock market-listed ice cream company in the world, with a market capitalisation of around £8bn, it has the funds to innovate. One area under constant development is refrigeration - globally Magnum owns three million fridges, (designed and built by a third party), and some are fitted with cameras taking images to be uploaded to data centres.

From the pictures, AI identifies each product and it's also trained in depth-recognition, which means it can estimate how many units of a particular ice cream have been sold and when a fridge needs to be restocked. This equates to less empty space and more targeted supplies. Meanwhile, the fridges themselves have been made more energy efficient.

Financial markets are tracking the development closely as investors assess the likely impact.