Cost-Benefit Analysis

Vanilla Ice Cream – What’s Really Inside?

Figure 1: Photograph of Vanilla Ice Cream

(Delicious Vanilla Ice Cream, 2017)

Contents
List of Tables......................................................................................................................................4
List of Figures.....................................................................................................................................5
1.0 Introduction...................................................................................................................................6
1.1 Background...............................................................................................................................6
1.2 Identifying the Issue..................................................................................................................6
1.2.1 Economic...........................................................................................................................6
1.2.2 Quality................................................................................................................................6
1.2.3 Health.................................................................................................................................6
2.0 Statement of Findings...................................................................................................................7
2.1 Blue Ribbon Classic Vanilla Ice Cream....................................................................................7
2.2 Bulla Creamy Classic Vanilla Ice Cream..................................................................................7
2.3 Peters Gluten Free Original Vanilla Ice Cream........................................................................7
2.4 Coles Vanilla Ice Cream...........................................................................................................8
3.0 Criteria..........................................................................................................................................8
3.2 Percentage of Australian Ingredients........................................................................................8
3.3 Fresh or Reconstituted Daily Products......................................................................................8
3.4 Sugars........................................................................................................................................9
4.0 Addressing the Problem................................................................................................................9
4.1 Blue Ribbon Classic Vanilla Ice Cream....................................................................................9
4.2 Bulla Creamy Classic Vanilla Ice Cream..................................................................................9
4.3 Peters Gluten Free Original Vanilla Ice Cream........................................................................9
4.4 Coles Vanilla Ice Cream...........................................................................................................9
5.0 Recommendations.......................................................................................................................10
5.1 Least Recommended...............................................................................................................10
5.2 More Recommended...............................................................................................................10
5.3 Most Recommended...............................................................................................................10
6.0 Conclusion..................................................................................................................................11

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7.0 Appendix.....................................................................................................................................11
8.0 Bibliography................................................................................................................................12

List of Tables
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Table 1: Data on Blue Ribbon Classic Vanilla Ice Cream..................................................................7
Table 2: Data on Bulla Creamy Classic Vanilla Ice Cream...............................................................7
Table 3: Data on Peters Gluten Free Original Vanilla Ice Cream.......................................................7
Table 4: Data on Coles Vanilla Ice Cream..........................................................................................8

List of Figures
Figure 1: Picture of Vanilla Ice Cream...............................................................................................1

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1.0 Introduction
1.1 Background
The four vanilla ice-cream brands analysed are some of the most prominent and affordable stocked
on Australian supermarket shelves. However, is it worth compensating price over quality? To
successfully determine which product is the best, certain criteria will be needed to compare the
brands. These criteria are: price (total), price per litre, package size, percentage of Australian

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 ingredients, fresh or reconstituted dairy products and sugar content. These criteria will highlight
the quality of each product to inform Australian consumers.

1.2 Identifying the Issue

To meaningfully compare the four products the following economic issues will be discussed:

1.2.1 Economic
To each consumer, value and price have high importance when selecting a product to purchase.
Quality, quantity and the total price versus the price per 100g can be easily overlooked by hasty
shoppers. Whereas discerning shoppers determine which vanilla ice-cream product has the best
value and price by comparing and analysing the features of cost, quality and health of the vanilla
ice-cream.

1.2.2 Quality
The percentage of Australian ingredients is labelled on every product in Australian Supermarkets.
An indication as to whether the product is of a higher quality or not is if the percentage of
Australian ingredients is clearly labelled or not. The way in which the dairy products have been
processed is a clear indicator as to the quality of the product.

1.2.3 Health
For the best health interests of the consumer, it is mandatory to list the ingredients used in the
product on the packaging. Companies therefore “can't give false, deceptive or misleading
information to customers” (ACCC, 2010).

2.0 Statement of Findings

The tables below compare the relevant data from each product

2.1 Blue Ribbon Classic Vanilla Ice Cream

Total Cost Cost % of Packag Fresh or Sugar
per Australia e Size Reconstitut s per
Litre n (L) ed Dairy 100m

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 Ingredie Products l
nts
$4.90 $2.45 82% 2L Reconstituted 17.9
Table 1: Data on Blue Ribbon Classic Vanilla Ice Cream

2.2 Bulla Creamy Classic Vanilla Ice Cream

Total Cost Cost % of Packag Fresh or Sugar
per Australia e Size Reconstitut s per
Litre n (L) ed Dairy 100m
Ingredie Products l
nts
$4.90 $2.45 89% 2L Fresh 20
Table 2: Data on Bulla Creamy Classic Vanilla Ice Cream

2.3 Peters Gluten Free Original Vanilla Ice Cream

Total Cost Cost % of Packag Fresh or Sugar
per Australia e Size Reconstitut s per
Litre n (L) ed Dairy 100m
Ingredie Products l
nts
$5.00 $2. 72% 2L Reconstituted 21.7
Table 3: Data on Peters Gluten Free Original Vanilla Ice Cream

2.4 Coles Vanilla Ice Cream

Total Cost Cost % of Packag Fresh or Sugar
per Australia e Size Reconstitut s per
Litre n (L) ed Dairy 100m
Ingredie Products l
nts
$2.65 $1.33 86% 2L Reconstituted 19.1
Table 4: Data on Coles Vanilla Ice Cream

3.0 Criteria
3.1 Total Cost, Cost per Litre

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As explained by Choice Magazine (2019), identifying the value per litre shows the consumer the
true price of the product compared to the sale price. As it “allows you to look past the marketing
and make easy comparisons” (Choice, 2019).

3.2 Percentage of Australian Ingredients

To many consumers knowing the quality of the item by investigating the product ingredients and
where they’re from is very important. “When a food has not been grown, produced or made in a
single country, it will need to display a label identifying the country it was packed in.  In
Australia, country of origin information must be provided for most foods offered for retail sale.”
(ACCC, 2012)

3.3 Fresh or Reconstituted Daily Products

The nutritional value of reconstituted milk and fresh milk is very similar however the quality of the
milk and the quantity of vitamin B is diminished in the process of reconstitution (Lama, 2019). In
this evaluation, the product with the higher quality uses fresh milk in its recipe.

3.4 Sugars
Having an excess intake of sugars that do not occur naturally has been strongly linked with obesity
and type two diabetes (Harvard Health Publishing, 2017). “Too much added sugar can be one of
the greatest threats to cardiovascular disease” (How Sugar Affects the Heart, 2020). Evidence
also now demonstrates an association with high-sugar diets and deaths from heart disease.

4.0 Addressing the Problem

The four vanilla ice-cream products will now be evaluated by the criteria (See Appendix 1).

4.1 Blue Ribbon Classic Vanilla Ice Cream

This product rated well with the least amount of sugars per 100ml of 17.0g. However, reconstituted
dairy products were used in the recipe. This item was priced the same as Bulla selling at $4.90 with
a price per litre of $2.45. Blue Ribbon had the second highest score of 82% Australian ingredients
used in the recipe.

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4.2 Bulla Creamy Classic Vanilla Ice Cream
Bulla rated well as it had the highest percentage of Australian ingredients used in their recipe of
89% and was the only brand that used fresh milk. This product had a selling price of $2.45 per litre
coming to $4.9 for a 2L tub, the same as Blue Ribbon. Bulla had a satisfactory sugar content of 20g
per 100ml.

4.3 Peters Gluten Free Original Vanilla Ice Cream

This product rated poorly in that it had the highest sugar content of 21.7g per 100ml and similarly
scored with the lowest percentage of 72 Australian ingredients used. Peters also had the highest
selling price of $5 and $2 per litre. Reconstituted dairy products were also used.

4.4 Coles Vanilla Ice Cream

This product rated well with the second lowest sugar content per 100ml of 19.1g and the lowest
cost price of $2.65 and $1.33 per litre. However, reconstituted dairy products were used and only
80% of the ingredients used were Australian.

5.0 Recommendations
Australian consumers are health conscious in term of sugar content as there is a growing rate of
obesity, the quality of the product they are spending their money on, the cost of the item and
whether or not it uses real dairy products or reconstituted.

5.1 Least Recommended

Overall, Peters Gluten Free Vanilla had the poorest rating as it contained the highest sugar content
of 21.7g per 100ml (criteria 4). On the other hand, it had the lowest percentage with 72% of the
ingredients being grown and sourced in Australia (criteria 2). Peters also was the most expensive
with an average selling price of $5 and $2 per litre (criteria 1). On top of that, reconstituted dairy
products were used in the recipe (criteria 3).

5.2 More Recommended

Blue Ribbon Classic Vanilla Ice Cream and Coles Vanilla Ice Cream tied being more
recommended than Peters Gluten Free Vanilla in the criteria 3. Coles Vanilla Ice Cream was the

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most the most cost-effective costing $2.65 and $1.33 per litre (criteria 1). Coles also had the
second-best ranking for the amount of sugar per 100ml being 19.1g (criteria 4). Coles only used
80% Australian ingredients which gave it the second lowest score in criteria 2. However,
reconstituted dairy products were used in the recipe (criteria 3). Whereas Blue Ribbon had the least
amount of sugars of 17.9g (criteria 4) and had the second highest score of 82% of the ingredients
being Australian (criteria 2). Reconstituted dairy products were used in the recipe which decreased
its rating (criteria 3). However, this item was priced identically to Bulla, costing $2.45 per litre and
an average selling price of $4.9 (criteria 1).

5.3 Most Recommended

Bulla Creamy Classic Vanilla Ice Cream had the best health rating as it was the only product to use
fresh dairy products (criteria 3). It also had 89% of the ingredients grown and sourced from
Australia which was the highest percentage (criteria 2). However, the sugar content was
satisfactory and contain 20g per 100ml (criteria 4). Bulla was equally cost affective as Bulla with
an identical price per litre of $2.45 and an average selling price of $4.90 (criteria 1). Overall, Bulla
Creamy Classic Vanilla Ice Cream is most recommended for Australian consumers as it does not
comprise the health and quality of the vanilla ice-cream product regardless of price.

6.0 Conclusion
After careful evaluation of each product based off the quality, health and economic criteria, Bulla
Creamy Classic Vanilla was clearly the leading vanilla ice-cream product. Firstly, it was
supporting the Australian economy by using the most Australian ingredients out of the products
analysed. Most importantly it was the only product out of the four to use real dairy products
therefore, it is the only product with vitamin B benefits for the consumer. Even though it didn’t
have the lowest sugar content it was rated third lowest. Consumer would also be enticed to buy this
product as it’s selling price was relatively low compared to the other products evaluated. In
conclusion, Bulla was given the highest score as the brand values the quality of the product and its’
ingredients. This shown as does not take economic short cuts.

7.0 Appendix
Blue Ribbon Bulla Creamy Peters Gluten Coles Vanilla Ice
Classic Vanilla Classic Vanilla Free Original Cream
Ice Cream Ice Cream Vanilla Ice
Cream

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 Total Cost $4.90 $4.90 $5 $2.65
Cost per L $2.45 $2.45 $2 $1.33
Packaging Size 2L 2L 2L 2L
% of Australian 82% 89% 72% 80%
Ingredients
Fresh or Reconstituted Fresh Reconstituted Reconstituted
Reconstituted
Dairy Products
Sugars per 17.9 20 21.7 19.1
100ml
Verdict Same price as Same price as Has an artificial 80% of its’
Bulla with less Blue Ribbon and taste with the ingredients are
sugar however uses fresh dairy highest sugar per Australia and has
uses products. 100ml content. the second
reconstituted However, has a lowest sugar per
daily products high sugar per 100ml content.
100ml content.
Appendix 1: Table comparing the four brands of ice cream

8.0 Bibliography
Australian Competition and Consumer Commission. (2012). Country of Origin. Retrieved from:
https://www.accc.gov.au/consumers/groceries/country-of-origin

Australian Competition and Consumer Commission. (2010). Legislation. Retrieved from

Australian Competition and Consumer Commission website:
https://www.accc.gov.au/about-us/australian-competition-consumer-commission/legislation

Choice. (2019). Australia’s unit pricing laws are effective, but need strengthening. Retrieved
August 9, 2020, from CHOICE website: https://www.choice.com.au/shopping/everyday-
shopping/supermarkets/articles/unit-pricing-laws-are-effective-but-need-strengthening

Delicious Vanilla Ice Cream. (2017). Retrieved August 9, 2020, from

www.recipecommunity.com.au website: https://www.recipecommunity.com.au/desserts-
sweets-recipes/delicious-vanilla-ice-cream/c10691ka-d8dee-503186-cfcd2-fg9asg0l

Harvard Health Publishing. (2017). The sweet danger of sugar. Retrieved from Harvard Health
website: https://www.health.harvard.edu/heart-health/the-sweet-danger-of-sugar

How Sugar Affects the Heart. (2020). Retrieved from www.susquehannahealth.org website:
https://www.susquehannahealth.org/in-the-community/blog/how-sugar-affects-the-heart

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Lama, S. (2019). Is Powdered Milk Less Nutritious Than Fresh Milk? Retrieved August 9, 2020,
from Livestrong.com website: https://www.livestrong.com/article/313491-are-there-
nutritional-differences-between-fresh-milk-and-powdered/

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