Graeter’s Ice Cream has announced a strategic partnership with Churchill Downs to release "Backstretch Bourbon Cherry," the officially licensed ice cream of the Kentucky Derby. This collaboration marks a significant move into the high-value sports and heritage licensing sector for the 156-year-old manufacturer, pairing its traditional "French Pot" production heritage with the global brand equity of the "Run for the Roses."
The product is launching across multiple channels—including direct-to-consumer (DTC) shipping, owned scoop shops, and specialised grocery retail—to maximise seasonal volume during the spring event window.
Licensing and Brand Alignment
The partnership represents a synergy between two historical Kentucky-adjacent entities. Richard Graeter, fourth-generation president and CEO of Graeter’s Ice Cream, indicated that the collaboration was a "natural fit," following a direct engagement with the Churchill Downs leadership team at Graeter’s manufacturing facility.
By securing the "Official Ice Cream of the Kentucky Derby" designation, Graeter’s can:
Elevate Brand Authority: Aligning with a world-renowned sporting event.
Diversify Premium Offerings: Introducing a flavour profile (bourbon, black cherry, and pralines) that targets the "adult-premium" and "souvenir" consumer segments.
Drive Regional and National Sales: Utilising Derby’s national reach to fuel its e-commerce shipping business.
Production Heritage
A core component of the B2B value proposition for Graeter’s remains its proprietary "French Pot" process. Unlike modern high-volume continuous churn methods, this small-batch process results in a denser product with a unique mouthfeel. Churchill Downs’ approval of the "Backstretch Bourbon Cherry" flavour on the "first bite" underscores the importance of artisan-quality production in securing high-tier licensing agreements.
Distribution and Multi-Channel Rollout
Graeter’s is implementing a phased distribution strategy to ensure maximum visibility:
DTC and Scoop Shops: Immediate availability starting April 13 via Graeters.com and all company-owned locations.
Grocery Retail: Rollout beginning April 15 at select high-volume retailers, including Kroger (Ohio, Kentucky, and Indianapolis), Dorothy Lane Markets, Jungle Jim’s, and Central Market in Texas.
The "Off to the Races" Collection
To drive higher average transaction values (ATV), Graeter’s has introduced the "Off to the Races" collection, a tiered bundle strategy for online consumers. This approach targets the "home hosting" and "corporate gift" markets associated with Derby parties:
The Backstretch Six-Pint Pack: A curated selection focused on the new hero flavour and core best-sellers.
The Winner’s Circle Pack: A cross-industry collaboration featuring Kern’s Derby Pie, the official pie of the Kentucky Derby Festival, demonstrating a "complete dessert solution" approach.
The Trifecta Chip Wheelies Pack: A portable, single-serve sandwich format designed for high-volume social gatherings.
