Protein Ice Cream Brands Scoop Up Cash

The latest FMI and Nielsen IQ report predicts online grocery sales will reach $452 billion by 2028, pushing e‑commerce’s CAGR to 11.5% while traditional store sales barely move. With more than 94% of shoppers using both channels, retailers are racing to improve digital taxonomy, filter options and checkout suggestions to turn small “spearfishing” baskets into larger, higher‑value orders. This hybrid landscape forces CPG brands to rethink SKU rationalization and omnichannel merchandising to stay visible across both physical and digital shelves.

High‑protein frozen desserts are heating up as a fast‑growing niche. Austin‑based Frozen One just closed a $2 million seed round, touting 40 grams of protein, 8 grams of fiber and 390 calories per pint across three flavors. Meanwhile, New York’s Smearcase secured its first institutional investment to expand its cottage‑cheese‑based “Froko” into Midwest and Whole Foods locations. The influx of capital signals confidence that consumers view protein ice cream not just as a novelty but as a functional indulgence, echoing Halo Top’s earlier success in normalizing healthier ice‑cream options.

Beyond frozen treats, the CPG landscape is reshaping through strategic divestitures and new functional beverages. Nestlé has off‑loaded its Blue Bottle coffee brand—originally bought for up to $425 million—while Popwater, an electrolyte‑infused sparkling water from Lemon Perfect’s founder, is raising $9.5 million to challenge the modern soda category. Simultaneously, protein‑enhanced sodas like Koya’s Protein Pop and Proda’s orange‑flavored option illustrate brands’ push to blend taste with performance. Together, these moves underscore a broader shift toward health‑forward, convenience‑driven products across both online and brick‑and‑mortar channels.