Ice Creams & Frozen Desserts 2010

Market Report Plus 2010

Fourteenth Edition, May 2010Edited by Katie Hughes

ISBN 978-1-84729-630-6

Ice Creams & Frozen Desserts

Ice Creams & Frozen Desserts Foreword

© Key Note Ltd 2010

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Ice Creams & Frozen Desserts Contents


Contents

Executive Summary 1

1. Market Definition 2

REPORT COVERAGE.......................................................................................................................2MARKET SECTORS..........................................................................................................................2Ice Cream...........................................................................................................................................2Frozen Desserts .................................................................................................................................2MARKET TRENDS............................................................................................................................2Summer Performance.......................................................................................................................2Staying In ..........................................................................................................................................3Pricing Issues .....................................................................................................................................3Frozen Food up in Recession............................................................................................................4ECONOMIC TRENDS.......................................................................................................................4Gross Domestic Product....................................................................................................................4Table 1.1: UK Gross Domestic Product at Current and Annual Chain-Linked Prices (£m), 2005-2009 .........................................................................5Household Disposable Income.........................................................................................................5Table 1.2: UK Household Disposable Income Per Capita (£), 2004-2008 ......................................6Inflation.............................................................................................................................................6Table 1.3: UK Rate of Inflation (%), 2005-2009 .............................................................................6MARKET POSITION ........................................................................................................................7The UK...............................................................................................................................................7Table 1.4: Index of UK Household Final Consumption Expenditure on Food and Sugar and Sweet Products by Value at Current Prices (index 2005=100 and %), 2005-2009 ..............................................................................................7Figure 1.1: Index of UK Household Final Consumption Expenditure on Food and Sugar and Sweet Products by Value at Current Prices (index 2005=100), 2005-2009 ..........................................................................................................8Overseas ............................................................................................................................................8

2. Market Size 9

THE TOTAL MARKET......................................................................................................................9Table 2.1: The UK Market for Ice Cream and Frozen Desserts by Sector Value at Current Prices (£m at rsp), 2005-2009 .............................................................9Figure 2.1: The UK Market for Ice Cream and Frozen Desserts by Sector Value at Current Prices (£m at rsp), 2005-2009 .............................................................9



Cost Influences................................................................................................................................10Seasonality ......................................................................................................................................10Other Market Drivers .....................................................................................................................10BY MARKET SECTOR....................................................................................................................11Ice Cream.........................................................................................................................................11 Table 2.2: The UK Ice Cream Sector by Subsector by Value at Current Prices (£m at rsp and %), 2005-2009 ..........................................................................11Take-Home Ice Cream ....................................................................................................................12Table 2.3: The UK Take-Home Ice Cream Subsector by Value at Current Prices (£m at rsp and %), 2005-2009 ..........................................................................12Table 2.4: The UK Take-Home Ice Cream Subsector by Subsector Shares by Value at Current Prices (£m at rsp and %), 2009 ....................................................................13Multipacks ......................................................................................................................................13Premium and Luxury Ice Cream ....................................................................................................13Standard Ice Cream/Frozen Desserts ............................................................................................14Wrapped Impulse Ice Cream..........................................................................................................14Table 2.5: The UK Wrapped Impulse Ice Cream Subsector by Value at Current Prices (£m at rsp and %), 2005-2009 ...........................................................14Table 2.6: The UK Wrapped Impulse Ice Cream Subsector by Subsector Shares by Value at Current Prices (£m at rsp and %), 2009 ....................................................................15Chocolate Snacks ...........................................................................................................................15Children’s Products ........................................................................................................................16Cones ..............................................................................................................................................16Refreshment Products ...................................................................................................................16Other (including individual tubs, etc.) .........................................................................................16Frozen Desserts ...............................................................................................................................16Table 2.7: The UK Frozen Desserts Sector by Value at Current Prices (£m at rsp and %), 2005-2009 ..........................................................................17OVERSEAS TRADE ........................................................................................................................18Table 2.8: Overseas Trade in Ice Cream and Other Edible Ices (£000), 2007 and 2008 .............18

3. Industry Background 19

RECENT HISTORY..........................................................................................................................19NUMBER OF COMPANIES ...........................................................................................................19Table 3.1: Number of UK VAT- and/or PAYE-Based Enterprises Engaged in the Manufacture of Ice Cream by Turnover Sizeband (number and %), 2009 ..................................................................................................................20EMPLOYMENT ..............................................................................................................................20Table 3.2: Number of UK VAT- and/or PAYE-Based Enterprises Engaged in the Manufacture of Ice Cream by Employment Sizeband (number and %), 2009 ..................................................................................................................20REGIONAL VARIATIONS IN THE MARKETPLACE ....................................................................21RETAIL DISTRIBUTION .................................................................................................................21Table 3.3: The UK Take-Home Ice Cream and Frozen Desserts Market by Retail Outlet by Value (%), 2009 .............................................................................................22HOW ROBUST IS THE MARKET?................................................................................................22



LEGISLATION .................................................................................................................................22Compositional Requirements.........................................................................................................23TRADE ASSOCIATIONS ................................................................................................................24British Frozen Food Federation .....................................................................................................24Ice Cream Alliance ..........................................................................................................................24

4. Competitor Analysis 25

THE MARKETPLACE .....................................................................................................................25MARKET LEADERS........................................................................................................................25Fredericks Dairies Ltd .....................................................................................................................25General Mills UK Ltd.......................................................................................................................26R&R Ice Cream UK Ltd ....................................................................................................................26Unilever PLC ....................................................................................................................................27Wrigley Candy UK...........................................................................................................................28Other Companies............................................................................................................................28Almondy..........................................................................................................................................28Country Style Foods........................................................................................................................28Doddington Dairy...........................................................................................................................29Loseley Dairy ...................................................................................................................................29Mackies............................................................................................................................................29Pioneering Foods ............................................................................................................................29Tryton Foods ...................................................................................................................................29Yeo Valley .......................................................................................................................................29OUTSIDE SUPPLIERS.....................................................................................................................29MARKETING ACTIVITY ................................................................................................................30Main Media Advertising Expenditure ...........................................................................................30Table 4.1: Main Media Advertising Expenditure on Ice Cream and Lollies (£000), Years Ending December 2008 and 2009 ..........................................................................30Exhibitions.......................................................................................................................................31

5. Brand Strategy 32

INTRODUCTION ............................................................................................................................32COMPANY BRANDS .....................................................................................................................32Beechdean.......................................................................................................................................32Fredericks Dairies............................................................................................................................32Barretts............................................................................................................................................32Cadbury ...........................................................................................................................................32Del Monte .......................................................................................................................................33Vimto...............................................................................................................................................33General Mills ...................................................................................................................................33Icefresh Foods .................................................................................................................................33Mackies............................................................................................................................................33Mars.................................................................................................................................................33



R&R Ice Cream.................................................................................................................................34Kelly’s ..............................................................................................................................................34Lyons Maid ......................................................................................................................................34Mivvi ................................................................................................................................................34Nestlé...............................................................................................................................................34Thorntons........................................................................................................................................34Unilever ...........................................................................................................................................35Ben & Jerry’s....................................................................................................................................35Carte D’Or .......................................................................................................................................35Cornetto ..........................................................................................................................................35Magnum..........................................................................................................................................35Wall’s Ice Cream..............................................................................................................................36MARKETING ACTIVITY ................................................................................................................36Table 5.1: Main Media Advertising Expenditure on Selected Ice Cream and Frozen Desserts Brands (£000), Year Ending December 2009 .............................................36Fredericks Dairies............................................................................................................................37General Mills ...................................................................................................................................37Mars.................................................................................................................................................37R&R Ice Cream.................................................................................................................................38Fab...................................................................................................................................................38Kelly’s ..............................................................................................................................................38Unilever ...........................................................................................................................................38Ben & Jerry’s....................................................................................................................................38Carte D’Or .......................................................................................................................................38Magnum..........................................................................................................................................38

6. Strengths, Weaknesses, Opportunities and Threats 39

STRENGTHS....................................................................................................................................39WEAKNESSES ................................................................................................................................39OPPORTUNITIES............................................................................................................................40THREATS.........................................................................................................................................40

7. Buying Behaviour 41

CONSUMER PENETRATION ........................................................................................................41Table 7.1: Penetration of Ice Cream and Frozen Desserts in the Last 12 Months (% of adults), 2006, 2008 and 2009 .........................................................41By Sex ..............................................................................................................................................41Table 7.2: Penetration of Ice Cream and Frozen Desserts in the Last 12 Months by Sex (% of adults), 2009 .......................................................................42By Age .............................................................................................................................................42Table 7.3: Penetration of Ice Cream and Frozen Desserts in the Last 12 Months by Age (% of adults), 2009 ......................................................................43



By Social Grade ...............................................................................................................................43Table 7.4: Penetration of Ice Cream and Frozen Desserts in the Last 12 Months by Social Grade (% of adults), 2009 ........................................................43

8. Current Issues 44

BRAND ACTIVITY..........................................................................................................................44Birds Eye ..........................................................................................................................................44Farmhouse Fare ..............................................................................................................................44Good Feeling Solutions ..................................................................................................................44Graham’s Dairies.............................................................................................................................44Marks & Spencer .............................................................................................................................44Waitrose ..........................................................................................................................................44COMPANY ACTIVITY ...................................................................................................................45Heinz Sell Off ..................................................................................................................................45Greencore Exit ................................................................................................................................45FSA Consultation on Saturate Fat and Calories ............................................................................45

9. The Global Market 46

PRODUCT DEVELOPMENT..........................................................................................................46Ambient Ice Cream.........................................................................................................................46‘Homemade’ Ice Cream ..................................................................................................................46GLOBAL MARKETPLACE .............................................................................................................46Fonterra (US)...................................................................................................................................46Humboldt (US) ................................................................................................................................46Tine (Sweden) .................................................................................................................................46Unilever ...........................................................................................................................................47

10. Forecasts 48

INTRODUCTION ............................................................................................................................48The Economy...................................................................................................................................48Gross Domestic Product..................................................................................................................48Table 10.1: Forecast UK Growth in Gross Domestic Product in Real Terms (%), 2010-2014 .....48Inflation...........................................................................................................................................48Table 10.2: Forecast UK Rate of Inflation (%), 2010-2014 ..........................................................49Demographics .................................................................................................................................49Table 10.3: Projected UK Population (000), 2006, 2008, 2010, 2012 and 2014 ..........................49FORECASTS 2010 TO 2014 ..........................................................................................................50Table 10.4: The UK Ice Cream and Frozen Desserts Market by Sector by Value at Current Prices (£m at rsp), 2010-2014 ......................................................50MARKET GROWTH.......................................................................................................................51Figure 10.1: Growth in the Total UK Ice Cream and Frozen Desserts Market by Sector by Value at Current Prices (£m at rsp), 2005-2014 ......................................................51



FUTURE TRENDS ...........................................................................................................................51Loyalty Versus Cost .........................................................................................................................51Ethical Ice Cream ............................................................................................................................52Healthy Eating ................................................................................................................................52Frozen Food Developments ...........................................................................................................52

11. Company Profiles 54

Fredericks Dairies Ltd .....................................................................................................................55General Mills UK Ltd.......................................................................................................................57R&R Ice Cream UK Ltd ....................................................................................................................59Unilever PLC ....................................................................................................................................61Wrigley Candy UK...........................................................................................................................63

12. Company Financials 65

13. Further Sources 66

Associations.....................................................................................................................................66Publications.....................................................................................................................................66General Sources ..............................................................................................................................67Government Sources ......................................................................................................................68Key Note Sources ............................................................................................................................68

Understanding TGI Data 71

Number, Profile, Penetration.........................................................................................................71Social Grade ....................................................................................................................................72Standard Region .............................................................................................................................72

Key Note Research 73

The Key Note Range of Reports 74

Ice Creams & Frozen Desserts


• “Ice cream sales across the winter months are understandably lower than during the summer. However, the ever-increasing popularity of take-home ice cream, the economic downturn and the ‘Big Night In’ phenomenon each kept winter sales buoyant in 2009.”

Charlotte Hambling, Senior Marketing Manager, R&R Ice Cream, Convenience Store, 19th March 2010

• “The ice cream market is so impulsive consumers will pick up small or unknown brands. It is exactly the type of category where brands can launch from scratch and become successful.”

Mike Lewis, Good Feeling Solutions, The Grocer, 6th March 2010

• “The market has been driven by the increase in people eating at home and, when they do so, looking for something that isn’t second-best. They don’t want to compromise.”

Andrew Ovens, Group Marketing Director, Farmhouse Fare, The Grocer, 12th December 2009

© Key Note Ltd 2010 1

Ice Creams & Frozen Desserts Executive Summary

Executive Summary

This Key Note Market Report Plus examines the performance of the UK ice cream and frozen desserts market. By 2009, sales reached a value of £1.16bn at retail selling prices (rsp), having increased by 11.5% since 2005.

Ice cream accounts for the largest share of sales in the market, with take-home products being the bigger subsector ahead of wrapped impulse products. The market has been affected by the recession; while consumers tend to regard sweet treats as affordable indulgences, retailers have continued to use price as a battleground for gaining retail market share. With rises in input costs across the food market feeding through to consumers, suppliers have used a range of strategies to appear to offer better value for money. In-store activity has centred on money-off promotions. However, interest has also been driven by ongoing product and brand innovation, as well as a rise in promotional spending.

Frozen desserts have gained from the overall rise in sales across the frozen foods category, arising from consumers trading on from fresh or chilled foods. Frozen foods are regarded as offering better value for money, while consumer perceptions of the category may also have been lifted by effective promotion by brands such as Birds Eye and Aunt Bessie’s.

Changing eating and social trends have also been effectively targeted by ice cream and frozen desserts. Stay-in and share occasions call for sweet treats. In addition, smaller and single-serve products are positioned for sales for snacking and individual eating occasions.

The ice cream market is dominated by Unilever with its portfolio of brands including Ben & Jerry’s, Carte D’Or and Wall’s. Other major suppliers include R&R Ice Cream, Mars Ice Cream, Frederick’s Dairies and General Mills (Häagen-Dazs). The frozen dessert market is less strongly branded. In 2009, Heinz sold off its interests to PoleStar Foods, while Greencore also sold some of its frozen desserts interests.

Penetration levels for both ice cream and frozen cakes and pastries rose in 2009. A better start to the summer season boosted sales in May and June. Furthermore, suppliers have taken a less seasonal approach to the market with year-round product introductions and promotions.

As the UK emerges from recession, the ice cream and frozen desserts market will see further growth. To some extent this will be cost driven. However, higher spending will also be targeted by more premium and healthy-eating products, as well as strong branding.


Ice Creams & Frozen Desserts Market Definition

1. Market Definition

REPORT COVERAGE

The UK retail market for ice cream and frozen desserts is considered in this Key Note Market Report Plus. The report deals with take-home products and wrapped impulse ice cream, as well as frozen desserts. Soft and scoop ice cream is excluded from the analysis, due to the level of products distributed through foodservice, which falls outside the standard retail market.

MARKET SECTORS

The two main sectors of the ice cream and frozen desserts market can be subdivided into a number of subsectors:

Ice Cream

Ice cream comprises a mixture of dairy ingredients such as milk and non-fat milk, sweeteners, flavourings, colourings, stabilisers and emulsifiers. The market can be further segmented into:

• the take-home sector

• the wrapped impulse sector.

Take-home products are generally items or ice cream bought in quantity for later consumption; impulse products, as the term implies, are generally unplanned purchases for immediate consumption.

Frozen Desserts

Frozen desserts comprise a wide range of sweet products purchased in frozen format, including cakes, cheesecakes and puddings.

This report deals primarily with the retail ice cream and frozen desserts market, with all figures referring to retail sales unless otherwise stated.

MARKET TRENDS

Summer Performance

The ice cream market has traditionally been very seasonal and weather dependent, with the key summer months making or breaking sales performance for the full year. Suppliers have endeavoured to break away from this cycle by targeting year-round sales through product innovation and promotion. However, the wrapped impulse ice cream category in particular is still vulnerable to the vagaries of the weather.



The weather forecasters promised the UK a ‘barbecue summer’ in 2009, but this failed to arrive. The third successive poor summer season did have an impact on ice cream sales. However, a brief spell of good weather and sunshine in May and June did boost sales. In addition, according to Mel Rolfe, Senior Category Manager of ice cream (impulse) at Unilever, as reported by the Convenience Store on 19th March 2010, sunshine is also a contributory factor in boosting impulse sales:

“In the past, we’ve focused on temperature, but now we are more interested in sunny days. That’s because it can be 10°C in March, but a brilliant sunny day and people will buy an ice cream. Sunshine is definitely more of a motivator than just the temperature. If we have three sunny days in a row then we see a massive spike in sales.”

Staying In

The ‘big night in’ continues to be a driver in the ice cream market. The recession provided a further stimulus to staying in as the new going out, which was already established due to developments such as:

• advances in home electronics (wide-screen and digital television formats)

• development of the DVD and Blu-Ray home rental sectors with the success of distributors such as LoveFilm

• success of home gaming systems such as Nintendo Wii

• investment in home and garden improvements, from DIY to extensions.

With a restriction on out-of-home spending on food and entertainment, many households have chosen to indulge with food choices at home. This has included trading on from restaurants to take-aways and ready meals. Ice cream and frozen desserts are conveniently positioned to complete the experience.

With growth in impulse sales restricted by external factors such as the weather, the take-home market has become a greater focus for development. Ice cream and frozen dessert products are targeting not only meal occasions, but also sweet snacking. For example, Unilever describes the ‘nine o’clock moment’ on the couch when consumers want a food treat such as ice cream or chocolate.

The range of single-serve chocolate snack ice creams as well as individual frozen desserts, together with sharing products such as tubs of premium ice cream and whole puddings, offers a strong basis for targeting staying-in eating occasions.

Pricing Issues

Owing to the downturn in total consumer spending, suppliers have been competing harder for their share of expenditure. Successive poor summer seasons to 2009, as well as the increasingly competitive nature of the market, have meant that more emphasis has been placed on price.



Since the early noughties, price-based promotions have been widely used in the ice cream and frozen desserts category, with the offer of money off and price-marked packaging both promoting stronger value-for-money positioning. However, this type of activity encourages more promiscuous shopping on the part of consumers. Rather than developing brand loyalty, the tendency can be for consumers to choose from products on promotion rather than considering the full range.

According to The Grocer, in 2009 Unilever’s Wall’s portfolio of products took the lead in terms of in-store promotions, followed by Nestlé. Ben & Jerry’s carried out the deepest discounts under promotion, followed by Cadbury’s. Mars also offered price promotions and introduced price-marked packs for the take-home range.

These discounts have impacted the wider market. On 6th March 2010, The Grocer reported Ed Culf, the Marketing Director of Häagen-Dazs, as saying:

“. . . we were out-discounted in a big way in the run-up to Christmas and we had to re-think some of our promotional activity. We can’t afford to be selling Häagen-Dazs at less than half price repeatedly. That has caused us a short-term dip.”

Frozen Food up in Recession

The frozen foods category as a whole has gained from the downturn in consumer spending. The category made gains from value-hunting shoppers owing to the lower price points of many food products in frozen format when compared to fresh or chilled.

Frozen food retailer Farmfoods posted an 84% rise in pre-tax profit for 2008, with sales up by 15% due, in part, to the gains made from consumers switching their food shopping preferences towards frozen products. The group had also launched a programme to refresh its stores to reposition itself as a value family supermarket rather than a discounter.

Iceland also reported an improvement in sales in 2009, which it attributed, in part, to customers re-discovering frozen foods.

ECONOMIC TRENDS

Gross Domestic Product

Between 2005 and 2007, GDP continued to grow in both current prices and on the basis of annual chain-linked data. This fostered a favourable environment for brand and product investment.

Growth slowed in 2008 and by early 2009 the UK economy was in official recession, following a second successive quarter without growth in the economy. For the food market this was exacerbated by price hikes in response to cost increases in 2007 and 2008.



The ice cream sector managed ongoing growth throughout, as products are positioned as relatively low-cost indulgences. Even so, product development has tended to centre on established trends and brands, rather than more high-risk strategies.

Household Disposable Income

Per capita household disposable income also showed consistent rises between 2005 and 2008, which led to higher spending in the food category as a whole. This has been evident in the success of value-added brands in terms of health, luxury and convenience. This included the ice cream and frozen dessert market, which saw higher spending on products offering premium recipes and healthier eating options.

While ice cream and frozen desserts are relatively low in price, there has been a focus on product cost, with multi-buy and special-price promotions offering better value-for-money choices for consumers. There has also been some trading down to own-label and standard brands in some categories.

Table 1.1: UK Gross Domestic Product at Current and Annual Chain-Linked Prices (£m), 2005-2009

2005 2006 2007 2008 2009

Current prices 1,254,058 1,325,795 1,398,882 1,448,391 -

% change

year-on-year - 5.7 5.5 3.5 -

Annual chain-

linked GDP 1,254,058 1,289,833 1,322,842 1,330,088 1,265,587

% change

year-on-year - 2.9 2.6 0.5 -4.8

GDP — gross domestic product

Source: Economic & Labour Market Review, February 2010, National Statistics website © Crown copyright material is reproduced with the permission of the Controller of HMSO (and the Queen’s Printer for Scotland)



Inflation

The food sector as a whole suffered from a higher rate of inflation than the economic average from 2007/2008. This was driven by a rise in ingredient costs, with the price of key inputs such as dairy products, sugar and cocoa climbing. In addition, fuel and energy costs were also on the rise. The combination of the two did lead to rising prices in the retail market. As a result, suppliers had to be more strategic in their pricing with, for example, fewer buy-one-get-one-free offers and more money-off promotions.

Table 1.2: UK Household Disposable Income Per Capita (£), 2004-2008

2004 2005 2006 2007 2008

Household disposable income (£) 13,078 13,572 13,952 14,331 14,907

% change year-on-year - 3.8 2.8 2.7 4.0

Source: Economic & Labour Market Review, February 2010, National Statistics website © Crown copyright material is reproduced with the permission of the Controller of HMSO (and the Queen’s Printer for Scotland)

Table 1.3: UK Rate of Inflation (%), 2005-2009

2005 2006 2007 2008 2009

Inflation (%) 2.8 3.2 4.3 4.0 -0.5

Percentage point

change year-on-year - 0.4 1.1 -0.3 -4.5

Note: inflation is at retail price index (RPI).

Source: Monthly Digest of Statistics, February 2010, National Statistics website © Crown copyright material is reproduced with the permission of the Controller of HMSO (and the Queen’s Printer for Scotland)



MARKET POSITION

The UK

National Statistics consumption data indicate that, in terms of current prices, spending on sugar and sweet products grew relatively slowly between 2005 and 2007, but overall spending rose substantially in 2008 and this trend continued in 2009. This latter growth was ahead of the rate of growth in food spending as a whole from 2007, indicating a recovery in penetration terms for sweet products in the food category, following an earlier slideback.

Higher values in the sugar products sector is attributable to a number of factors. Rising input costs boosted price points. In addition, with consumer spending as a whole continuing to rise in 2006 and 2007 as well as the early part of 2008, there was strong development in premium and healthier eating brands and products, which also meant higher spending.

In 2009, with the squeeze on consumer spending in more expensive categories, higher expenditure on relatively low-priced sweet indulgences rose again.

Table 1.4: Index of UK Household Final Consumption Expenditure on Food and Sugar and Sweet Products by Value

at Current Prices (index 2005=100 and %), 2005-2009

Expenditure on Sugarand Sweet Products

Sugar and as a % of TotalFood Sweet Products Expenditure on Food

Year

2005 100 100 12.2

2006 103 99 11.7

2007 108 102 11.6

2008 118 108 11.1

2009 121 115 11.5

Source: Consumer Trends, Q4 2009, National Statistics © Crown copyright material is reproduced with the permission of the Controller of HMSO (and the Queen’s Printer for Scotland)/Key Note



Overseas

The position of the ice cream and frozen desserts markets overseas varies widely from country to country. The US is the undisputed world leader with the biggest total production and consumption of ice cream. Generally, as with many frozen and chilled sectors, the Western economies tend to take the lead in ice cream, as household income is sufficient to finance home freezing and refrigeration equipment and appliances. However, newer markets are developing and seeing greater investment in regions such as the Former Soviet Union and the People’s Republic of China (PRC).

Figure 1.1: Index of UK Household Final Consumption Expenditure on Food and Sugar and Sweet Products

by Value at Current Prices (index 2005=100), 2005-2009

Source: Consumer Trends, Q4 2009, National Statistics © Crown copyright material is reproduced with the permission of the Controller of HMSO (and the Queen’s Printer for Scotland)/Key Note

90

95

100

105

110

115

120

125

2005 2006 2007 2008 2009

Sugar and sweet products Food


Ice Creams & Frozen Desserts Market Size

2. Market Size

THE TOTAL MARKET

Key Note has restated market sizes in this report, in line with current trade data. By 2009, retail sales of ice cream and frozen desserts in the UK were worth £1.16bn, up by 11.5% since 2005 and growing by 5.8% from 2008.

Table 2.1: The UK Market for Ice Cream and Frozen Desserts by Sector Value at Current Prices (£m at rsp), 2005-2009

2005 2006 2007 2008 2009

Ice cream 807 855 820 832 879

Frozen desserts 231 246 253 262 278

Total 1,038 1,101 1,073 1,094 1,157

% change year-on-year - 6.1 -2.5 2.0 5.8

rsp — retail selling prices

Source: Key Note

Figure 2.1: The UK Market for Ice Cream and Frozen Desserts by Sector Value at Current Prices (£m at rsp), 2005-2009


Source: Key Note

0

200

400

600

800

1,000

1,200

1,400

2005 2006 2007 2008 2009

Ice cream Frozen desserts



Cost Influences

The rise in sales values in the sector was, in part, due to cost-driven price inflation; the price of a range of inputs, as well as energy and distribution costs, rose from 2007. While suppliers were able to absorb some of the rise, the impact was felt in higher retail prices. The recession also made consumers more value sensitive. As a result, there was some switching among own label and brands with buying across offers, rather than brand loyalty, being a major feature in the market.

Seasonality

The ice cream sector has done much in recent years to promote year-round sales; even so, the summer season remains key. The ice cream season in 2009 got off to a good start with a warm March leading to a rise in sales of 5% year-on-year. 2009 saw the hottest June weather in the UK for 3 years and this resulted in a strong boost to ice cream sales.

For frozen desserts there is less seasonality, although there is an uplift in sales around occasions such as Christmas, when family eating becomes more of a focus.

Other Market Drivers

The ice cream and frozen dessert market has also been influenced by a range of other factors which have added value, such as:

• the success of premium products

• strong branding and new cross branding from other food categories

• healthier eating products, e.g. offering reduced fat or without artificial additives

• high-profile advertising and promotion by major brands

• consumers trading down to eating in.

Factors that have impacted less positively on the ice cream and frozen desserts market include:

• cutbacks in consumer spending in the recession

• high level of products sold on promotion

• relatively low growth rates in the food market as a whole.



BY MARKET SECTOR

Ice Cream

Ice cream sales dipped in 2007 with the impact of the first of a succession of poor summers showing in the performance of the category. Subsequently, there has been some return to growth as sales reached £879m in 2009.

While summer 2009 was widely perceived as a poor season in terms of weather overall for ice cream, it was a good year. R&R Ice Cream described 2009 as having the best weather for 3 years due to a couple of spells of sunshine and warmth, which boosted the sales in the ice cream category.

The use of confectionery brands in the ice cream sector is now well established. While there is a natural transference in product choice under the same brands from confectionery to ice cream in the summer, the success of the strategy has targeted a range of other factors:

• The major chocolate and sugar confectionery brands are heavily promoted and, as a result, ice cream products can benefit from the halo effect of advertising year round.

• The use of the same brand in both confectionery and ice cream markets reinforces the treat status of the brands.

• Suppliers gain from economies of scale in terms of promotional spending.

Table 2.2: The UK Ice Cream Sector by Subsector by Value at Current Prices (£m at rsp and %), 2005-2009

2005 2006 2007 2008 2009

Take-home ice cream 582 615 602 612 649

Wrapped impulse ice cream 225 240 218 220 230

Total 807 855 820 832 879


Sector share of total market (%) 77.7 77.7 76.4 76.1 76.0


Source: Key Note



The crossover has also established the ice cream formats as year-round treats, with the aid of product development for the take-home market. Furthermore, suppliers have sought to break seasonality through the spread of product launches throughout the year. This has the additional benefits of easing competitive brand introductions, which divide consumer interest.

In hand-held ice cream, many of the larger brands are now distributed through scoop stands and fixtures in a range of outlets. This ranges from Häagen-Dazs Cafés to standalone Cornetto Soft dispensers.

Farm-produced ice creams and regional brands made some gains in 2009 from a rise in domestic tourism. Consumers may develop a loyalty for locally manufactured brands and the visitor market can be particularly significant. This can be extended through foodservice outlets.

Take-Home Ice Cream

Take-home ice cream products are generally bought in quantity for later consumption.

As with the ice cream sector as a whole, there are three main areas of product development:

• flavour variants for established brands

• formats, e.g. in terms of size

• branding often based on cross-over labelling from other sectors, such as confectionery

• healthy eating cutting fat and sugar levels — examples include the focus on frozen yoghurts and sorbets.

Take-home ice cream can be further subdivided in terms of product types, as shown in Table 2.4.

Table 2.3: The UK Take-Home Ice Cream Subsector by Value at Current Prices (£m at rsp and %), 2005-2009

2005 2006 2007 2008 2009

Value (£m at rsp) 582 615 602 612 649


Subsector share of sector sales (%) 72.1 71.9 73.4 73.6 73.8


Source: Key Note



• Multipacks

Multipacks comprise individually wrapped impulse products such as ice cream sticks, bars or cones sold in larger packs for at-home consumption.

The multipack market has gained from promotional activity surrounding the major impulse brands such as Magnum, Mars and Cadbury Flake. Suppliers have also targeted concerns about portion size and healthy eating with smaller products in multipack formats, such as Magnum and Cornetto Minis.

Multipacks continued to be the focus of a high level of price-based promotional activity in 2009. These formats also gain from being perceived as offering better value for money when compared with tub ice cream in terms of the number of servings.

• Premium and Luxury Ice Cream

Premium ice cream includes brands such as Wall’s Carte d’Or; they offer a higher quality product than standard ice creams and are priced below the luxury brands, possibly including dairy ice cream and other premium ingredients or recipes. Luxury or super premium brands are those such as Ben & Jerry’s and Häagen-Dazs, which are priced at an even higher level. Recipes usually contain dairy ice cream in a variety of sophisticated flavours.

Premium and luxury ice creams were able to develop a greater market share in 2008 and 2009 as costs rose across the category as a whole. Many luxury brands were sold on offer with the price comparison seeming more favourable as higher prices became evident across the fixture.

Table 2.4: The UK Take-Home Ice Cream Subsector by Subsector Shares by Value at Current Prices

(£m at rsp and %), 2009

Value(£m at rsp) % of Total

Multipacks 331 51.0

Premium/luxury ice cream 221 34.1

Standard ice cream/frozen desserts 97 14.9

Total 649 100.0


Source: Key Note



The leading brands in the market play an important role in promoting the sector with advertising as well as public relations (PR) activity. This has been important in maintaining and growing sales by encouraging consumers to trade up in the category. In addition, products such as ice cream are regarded by consumers as manageable indulgences as well as permissible treats. This may be reinforced by the choice of a branded product rather than an own-label one.

Retailer own-label ranges account for a significant share of sales, particularly as the multiples have successfully developed their own ranges including luxury brands.

• Standard Ice Cream/Frozen Desserts

Standard ice cream comprises value- and mid-priced tub or block ice cream ranges. These are generally supplied in a range of basic flavours and are often bought to be served as an accompaniment or with additional products such as syrups, toppings and others, rather than alone.

The market is dominated by retailer own-label products with limited branded activity. The recession encouraged some trading down from premium to standard brands and suppliers targeted this with in-store price-based offers. Moreover, the Lyons Maid brand was relaunched in this category in 2008, followed by new product introductions in 2009.

Wrapped Impulse Ice Cream

Wrapped impulse ice cream sales comprise unplanned purchases for immediate consumption. Sales were valued at £230m in 2009.

Table 2.5: The UK Wrapped Impulse Ice Cream Subsector by Value at Current Prices (£m at rsp and %), 2005-2009

2005 2006 2007 2008 2009

Value (£m at rsp) 225 240 218 220 230


Subsector share of sector sales (%) 27.9 28.1 26.6 26.4 26.2


Source: Key Note



The impulse ice cream sector is much more directly affected by the weather and the summer season than the take-home market. The hot summer forecast at the start of 2009 failed to materialise, but there was a spell of hot weather in May and June, which provided a boost to sales and was enough to augment sales levels ahead of 2008 values.

The performance of the main products in the wrapped impulse market is considered in Table 2.6.

• Chocolate Snacks

Chocolate snacks continue to account for the highest share of sales in wrapped impulse ice creams. These products are priced at the higher end of the market and are often heavily supported in terms of brand investment.

There was a substantial level of product activity with the major suppliers all launching new products and formats. Wall’s introduced Magnum Temptations, followed by Magnum Gold in 2010. R&R Ice Cream further extended its confectionery branded ranges and Fredericks added to its branded portfolio. The addition of new products, such as Gold to the Magnum range in 2010, can serve as a focus for promotional activity, encouraging consumers to take a new look at the brand as a whole, not simply the new product.

Table 2.6: The UK Wrapped Impulse Ice Cream Subsector by Subsector Shares by Value at Current Prices

(£m at rsp and %), 2009

Value(£m at rsp) % of Total

Chocolate snacks 97 42.2

Children’s products 53 23.0

Cones 41 17.8

Refreshment products 28 12.2

Other (including individual tubs, etc.) 11 4.8

Total 230 100.0


Source: Key Note



• Children’s Products

Children’s products include many of the more traditional products and brands retailing through outlets such as confectioners/tobacconists/newsagents (CTNs), including names such as Fab and Strawberry Mivvis. The products tend to be priced below chocolate snacks or adult refreshment lines to appeal to pocket-money spenders as well as parents.

New product launches in 2009 included Barretts Refreshers and Vimto brands.

• Cones

Cones comprise ice-cream-filled cones, with the leading brand continuing to be Cornetto. Cadburys has also had considerable success with its Flake Cone.

• Refreshment Products

The adult refreshment sector includes brands such as Solero and Calippo. Sales of these products tend to be more directly affected by relative temperatures than chocolate and cone products, for example.

Some brands have been targeting the healthy eating market as most products are naturally lower in fat and sugar than chocolate snacks or cones. There has also been a shift in positioning for some brands with the use of more natural and fruit-juice-based flavours, as well as lower sugar content.

• Other (including individual tubs, etc.)

Other products include items such as individual tubs of branded ice cream which retail through a range of outlets including cinemas and theatres. There is a brand presence in the market, although the choice of brand at any given outlet is often limited to one.

Frozen Desserts

The main subsectors in the frozen desserts sector are as follows:

• gateaux and large desserts

• pies and pastries

• cheesecakes

• hot eating desserts

• individual desserts.



Frozen desserts gained from a consistent rise in sales from 2005 to reach a value of £278m by 2009.

The frozen food market as a whole has seen an upturn with the squeeze on consumer spending. There has been some trading on from more expensive fresh and chilled foods to frozen, which is regarded as better value for money.

Frozen desserts tend to be positioned in value or standard prices. Premium pricing and products have had difficulty establishing themselves in this market as the consumer demand has not been there. The trend has been for higher spending to be reserved for other formats. However, the recent entry of brands such as Carte D’Or and Farmhouse Fare to the frozen desserts fixture will lift the brand profile and add investment to the category. Almondy, which supplies premium cheesecakes, has also bucked the trend. However, other brands such as Gü and Pudz have had less success.

The category has also gained from a rise in family eating occasions. With households choosing to eat in rather than spend in restaurants, the provision of a pudding course is often regarded as an indicator moving the meal from everyday into more indulgent eating. In addition, the use of prepared rather than cooked-from-scratch desserts has become more acceptable, even at more formal occasions such as dinner parties.

Individual desserts sold in multipacks have also made gains. The large number of single and dual households, as well as staggered eating occasions in family homes, means that there is demand for convenient single-serve products as an alternative to larger desserts. Interest in healthier eating and portion control have also boosted this demand.

Table 2.7: The UK Frozen Desserts Sector by Value at Current Prices (£m at rsp and %), 2005-2009

2005 2006 2007 2008 2009

Value (£m at rsp) 231 246 253 262 278

% change year-on-year - 6.5 2.8 3.6 6.1

Sector share of total market (%) 22.3 22.3 23.6 23.9 24.0


Source: Key Note



OVERSEAS TRADE

The data in Table 2.8 refer to ice cream and edible ice products; there are no separate figures available for frozen desserts.

The UK ice cream market is largely self-sufficient due, in part, to the relatively high cost of transportation involved in distributing ice cream products internationally. This is also the reason behind the vast majority of trade taking place with other EU partners. However, the ice cream market is strongly influenced by the global market leader, the US, in terms of product development and innovation.

Table 2.8: Overseas Trade in Ice Cream and Other Edible Ices† (£000), 2007 and 2008

Imports Exports

2007 2008 2007 2008

Intra-EC 135,722 160,003 44,496 44,065

Extra-EC 3,759 2,616 3,297 4,369

† — commodity code: 1205

Source: uktradeinfo, HM Revenue & Customs © Crown copyright


Ice Creams & Frozen Desserts Industry Background

3. Industry Background

RECENT HISTORY

The ice cream and frozen dessert market has seen considerable development over the past two decades. Ice cream was traditionally a summertime treat or dessert accompaniment, while the range of frozen desserts available was strictly limited.

The introduction of premium brands to the ice cream market was the stimulus to change, with ice cream seen as a treat or indulgence in itself and the range available for take-home consumption also growing. The success of brands such as Häagen-Dazs allowed ice cream to develop a more differentiated market with a range of price tiers and product offers. Mars’ successful cross branding into the ice cream sector was a major driver in the development of the wrapped impulse and multipack ice cream subsectors. Subsequently, the category has become increasingly more sophisticated with a number of high-profile products and ranges.

The development of the frozen dessert sector was strongly influenced by US and continental trends, with overseas recipes forming the basis for many products which were introduced into the market in the 1990s. The catering trade was also a major influence, as products tried at restaurants or out of the home were demanded for in-home consumption, boosting the retail market. Increased overseas travel, as well as the booming interest in cookery media, were further factors. However, the demise of cooking skills, which has made the home made dessert relatively rare, has undoubtedly been a major influence.

NUMBER OF COMPANIES

There is only a handful of large UK VAT- and/or PAYE-based enterprises engaged in the manufacture of ice cream, with approximately five generating annual sales of more than £5m in 2009. The implication is that there is a very small number of companies that actually supply the national market, with smaller groups more likely to be regional or quite specialist in outlook.

There are significant barriers to entry for new players in the market. As well as exacting safety and hygiene legislation, other food-related legislation must also be complied with. However, of greater significance is the high level of investment necessary to gain national success. Regional brands must also compete with established players.

There are no separate figures available for the frozen dessert sector. Nevertheless, the number of companies is likely to be limited by similar barriers to entry.



EMPLOYMENT

The majority of manufacturers in the ice cream sector are relatively small in terms of employee numbers. This is due to the processed nature of ice cream production, which means this is a capital- rather than labour-intensive sector.

Table 3.1: Number of UK VAT- and/or PAYE-Based Enterprises Engaged in the Manufacture of Ice Cream by Turnover

Sizeband (number and %), 2009

Number ofEnterprises % of Total

Turnover Sizeband (£000)

0-49 20 8.3

50-99 35 14.6

100-249 80 33.3

250-499 40 16.7

500-999 30 12.5

1,000-4,999 30 12.5

5,000+ 5 2.1

Total 240 100.0

Source: UK Business: Activity, Size and Location, National Statistics © Crown copyright material is reproduced with the permission of the Controller of HMSO (and the Queen’s Printer for Scotland)/Key Note

Table 3.2: Number of UK VAT- and/or PAYE-Based Enterprises Engaged in the Manufacture of Ice Cream by Employment


Number of Enterprises % of Total

Number of Employees

1-4 130 54.2

5-9 60 25.0

10-19 30 12.5

Table continues...



REGIONAL VARIATIONS IN THE MARKETPLACE

There is little regional variation in the marketplace for ice cream. The effectiveness of the retail distribution base means that there are few barriers to market supply. However, impulse sales may be more dependent on areas of heavy customer traffic such as tourist attractions in the summer season.

RETAIL DISTRIBUTION

Retail distribution in the take-home ice cream and frozen dessert market, similar to the food market as a whole, is dominated by the multiples. In part, their success is due to the amount of space they are able to give over in-store to product ranges.

As well as branded products, the multiples have developed a range of own-label products and have contributed to the success of the luxury end of the ice cream sector by developing their own quality labels. The freezer has been the focus of a high level of promotional activity including that surrounding new brands and products in-store, although there has been a tailing off in buy-one-get-one-free offers in favour of money-off promotions.

Other retailers tend to offer a narrower range of brands and focus on the bigger suppliers. As these stores tend to cater to impulse, emergency and top-up requirements, they are less likely to carry out promotional activity but utilise supplier merchandising and promotion.

...table continuedNumber of Enterprises % of Total

Number of Employees

20-49 20 8.3

50+ 0 0.0

Total 240 100.0

Source: UK Business: Activity, Size and Location, National Statistics © Crown copyright material is reproduced with the permission of the Controller of HMSO (and the Queen’s Printer for Scotland)/Key Note

Table 3.2: Number of UK VAT- and/or PAYE-Based Enterprises Engaged in the Manufacture of Ice Cream by Employment




HOW ROBUST IS THE MARKET?

The ice cream sector is relatively small in terms of suppliers, although the distribution base is much bigger. As with other parts of the food sector there is a vulnerability to food scares. However, in recent years such publicity in other sectors, including confectionery and chicken, have proved to be relatively short lived.

There is pressure on ice cream, as with many other sectors, from the health lobby, which urges consumers to cut back on high-fat and high-calorie foods. However, the ice cream and frozen dessert market has already started to respond with the introduction of reduced-fat and -calorie products. The large scale of major players in the market has enabled them to be pro-active.

LEGISLATION

The main food laws applying across the industry are as follows:

• The Food Safety Act 1990 (as amended) provides the framework for all food legislation in Great Britain (similar legislation applies in Northern Ireland).

• The General Food Law Regulation (EC) 178/2002 is EC legislation on general food safety.

• The General Food Regulations 2004 (as amended) provides for the enforcement of certain provisions of Regulation (EC) 178/2002 (including imposing penalties) and amends the Food Safety Act 1990 to bring it in line with Regulation (EC) 178/2002.

(Taken from Food.gov, March 2010)

Table 3.3: The UK Take-Home Ice Cream and Frozen Desserts Market by Retail Outlet by Value (%), 2009

Multiple grocers/co-operatives/freezer centres 83

Symbol and independent grocers 8

Confectioner/tobacconists/newsagents

and forecourts 4

Others 5

Total 100

Source: Key Note



More detailed legislation includes the following:

• Colours in Food Regulation 1995 and amendments 2000 and 2001

• Consumer Protection Act 1987

• Flavourings in Food Regulations 1992

• Food (Lot Marking) Regulations 1996

• Food Additives Regulations 1992

• Food Labelling Regulations 1996

• Food Premises Registration (Amendment) Regulations 1997

• General Product Safety Regulations 1994

• Imported Food Regulations 1997

• Materials and Articles in Contact with Food Regulations 1987

• Miscellaneous Food Additive Regulations 1995 and amendments: 1995, 1999, 2001 and 2003

• Organic Products Regulations 2001

• Sweeteners in Food Regulations 1995 and amendments: 1996, 1997, 1999, 2001, 2002 and 2003

• The Contaminants in Food (England) Regulations 2003

• The Food Standards Act 1999

• The Organic Products (Imports from Third Countries) 2003

• Trade Descriptions Act 1968

• Weights & Measures Act 1988.

Compositional Requirements

There are compositional requirements for ice cream in the UK:

The description ‘ice cream’ shall not be applied to any food other than the frozen product containing not less than 5% fat and not less than 2.5% milk protein, not necessarily in natural proportions.

If an ice cream is described as ‘dairy ice cream’ it should conform to the above composition, but the fat shall consist entirely of milk fat and contain no other fat other than that present by use of an ingredient.

Euroglaces is the European trade association for the ice cream sector. The Euroglaces code also gives compositional requirements for water ice or ice lollies, milk ice, fruit ice and sorbet, although this code is not legally binding in the UK.



TRADE ASSOCIATIONS

British Frozen Food Federation

The British Frozen Food Federation (BFFF) represents a range of companies involved in the frozen food sector, from large groups to small and medium-sized enterprises (SMEs). The Federation’s main aim is to promote and protect the interests of the frozen food industry.

The BFFF aims:

• to provide membership service on technical, legislative and health and safety issues

• to offer membership benefits including discount schemes and a trade enquiry service

• to address industry issues

• to create networking opportunities for members

• to represent the interests of the frozen food sector to external bodies.

Ice Cream Alliance

The Ice Cream Alliance (ICA) provides a forum for suppliers, retailers, caterers and manufacturers of ice cream products.

The ICA has more than 650 members, which are segregated into nine geographically-based Divisions, each of which has its own annually elected Committee.

The ICA publishes a monthly magazine, Ice Cream, in addition to organising the annual trade conference, together with exhibitions, competitions and regional social events.

The organisation has long-established links with all government bodies, particularly the Department of Environment, Food and Rural Affairs (DEFRA) and the Department of Health (DoH), and is continually involved in putting forward and supporting the views of its members.

(Taken from ice-cream.org, April 2010)


Ice Creams & Frozen Desserts Competitor Analysis

4. Competitor Analysis

THE MARKETPLACE

The ice cream and frozen desserts market is dominated by a handful of suppliers in the branded market; these groups have the means to maintain a high level of product development and ongoing promotion. Some of the larger suppliers are also engaged in providing products for the retailer own-label market. There are also smaller regional brands and groups supplying smaller geographic areas or specialising in narrower product ranges.

MARKET LEADERS

This listing is alphabetical and does not reflect the relative market position of the companies involved. Further details on brand activity can be found in Chapter 5 — Brand Strategy.

Fredericks Dairies Ltd

Company Structure

Fredericks Dairies Ltd is an independently owned company which supplies the Cadbury, Bassetts, Lyle’s Golden Syrup, Del Monte Smoothies, Vimto and Barratts Refresher brands, as well as products for the retailer own-label market. The company also produces the Antonio Federici Gelato Italiano ice cream range.

Current and Future Developments

In March 2010, Cadbury renewed its contract with Fredericks Dairies to continue its licensing partnership for a further 10 years. This will include products supplied under the Cadbury brand as official confectionery and ice cream for the 2012 Olympics. The group also managed a £9m investment to increase distribution and capacity as well as to double the impulse sales team and marketing budget for the year.

Fredericks also agreed new licensing deals with Vimto and Tangerine Confectionery, leading to the roll-out of Vimto and Refreshers ice lollies.

As reported by the Daily Post (Liverpool) on 3rd February 2010, in the year ending August 2009, Fredericks Dairies announced a return to profits in its Directors Report, stating that:

“The focus on core activities and ensuring a greater degree of sales forecast accuracy and production planning has allowed the business to report improved margins and improve its working capital throughout the year . . .”.



Financial Results

In the year ending 31st August 2009, Fredericks Dairies Ltd announced sales of £38.6m and made a pre-tax profit of £2.7m. This followed a turnover of £60.9m and a pre-tax loss of £999,000 in 2007/2008.

General Mills UK Ltd

Company Structure

General Mills UK Ltd is a US-owned food group involved in the supply of ice cream, ambient packaged foods, pre-packed frozen and chilled pastry and dough products, canned vegetables and other foods. Its involvement in the ice cream sector is through ownership of the super-premium Häagen-Dazs brand. The brand retails through retail, cafés and foodservice, as well as Häagen-Dazs cafés.


Häagen-Dazs recorded a dip in sales in 2009. This was attributed to the high level of discounting among rival brands in the super-premium ice cream sector in peak seasons such as summer and Christmas. In response, Häagen-Dazs revealed that it planned to focus on quality and ‘experience’ to draw back and retain consumers, as well as to encourage them to pay full price for the brand.

From October 2009, Häagen-Dazs backed its range with the Melt Together campaign.

Financial Results

General Mills UK Ltd reported a turnover of £233.5m and a pre-tax profit of £3.7m in the year ending 30th April 2009. This marked an 11.6% increase from the previous year’s turnover of £209.1m, and an improvement from a pre-tax loss of £5.3m.

R&R Ice Cream UK Ltd

Company Structure

R&R Ice Cream UK Ltd supplies retailer own-label ice cream, as well as branded products. Brands supplied by the company include Nestlé, Skinny Cow, Treats, De Roma, Ribena, Thorntons’ Rachel’s Organics, Movenpick and Rodda’s.




At the end of 2009, R&R announced that it had invested £3m in its manufacturing process to make it more self-sufficient and improve green credentials. 60% of plastic packaging production was taken in-house and facilities were extended to enable the group to produce the ripple sauces used in some of its products.

Financial Results

In the year ending 28th December 2008, R&R Ice Cream UK Ltd generated a pre-tax profit of £17.8m on a turnover of £132.2m. In the previous year ending 30th December 2007, the company made a turnover of £119.1m, along with a pre-tax profit of £9.9m.

Unilever PLC

Company Structure

Unilever PLC supplies food, personal care and homecare products. The group is involved in the ice cream and frozen desserts market through its Wall’s and Ben & Jerry’s subsidiaries.

Wall’s Ice Cream divides its manufacturing in three parts: the take-home range, the impulse range and the children’s range. The take-home range consists of Wall’s family tubs, the Viennetta range of ice cream desserts and the premium Carte D’Or tubs. The impulse range includes brands such as Magnum, Solero and Cornetto. The children’s range is specially formulated for children and includes brands such as Mini Milk.

Unilever also owns the Ben & Jerry’s brand.


In summer 2009, Unilever revealed that it would have to cut the number of special offers on its ice cream brands due to manufacturing problems at its central distribution plant in Gloucester, which resulted in supply problems. The situation was exacerbated by strong sales arising early in the summer due to the hot June weather.

In February 2010, Ben & Jerry’s announced that it planned to be a fully certified Fairtrade brand globally by 2013. Within the UK, the brand will be fully Fairtrade by 2011. The roll-out began in March 2010 with 60% of the range certified by May. At the beginning of 2010, the brand was valued at £63m in UK sales.

Financial Results

Unilever PLC announced a turnover of €39.82bn and a pre-tax profit of €4.92bn in the calendar year for 2009. This marked a fall from a turnover of €40.52bn and a pre-tax profit of 7.13bn recorded in 2008.



Wrigley Candy UK

Company Structure

Mars, which trades under Wrigley Candy UK, is best known in the food sector for its confectionery portfolio. Many of these brands have been extended into the ice cream market with both take-home and impulse products available.

Mars completed its acquisition of Wrigley in a $23bn deal which gained shareholder approval in October 2008.

Current/Future Developments

In 2009, Mars ice cream focused on a strategy of ‘fewer, bigger, better’, centering on a core range of products.

During 2010 the group looked to focus on a core range of nine products under six brands. The range will gain from the halo effect of activity carried out for corresponding confectionery brands such as Mars, Snickers and Galaxy.

Financial Results

In the year ending 27th December 2008, Wrigley Candy UK reported a turnover of £1.21bn and a pre-tax profit of £204.4m.

Other Companies

There are a number of other groups involved in the ice cream and frozen desserts market supplying retailer and manufacturer brands. Some of these are outlined below.

Almondy

Almondy supplies premium frozen desserts including frozen tarts and cheesecakes in variants including Daim and Snickers.

The company was acquired by Segulah III, a Norway-based company, in June 2008.

Country Style Foods

Country Style Foods extended its interests in the frozen desserts category in 2006 with the acquisition of Schwan’s production facilities and the acquisition of RHM’s frozen desserts business in 2007.

The company supplies frozen foods including desserts for the retailer own-label market, as well as its own manufacturer brands and products under licence from Cadburys. The own-label product range includes meringues and pavlovas, gateaux, cheesecakes, layered desserts and tarts. Other brands supplied by the group include Sara Lee, Kaysens and Death by Chocolate.



Doddington Dairy

Doddington Dairy began producing ice cream in 2000. The group supplied products mainly in the north east of England and south Scotland through ASDA and Waitrose, together with specialist stores.

Loseley Dairy

Loseley Dairy supplies a range of ice cream and ice cream products to the impulse and foodservice markets. The company was subject to a management buy-in in 2008. Products supplied to the impulse market include snack tubs of ice cream, choc ices, Maximum chocolate-covered ice cream sticks, Milk Lollies and Fruit Cool push-up lollies.

Mackies

Mackies is a Scotland-based group which supplies a luxury ice cream range.

Pioneering Foods

Pioneering Foods was established in August 2005 through the merger of the Icefresh Foods and Heaven Made Foods frozen foods businesses; supplying frozen and chilled products. Heaven Made Foods produces a range of handmade premium frozen and chilled desserts under private-label for retail and foodservice sectors. Icefresh Foods supplies own-label desserts and ice cream to the major multiples.

Tryton Foods

Tryton Foods supplies a range of traditional frozen foods including desserts under the Aunt Bessie’s brand. The traditional puddings range includes pies, crumbles and tarts, as well as jam roly poly.

Yeo Valley

Yeo Valley supplies organic ice cream at the luxury end of the market. The group supplies Vanilla ice cream and Strawberry Frozen Yoghurt.

OUTSIDE SUPPLIERS

The ice cream and frozen desserts market operates within the context of the food industry, drawing inputs from other food groups, subject to safety and hygiene legislation and competing in a tough market. As a result, manufacturers and suppliers are dependent on many parties for successful business operation.



Food ingredients groups supply edible inputs for the manufacture of ice creams and frozen desserts. Suppliers vary considerably depending on the product under manufacture; many items are a commodity type in nature, such as sugar and cocoa. However, there are also more specialist additions such as flavours and fragrances. While the larger processors may deal directly with food ingredients manufacturers and chemical companies, many will tend to negotiate through a third party, wholesalers or agents for the product desired. More tailored inputs may be specified directly.

The ice cream and frozen desserts market is a processing industry and the machinery necessary to produce the goods will generally be specified and purchased direct from the manufacturer or more commonly through an agent of some sort. Equipment used by the sector includes food-freezing plant, fillers, freezers and forming machines. Packaging is a major factor in order to display the product effectively and safely. As with all food, quality and safety of the product are of key importance, which is where the food science laboratories provide an important service.

Tertiary suppliers effectively get the product to the consumer. The product appearance, name and contents are all factors in the consumers’ perceived purchasing decision and the various marketing agencies contribute to this package. Distributors in the market will get the goods to the retailer and play a key role in this sector due to the need for stringent temperature control.

MARKETING ACTIVITY

Main Media Advertising Expenditure

Above-the-line investment is primarily carried out by ice cream suppliers, as the frozen desserts sector has fewer strong brands and is less driven by impulse sales.

Table 4.1: Main Media Advertising Expenditure on Ice Cream and Lollies (£000), Years Ending December 2008 and 2009

% Change2008 2009 2008-2009

Major brands 13342 17,249 29.3

Sub-threshold brands 508 308 -39.4

Total 13,850 17,557 26.8

Source: Nielsen Media Research, 2008 and 2009/Key Note



Advertising and above-the-line activity rose substantially in 2009, when compared with 2008. The early strong performance of the market in May and June offered the chance to capitalise on sales in the impulse market. The major marketing spend was on new products launches such as the new Ben & Jerry’s flavour Chocolate Macadamia and Carte D’Or Cinnamon Waffle variant.

Exhibitions

• Ice Cream Alliance Exhibition — this will be held at the Yorkshire Event Centre from 2nd to 4th November 2010

• ISM International Sweets and Biscuits Fair — this will take place in Cologne from 30th January to 2nd February 2011

• International Food & Drink Trade Show — IFE — this will be held from 13th to 16th March 2011 at ExCeL in London

• Anuga — World of Food, International Food Fair — this will be held in Cologne, Germany, from 8th to 12th October 2011

• Food and Drink Expo — this will take place at the National Exhibition Centre (NEC) in Birmingham from 25th to 28th March 2012.


Ice Creams & Frozen Desserts Brand Strategy

5. Brand Strategy

INTRODUCTION

The ice cream and frozen desserts market contains many major brands. The impulse ice cream market in particular encourages investment in promotion and marketing which extends into take-home products.

Unilever’s brand portfolio, including Magnum, Cornetto, Carte D’Or and Ben & Jerry’s, together with its considerable financial muscle for investment in these brands, has given it a lead in the ice cream market. Its major rivals are R&R and Fredericks Dairies, with other brands such as Häagen-Dazs competing in certain categories.

Beneath these market leaders is a host of smaller brands, ranging from small farm-manufactured ice creams serving local markets and upwards.

Within the frozen desserts market there is more fragmentation, with retailer own label taking a leading part. Manufacturer brands tend not to have the marketing strength and finances given to ice cream ranges.

COMPANY BRANDS

This section outlines some of the major brand activity undertaken by companies operating in the ice cream and frozen desserts market from the end of 2007. The listing is alphabetical according to company.

Beechdean

In November 2009, Beechdean launched a 2-litre (l) pack for its Farmhouse Dairy ice cream. The move formed part of a brand revamp which also included a packaging redesign, featuring labelling and images stressing the brand’s rural heritage.

Fredericks Dairies

Barretts

Refresher ice lollies were introduced in 2010, following a licensing deal with Tangerine Confectionery.

Cadbury

New products for 2009 included a Dairy Milk Fruit & Nut stick in the impulse range. A limited-edition 1l Cadbury Crème Egg tub ice cream was also introduced in time for Easter.



Del Monte

For 2009, a new Del Monte Superfruit Smoothie was added to its range. The stick combined blueberry, pomegranate and cranberry.

Vimto

Vimto ice lollies were introduced in 2010 following the agreement of a new licensing deal.

General Mills

At the beginning of 2009, Häagen-Dazs introduced a new range of ice cream smoothies. Mango & Apricot and Raspberry & Summer Berries ice cream smoothies were available in 500-milliletre (ml) packs. The products combined fruit sorbet and ice cream.

For Christmas 2009, the new limited-edition flavour introduction was Mascarpone, Passion Fruit & Truffles. According to General Mills, research suggests that limited-edition flavours can attract new consumers to the brand.

In March 2010, Häagen-Dazs launched its new summer flavour: Chocolate, Pralines & Caramel. The Chocolate Choc Chip ice cream variant also gained from a new recipe.

Icefresh Foods

In 2009, Icefresh Foods introduced new WeightWatchers Smoothie Sticks in Mango & Passion Fruit and Raspberry & Blackberry flavours. WeightWatchers Luxury Iced Desserts were also launched in single-serve pots in Strawberry Meringue, Chocolate Brownie and Caramel Shortcake flavours.

Mackies

In spring 2010, Mackies introduced a new super-premium ice cream range: Mackie’s Extra Posh ice cream. The initial portfolio comprised Madagascan vanilla, toffee fudge and Belgian chocolate flavours.

Mars

For 2009, Mars reported that Galaxy multipacks increase in sales by 38% due to the introduction of Galaxy Caramel Craving packs.

Galaxy Triple Chocolate was introduced in 2010, comprising chocolate-coated ice cream swirled with chocolate sauce.



R&R Ice Cream

Kelly’s

For 2009, Kelly’s launched hand-finished cones in traditional Cornish flavours — Strawberries & Cream and Toffee Fudge — in multipacks of four.

In 2010, promotional activity for the Kelly’s brand highlighted that all of its cream and milk are sourced locally. A Mint Chocolate Clotted Cream Cone was also introduced.

Lyons Maid

The Lyons Maid ice cream brand was relaunched in September 2008 and was extended in 2009 with the introduction of an eight-pack of Raspberry Ripple Mousse, three packs of Milk Chocolate sticks and 800ml Vanilla Raspberry Ripple and Neapolitan oval tubs. Packs of Strawberry, Blackcurrant and Pineapple Splits were also launched.

Mivvi

Mivvi Divinely Creamy was launched into the impulse market in 2010. The product targeted the adult refreshment treat sector with 20% real fruit and the inclusion of clotted cream.

Nestlé

New products for 2009 included Rowntrees Fruit Screamers, mini ice lollies with 20% real fruit juice. The Huge Value Nestlé bars range was also extended with Lion ice cream bars, priced at £1 for a pack of four.

Kit Kat Cone was introduced in impulse format in 2009. R&R reported strong sales for the brand in its first year, claiming it took seventh place in terms of top sellers in the individual ice cream sector for its first season.

Aero Double Bubble was introduced at the start of 2010, combining mint and chocolate ice creams with aerated pieces of chocolate. Nestlé planned to spend £7m on the Aero brand in 2010. Aero Bubbleball, a frozen chocolate and mint mousse with a ball of Aero chocolate in the pot base, was also introduced, together with Aero stick ice creams.

The Caramac brand was introduced in ice cream bar format for the first time, in multipacks of four.

Nesquik Lollies were launched targeting the children’s market. The sticks were available in strawberry and chocolate variants, each containing 30% of the recommended daily amount (RDA) calcium intake.

Thorntons

Two new stick ice creams were added to the Thorntons range in 2009 —White Delight and Mint Choc Truffle — while Tropical Twist frozen yoghurt joined the in-store scoop range.



Unilever

Ben & Jerry’s

The Ben & Jerry’s brand saw substantial growth in 2009 with a rise of 23.9% in value according to Unilever. This was aided by the success of its frozen yoghurt introductions; in addition, the brand was one of the most heavily promoted in-store during the year. For 2010, Unilever plans a spend of £4m on the brand; it was also announced that the brand would be fully Fairtrade by the end of 2011.

From March 2010, Fairly Nuts — the winning recipe from Ben & Jerry’s 2009 Do the World a Flavour — went on sale. The products comprise caramel ice cream with a caramel swirl and praline almond clusters.

Carte D’Or

For 2009, Carte D’Or introduced a new Caramel Cinnamon Waffle flavour ice cream tub, comprising caramel ice cream with a hint of cinnamon and waffle pieces.

In October 2009, it was announced that the Carte D’Or brand was to enter the frozen dessert category. The initial offering comprised three desserts: Madagascan Vanilla & Chocolate Cheesecake, Madagascan Vanilla & Raspberry and Chocolate Truffle & Raspberry Torte, all retailing in packs of six.

Three new flavours for 2010 were Rum & Raisin, Raspberry Cheesecake and Coconut. The introduction was supported with a £3m marketing campaign including television advertising.

Cornetto

For the 2009 season, a new premium chocolate wafer cone product — Cornetto Love Chocolate — was introduced.

Cornetto Enigma was introduced in 2010 in Vanilla & Chocolate (with a core of chocolate sauce and almond pieces running through vanilla ice cream) and Vanilla & Strawberry (with dark chocolate and raspberry sauce in the centre).

Magnum

In 2009, Magnum Temptations Chocolate was introduced. The hand-held ice cream was sold in its own box and combined chocolate, caramel and almonds as a ‘supremely indulgent’ addition to the range.

For 2010, Magnum Gold was the major introduction for the brand. The product comprises a vanilla ice cream stick with a swirl of caramel, covered in gold-dipped milk chocolate, available in impulse format or as a multipack of three. The Magnum Minis range was also extended with Magnum Mini Mint.



Wall’s Ice Cream

New ice creams in 2009 included Solero Berry and a Lemon Age Lolly tying in with the new Ice Age 3 film release.

MARKETING ACTIVITY

Table 5.1 outlines spending levels among various brands in 2009. The greatest spender overall was Unilever with its portfolio of products under the Ben & Jerry’s and Wall’s umbrellas.

Table 5.1: Main Media Advertising Expenditure on Selected Ice Cream and Frozen Desserts Brands (£000),

Year Ending December 2009

Expenditure (£000)

Brand

General Mills

Häagen-Dazs — ice cream 943

Häagen-Dazs — ice cream smoothie 687

Mars

Mars — ice cream bar 311

Snickers — ice cream 228

Mars — ice cream range 222

R&R Ice Cream

Kelly’s — clotted cream ice cream 1,866

Fab — ice lolly 291

Nestlé — ice cream 113

Unilever

Wall’s — Carte D’Or Caramel Cinnamon 1,925

Wall’s — Magnum Boxed Temptation range 1,790

Wall’s — Magnum ice cream 1,783

Ben & Jerry’s — Chocolate Macadamia 1,606

Wall’s — Magnum Mini 1,501

Wall’s — Vienetta ice cream 1,172

Table continues...



Examples of marketing activity in 2009/2010 are outlined below.

Fredericks Dairies

In March 2009, Cadbury secured the rights to sell all confectionery and packaged ice cream at the London 2012 Olympics.

From June 2009, Fredericks ran a national public relations (PR) campaign with the strapline ‘Raise a Million Smiles’ with Cadbury and Del Monte ice cream brands. The promotion featured a number of ice cream events, as well as a marketing campaign including press, television and radio activity.

General Mills

In 2009, Häagen-Dazs was the official ice cream supplier for Wimbledon.

From October 2009, new advertising was introduced for the Häagen-Dazs range. The theme of ‘Melt Together’ was initially used in a television commercial showing a couple watching the ballet and enjoying a tub of Häagen-Dazs.

Mars

In 2009, the full Mars portfolio gained from a ‘Bounce into a summer of British Sport’ campaign. As part of the strategy, Mars partnered with four sporting personalities — Pat Cash, Darren Gough, John Barnes and Austin Healey — who featured in marketing and promotional activity. Television advertising was carried out together with an ongoing partnership with The Sun newspaper and Talksport radio. Mars also gave away 200,000 balls.

...table continued

Expenditure (£000)

Brand

Unilever (cont.)

Ben & Jerry’s — ice cream range 859

Wall’s — Carte D’Or ice cream 650

Wall’s — Carte D’Or Vanilla 581

Wall’s — Carte D’Or Chocolate Inspiration 253

Wall’s — Milk Time product range 240

Wall’s — Carte D’Or Strawberry Yoghurt 228

Source: Nielsen Media Research

Table 5.1: Main Media Advertising Expenditure on Selected Ice Cream and Frozen Desserts Brands (£000),

Year Ending December 2009



R&R Ice Cream

Fab

In 2009, the Fab ice lollies brand ran its successful Design a Fab Den campaign for the third consecutive year. The on-pack competition was backed with a roadshow and national print campaign asking children to design the den of their dreams.

Kelly’s

Kelly’s of Cornwall ice cream boosted its promotional activity in 2010 with a £2.5m campaign focusing on provenance. Activity included television, press and sampling, starting from March.

The brand also ran a £2m promotional campaign in 2009 using the strapline ‘Simple Pleasure’, which included television advertising.

Unilever

Ben & Jerry’s

From April 2009, the Ben & Jerry’s brand ran a global Do the World A Flavour competition, offering entrants the chance to create the brand’s first global Fairtrade flavour.

In summer 2009, Ben & Jerry’s launched a new ‘app’, allowing users to send messages via Facebook and Twitter, upside down. The ‘app’ was available on the brand’s Flipped Out Facebook page, tying with the US launch of Ben & Jerry’s Flipped Out Sundaes.

Carte D’Or

In 2009, the new Carte D’Or flavour of the year — Caramel Cinnamon Waffle — was backed with new television advertising from mid-May until mid-August.

Magnum

In March 2009, Unilever introduced the Magnum Pleasure Card competition, offering consumers the chance to win a pre-paid MasterCard worth between £10 and £1,000. By June 2009, Unilever stated that it had been so inundated with responses that it had been unable to produce enough prize cards quickly enough, but worked to rectify the problem.

In 2010, the Magnum Classic and White variants were backed with a Crack the Code on-pack text-to-win promotion. The brand also signed actor Benicio del Toro as the face of its new Gold ice cream, which was launched in February with a £3m marketing communication plan including television advertising.


Ice Creams & Frozen Desserts Strengths, Weaknesses, Opportunities and Threats

6. Strengths, Weaknesses, Opportunities and Threats

STRENGTHS

• The ice cream and frozen desserts market has developed a range of products targeting price points and qualities, from everyday treat to premium indulgence.

• Ice cream in particular has a high level of consumer penetration.

• Strong brands are a feature of the market; heavy advertising and promotion benefit generic sales.

• Cross branding from other sectors such as confectionery can have a halo effect on ice cream and frozen desserts promotion.

• Despite the large number of products, the market is still receptive to new items, suggesting that some segments are still in a growth phase.

• Products have been versatile enough to tailor for changing eating demands such as solo eating and snacking.

• Similarly to other sweet foods, ice cream and frozen desserts are regarded as low-cost indulgences; therefore, sales have held up well despite the recession.

• The UK market is largely self-sufficient, which means that suppliers can react quickly to changing conditions if necessary.

WEAKNESSES

• Strong branding is needed to encourage impulse sales, which requires a heavy financial investment.

• Ice cream and frozen desserts suffer from a negative health profile and this has deterred some consumers and caused others to cut back.

• The fragmented nature of the market means that communication between manufacturer and retailer is complex.

• As part of the food sector, ice cream and frozen desserts supply is subject to stringent legislation.

• The strength of existing brands can make the launch of new products an expensive and risky proposition.

• Sales of some products are seasonally biased, such as large gateaux and desserts at Christmas and impulse ice cream products geared towards summer, which means that the market can be inconsistent.


Ice Creams & Frozen Desserts Strengths, Weaknesses, Opportunities and Threats

OPPORTUNITIES

• Limited-edition activity and seasonal products offer wide scope for timed product launches.

• Established products can be revived with new sizes, formats, packaging and promotional spends.

• New permanent variants offer the chance for low-risk brand building.

• Healthy eating products are yet to be fully exploited and show strong potential, including no- and reduced-sugar and well-being ranges.

• The changing demographic profile of the UK population will encourage new product types.

• Further licensing and cross branding from other sectors are yet to be explored.

THREATS

• The high level of investment needed to launch national brands deters product innovation.

• Health lobbies encourage consumers to reduce consumption of high-fat, high-calorie products.

• The weather can impact negatively as well as positively on sales.

• The strength of the multiple grocers and retailer own brands can threaten established brands and dampen innovation.

• The ageing nature of the population could have a negative impact on sales as older groups tend to be lighter consumers.


Ice Creams & Frozen Desserts Buying Behaviour

7. Buying Behaviour

CONSUMER PENETRATION

Between the 12-month periods ending March 2008 and September 2009, penetration levels for ice cream and frozen dessert products rose across all categories. This ties with a more successful start to the 2009 ice cream season, which established buying behaviour early in the year. In addition, the move to promote and launch more products all year round may also be contributing to less dependency on hot summers.

Frozen cakes gained a slight uplift in penetration in 2009. Again, suppliers have been innovating to offer frozen desserts in a wider range of formats for differing occasions, including individual servings.

By Sex

As seen across the food market as a whole, women show a higher rate of penetration than men in the ice cream and frozen desserts category. Women continue to take the lead as the main shopper in mixed households; as a result, they are more likely to purchase in almost every category.

The gap in penetration between the sexes for ice cream is narrower than that for frozen desserts. Ice cream is more likely to be an impulse purchase, while frozen desserts tend to be bought for planned or standby future eating occasions.

In both categories, promotion tends to target women or families with children rather than men.

Table 7.1: Penetration of Ice Cream and Frozen Desserts in the Last 12 Months (% of adults), 2006, 2008 and 2009

2006 2008 2009

Ice cream in tubs and blocks 79.1 77.3 79.1

Ice cream in bars, cones, tubs and sticks 59.8 57.2 64.2

Frozen cakes and pastries 50.1 40.0 42.1

Note: data cover the 12 months ending March 2006 and March 2008, and the 12 months ending September 2009.

Source: Target Group Index (TGI) © Kantar Media, 2006, 2008 and Quarter 1 (October 2008-September 2009) 2010



By Age

The three categories of ice cream products and frozen desserts tend to show slightly different trends in terms of penetration among the age groups. However, it is clear that the under-25s are key buyers across this market overall.

There is a relatively narrow range of penetration levels in terms of age for ice cream in tubs and blocks. Interestingly, while it may be anticipated that family-aged households would take the lead in these kind of sharing products, it is actually those at either extreme of the age range who are the main consumers. It may well be the case that family household demand is diluted by a tendency to buy across a wider range of dessert options or by opting for homemade products as they are catering for larger numbers.

Ice cream in bars, cones, tubs and sticks find their major purchasers among the 25 to 34 year-old age group. This will include chocolate snack products and individual items which can be easily used for adult or child snacking or eating.

Frozen cakes show a clear bias towards higher penetration among younger households. The relative cheapness and convenience of frozen cakes when compared to ambient, fresh or even homemade products will be a factor. In addition, the development of single-serve products will also have boosted penetration levels across some groups.

Table 7.2: Penetration of Ice Cream and Frozen Desserts in the Last 12 Months by Sex (% of adults), 2009

Ice Cream inIce Cream in Bars, Cones, Frozen Cakes

Tub and Blocks Tubs and Sticks and Pastries

All adults 79.1 64.2 42.1

Sex

Male 74.6 60.9 36.8

Female 81.0 67.3 47.1

Source: Target Group Index (TGI) © Kantar Media, Quarter 1 (October 2008-September 2009) 2010



By Social Grade

In terms of social grade there are few clear trends, with the difference in levels of penetration relatively narrow. This reflects the diversity in the market, where products are available to suit all household budgets.

Table 7.3: Penetration of Ice Cream and Frozen Desserts in the Last 12 Months by Age (% of adults), 2009



15-19 †83.6 64.7 50.3

20-24 - 66.4 54.1

25-34 72.6 67.0 50.o

35-44 74.0 65.3 44.5

45-54 80.5 64.4 42.4

55-64 82.0 61.1 36.1

65+ 83.1 61.8 29.4

† — refers to the 15 to 24 year-old age group


Table 7.4: Penetration of Ice Cream and Frozen Desserts in the Last 12 Months by Social Grade (% of adults), 2009



A 78.5 63.9 32.3

B 82.9 64.0 40.0

C1 75.7 64.5 42.7

C2 82.6 65.7 43.8

D 77.9 63.6 44.4

E 75.1 60.9 42.0



Ice Creams & Frozen Desserts Current Issues

8. Current Issues

BRAND ACTIVITY

Birds Eye

In 2009, Birds Eye announced the return of its Arctic Roll product, backed with a £3m multimedia promotional campaign.

Farmhouse Fare

Farmhouse Fare, the chilled pudding supplier, launched its first frozen desserts in November 2009. Luxury Sticky Toffee and luxury Sticky Chocolate puddings were initially introduced through Waitrose.

Good Feeling Solutions

In November 2009, Good Feeling Solutions ice cream was launched in Mint Neapolitan and Banoffee Neapolitan 3-litre (l) family tubs. The range was introduced by Mike Lewis, former ice cream buyer to Morrisons.

Graham’s Dairies

Graham’s The Family Dairy, a Scotland-based group, launched into the ice cream market in 2009. The initial line-up comprised a 500-milliletre (ml) vanilla-flavoured luxury organic ice cream and a 500ml Graham’s Gold Jersey cream variant.

Marks & Spencer

From the start of 2010, Marks & Spencer began to label its dairy products, including ice cream, with clear country-of-origin labelling. The information indicates where the milk is sourced from and where the product is made.

Waitrose

In summer 2009, Waitrose became the first of the multiples to convert its core own-label dairy products to 100% British sources. From the beginning of September, all of the group’s own-label dairy ice cream, milk, cream, yoghurt, butter and Cheddar were sourced entirely from British dairy farms. Only products with specific product origins continue to be sourced from outside Britain.


Ice Creams & Frozen Desserts Current Issues

COMPANY ACTIVITY

Heinz Sell Off

In November 2009, Heinz announced that it had sold its private-label frozen desserts business to a new company, PoleStar Foods, for an undisclosed sum. The sale included the American Dream and Devonshire desserts brands, as well as the WeightWatchers desserts range made under licence from Heinz.

Greencore Exit

At the beginning of 2009, Greencore announced that it was to close its frozen desserts factory in West Yorkshire. The factory-manufactured own-label products were to be discontinued, as was the Pudz frozen desserts brand. Desserts supplied to foodservice were to be manufactured at the company’s other frozen desserts factory in Taunton, Somerset.

FSA Consultation on Saturate Fat and Calories

In July 2009, the Food Safety Authority (FSA) launched a consultation proposing voluntary action to reduce saturated fat and calories in chocolate confectionery, biscuits, cakes, pastries, buns and soft drinks with added sugar. The 10% cut in products, when compared with 2008 levels, was proposed to be met by the end of 2010. For non-plain biscuits, the recommended cut is lower, at 5%, to allow for the difficulty in reducing levels in some components.

In December 2009, the FSA’s second raft of proposals regarding saturated-fat levels were put out to consultation. The proposed voluntary changes included reducing portion sizes on snacks, expanding the definitions of ice cream and Cheddar to include lower-fat products, and reformulating some meat products. The Authority had calculated the minimum cost for reformulating products at between £1,000 and £3,000.

The consultation closed on 9th March 2010 with the aim of reporting results within a 3-month period.

Within the sector, there is the possibility of a reclassification of ice cream in terms of ingredients. The European ice cream association (Euroglaces) has a Code of Practice for edible ices, which requires ice cream to contain fat (from eggs, dairy or vegetables) but has no minimum fat or protein level. According to the FSA, lower-fat products are currently sold using the term iced desserts, which may be misleading to consumers; aligning with Euroglaces’ position may offer greater flexibility.


Ice Creams & Frozen Desserts The Global Market

9. The Global Market

PRODUCT DEVELOPMENT

Ambient Ice Cream

In August 2009, Unilever revealed that it was developing an ambient ice cream in a bid to reduce greenhouse-gas emissions. The product, which is being designed with Cambridge University, will be sold at room temperatures then frozen at home, thus saving the energy normally used to store, freeze and transport ice cream.

‘Homemade’ Ice Cream

In March 2010, the French brand Alsa launched ‘homemade’ fruit-flavoured ice creams and yoghurts. The company supplies a sugar and gelling agent based preparation for the ‘Ma Glace Maison’. A 250-gram (g) sachet is mixed with 500g of fruit, then placed in a freezer for 7 hours to make ice cream without the need for an ice cream or sorbet maker.

GLOBAL MARKETPLACE

Fonterra (US)

In June 2009, the Australian Competition and Consumer Commission gave the go-ahead for Nestlé’s proposed acquisition of the Peters ice cream brand in Western Australia and the national ice cream brand Connoisseur from Fonterra. The company planned to sell the remainder of its Australian ice cream interests to Bulla, including the licence to manufacture and market Cadbury-branded ice cream in the country.

Humboldt (US)

In summer 2009, Foster Dairy Farms gained approval to acquire certain assets of the bankrupt US ice cream maker Humboldt Creamery. Foster took control of a processing plant and a frozen distribution centre in California.

Tine (Sweden)

In February 2010, the Norwegian dairy company Tine announced plans to sell its Swedish ice cream division Diplom-Is. The business was bought by Swedish businessman Anders Muntzing.


Ice Creams & Frozen Desserts The Global Market

Unilever

In February 2009, Unilever announced plans to launch an ice cream business in Romania, marketing produce under the Algida name used in Italy. The company also agreed to acquire Nopoca, a Romanian ice cream brand.

The following month, in the US, Unilever announced the launch of a range of super-premium ice cream in partnership with Starbucks. The four-strong range was based on the coffee group’s drinks and included Caramel Macchiato and Java Chip Frappuccino. The two companies signed a deal to produce and sell the ice cream in the US and Canada in September 2008.


Ice Creams & Frozen Desserts Forecasts

10. Forecasts

INTRODUCTION

The Economy

Gross Domestic Product

Economic growth is forecast to rise at a positive, but slow, rate to 2013, before dropping by 0.2 percentage points in 2014. While this should offer suppliers a positive investment background, the limited level of growth means that returns from investment may also be limited.

Within the ice cream and frozen desserts market, the high level of branding means that new product development (NPD) is ongoing. High-profile product launches and brand investment retains consumer interest, not only in individual items, but also in the category as a whole.

Inflation

While overall inflation is due to hover around the 3% mark in the short to medium term, the impact on various sectors will differ. Price hikes anticipated in essential categories such as energy and transport will hit corporate finances, while increasing food and energy costs will also lead to a squeeze on consumer spending.

Within the food market, the major multiples have already tightened their focus on price in a bid to maintain market share. Wrapped impulse ice creams tend to have a lesser focus on price. However, suppliers will be reluctant to raise price points in isolation.

Table 10.1: Forecast UK Growth in Gross Domestic Product in Real Terms (%), 2010-2014

2010 2011 2012 2013 2014

Gross domestic product growth (%) 1.1 2.1 2.4 2.7 2.5

Percentage point change

year-on-year - 1.0 0.3 0.3 -0.2

Source: Forecasts for the UK Economy, February 2010, Treasury Independent Average © Crown copyright



Demographics

The UK population profile is changing, with the number of under-14s and over-45s forecast to rise. The most significant growth overall to 2014 will be in the 25 to 34 and over-65 age groups.

Younger households are key buyers in this sector and the rise in the number of 25 to 34 year-olds is a positive indicator. Growth is also forecast among the oldest categories, which are most likely to be interested in healthy eating aspects. This will give suppliers an incentive to look at sugar and fat levels, as well as ingredients with positive health attributes.

Table 10.2: Forecast UK Rate of Inflation (%), 2010-2014

2010 2011 2012 2013 2014

Inflation (%) 3.2 2.6 2.8 3.2 2.9

Percentage point change

year-on-year 3.7 -0.6 0.2 0.4 -0.3

Note: inflation is at retail price index (RPI).

Source: Forecasts for the UK Economy, February 2010, Treasury Independent Average © Crown copyright

Table 10.3: Projected UK Population (000), 2006, 2008, 2010, 2012 and 2014

% Change2006-

2006 2008 2010 2012 2014 2014

0-4 3,496 3,688 3,836 3,931 3,977 13.8

5-9 3,490 3,394 3,444 3,619 3,781 8.3

10-14 3,751 3,657 3,560 3,432 3,412 -9.0

0-14 10,737 10,739 10,840 10,982 11,170 4.0

15-24 8,020 8,218 8,223 8,149 7,981 -0.5

25-34 7,896 7,934 8,242 8,651 9,042 14.5

Table continues...



FORECASTS 2010 TO 2014

Key Note anticipates that the ice cream and frozen desserts market will show small but positive rises in sales to 2014. To some extent, this will be driven by inflationary influences as input and other costs rises feed through to the retail market. However, there will also be a rise in sales of added-value products as consumers begin to trade up more as the recession lifts.

...table continued% Change

2006-2006 2008 2010 2012 2014 2014

35-44 9,262 9,162 8,865 8,491 8,208 -11.4

45-54 7,834 8,155 8,533 8,855 9,039 15.4

55-64 7,150 7,274 7,315 7,233 7,239 1.2

65+ 9,688 9,929 10,292 10,848 11,413 17.8

Total 60,587 61,411 62,310 63,209 64,092 5.8

Source: 2006-Based National Population Projections, Government Actuary’s Department © Crown copyright/Key Note

Table 10.3: Projected UK Population (000), 2006, 2008, 2010, 2012 and 2014

Table 10.4: The UK Ice Cream and Frozen Desserts Market by Sector by Value at Current Prices (£m at rsp), 2010-2014

2010 2011 2012 2013 2014

Ice cream 905 935 960 985 1,013

Frozen desserts 283 289 293 296 299

Total 1,188 1,224 1,253 1,281 1,312

% change year-on-year 2.7 3.0 2.4 2.2 2.4


Source: Key Note



MARKET GROWTH

Figure 10.1 illustrates growth in the UK market for ice cream and frozen desserts between 2005 and 2014, over which period the market value is expected to increase in retail value by 26.4%, from just under £1.04bn to slightly more than £1.31bn.

FUTURE TRENDS

Loyalty Versus Cost

Suppliers are keen to switch the focus away from price and back towards product quality and branding, which will allow for a lifting of margins and a rise in profitability, as well as potential investment in the sector. Brands such as Häagen-Dazs have already started to invest to develop consumer loyalty, driven by perceptions of a better-quality product. Unilever may have greater financial muscle to exert in terms of pricing. However, this is a self-limiting strategy and the focus on other aspects will also take priority to allow the longer term success of products and brands.

Figure 10.1: Growth in the Total UK Ice Cream and Frozen Desserts Market by Sector by Value at Current Prices

(£m at rsp), 2005-2014


Source: Key Note

0

200

400

600

800

1,000

1,200

1,400

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Ice cream Frozen desserts



However, in early 2010 the Co-op was already finding that suppliers were offering half-price deals for summer 2010, with Unilever being the driving force behind this and other manufacturers following suit. According to the retailer, this activity is now an established part of the ice cream market and is necessary to retain market share.

The weather may well be the deciding factor. Rising demand for ice cream in the peak summer season may encourage consumers to look at factors outside of price, while a growth in eating occasions will also allow for the targeting of different needs across the market.

Ethical Ice Cream

Product development will add value to the market. With the Ben & Jerry’s brand taking a lead in establishing a major label as fully Fairtrade, other non-price differentials are becoming more significant. Within the confectionery market Cadbury Dairy Milk and KitKat are now Fairtrade certified. Green & Black’s has also announced that it will be certifying its full range. Owing to the heavy cross-branding between confectionery and ice cream, there are likely to be further developments in this category.

Healthy Eating

Healthy eating is a factor in new product development (NPD) across the whole food market. Although ice cream and frozen desserts may be perceived as permissible treats, access to better-for-you options may encourage the frequency of purchase and consumption. The possibilities for product development are likely to expand if the definition of what constitutes ice cream is changed to allow differing levels and types of fat.

Organic products have tended to take a back seat with the recession impacting negatively on sales in many food categories. However, with an upturn in the food market as a whole, there will be a greater interest in areas such as product qualities and ingredient sourcing, which could encourage growth in organic brands and products.

The rise in domestic tourism resulting from a cutback in overseas travel may also prove a boost to smaller local and regional ice cream brands.

Frozen Food Developments

The frozen foods category gained from the recession as consumers switched away from chilled and fresh products to cheaper frozen variants, which boosted sales in frozen desserts. In the short term, suppliers will be able to capitalise on interest in the sector. However, the lack of strong branding may prove problematic in the longer term, as consumers turn back toward other formats.



The frozen desserts category is likely to benefit from the entry of the high-profile brand Carte D’Or. The promotional activity surrounding the launch of the Unilever label into frozen desserts may have a halo effect in the wider category. Farmhouse Fare, a successful chilled desserts brand, has also entered the frozen fixture and this too may stimulate interest in frozen puddings and encourage more active shopping in the frozen department on the part of consumers.


Ice Creams & Frozen Desserts Company Profiles

11. Company Profiles

INTRODUCTION

The following section contains financial profiles of some of the principal companies identified as operating within the market sector discussed in this report. The financial results of some of the important names within the sector may not be reported if:

• their principal activities are so varied that their results are not considered applicable to the survey

• they are no longer trading as separate companies

• their financial data are very out of date.

DEFINITIONS

A company which has a ‘Y’ consolidated value has filed consolidated accounts for the relevant year.

† — denotes that the growth rate calculation is invalid, because the figures either move from positive to negative or from negative to positive.

Turnover (Sales)

This includes all income derived from the principal activities of the firm, net of VAT. It encompasses UK sales, exports and overseas and intercompany sales.

Pre-Tax Profit

The net trading profit figure after deduction of all operating expenses, including depreciation and finance charges but before deduction of tax, dividends, subventions or group relief, and other appropriations. Where applicable, it will include the share of profits and losses of associated companies. Items described by the company as exceptional are included; extraordinary items are excluded.

Profit Margin

Pre-tax profits expressed as a percentage of sales.

Average Remuneration

Total employee remuneration divided by the number of employees.

Sales per Employee

Sales divided by the number of employees.

FURTHER INFORMATION

For more detailed financial information telephone ICC Client Services on: 020-8481 8855



FREDERICKS DAIRIES LTD

Registered Office Prospect PlaceEast PimboSkelmersdaleLancashire, WN8 9QD Telephone: 01695-725 451Fax: 01695-713 901

Company Registration Number 01695845Date of Incorporation 01/02/83Holding Company Fredericks Holdings LtdUltimate Holding Company Fredericks Holdings Ltd

Previous Name(s) and Date(s) of Change

None

Principal Activities

The manufacture of ice cream and dairy products.

SIC Code

15520, Manufacture of ice cream.

Structure

Frederick’s Dairies supply the ice cream market with a number of products, including the Cadbury brands under licence.

Brand Information

Brands supplied under licence by Fredericks Dairies include Cadbury, Del Monte, Rodda’s and Lyles Golden Syrup.

Recent Developments

In early 2010, Cadbury renewed its contract with Fredericks Dairies to continue its licensing partnership for a further 10-year period. The group also managed a £9m investment to increase distribution and capacity, as well as to double the impulse sales team and marketing budget for the year.

Fredericks also agreed new licensing deals with Vimto and Tangerine Confectionery, which led to the launch of Vimto and Barretts Refreshers ice lollies in 2010.

Under the Cadbury brand, new products for 2009 included Dairy Milk Fruit & Nut stick in the impulse range. A limited-edition 1-litre (l) Cadbury Crème Egg tub ice cream was also introduced in time for Easter.



FINANCIAL PROFILE

Year End 31/08/09 31/08/08 28/02/07 28/02/06Weeks 52 79 52 52Consolidated N N N N

Sales

Sales (£000) 38,574 60,890 41,429 32,367% change year-on-year -36.65 46.97 28.00 -Exports (£000) 1,047 1,591 386 46Exports/Sales (%) 2.71 2.61 0.93 0.14

Profits

Pre-Tax Profit (£000) 2,662 -999 221 -458% change year-on-year † † † -Profit Margin (%) 6.90 -1.64 0.53 -1.42Operating Profit (£000) 2,924 -4 963 -117

Employees

Number of Employees 200 189 215 202Average Employee Remuneration (£) 30,170 34,033 30,270 29,198Sales per Employee (£) 192,870 212,061 192,693 160,233Profit per Employee (£) 13,310 -3,479 1,028 -2,267Capital Employed per Employee (£) 33,495 29,063 46,637 54,317

Balance Sheet/Ratios

Capital Employed (£000) 6,699 5,493 10,027 10,972Return on Capital (%) 39.74 -11.97 2.20 -4.17Net Worth (£000) 3,731 1,637 3,948 3,817Current Ratio 1.22 1.07 0.86 0.91Liquidity Ratio 0.97 0.79 0.44 0.46



GENERAL MILLS UK LTD

Registered Office Harman House1 George StreetUxbridgeMiddlesex, UB8 1QQ

Company Registration Number 04633664Date of Incorporation 10/01/03Holding Company General Mills Holding (UK) LtdUltimate Holding Company General Mills Inc (US)


General Mills UK 2002 Ltd (08/05/03)


The sale of ice cream, ambient packaged foods, pre-packed frozen and chilled pastry and dough products, canned vegetables, baking mix branded products and other foods.

SIC Codes

51330, Wholesale of dairy produce, eggs and edible oils and fats.51380, Wholesale of other food including fish, crustaceans and molluscs.

Structure

General Mills supplies pre-packed frozen pastry products and distributes and markets super-premium ice cream.

Brand Information

The company supplies the Häagen-Dazs luxury ice cream brand.

Recent Developments

At the beginning of 2009, Häagen-Dazs introduced a new range of ice cream smoothies. Mango & Apricot and Raspberry & Summer Berries ice cream smoothies were available in 500-milliletre (ml) packs; the products combined fruit sorbet and ice cream. At the end of the year, the new limited-edition flavour introduction was Mascarpone, Passion Fruit & Truffles.

In March 2010, Häagen-Dazs launched its new summer flavour: Chocolate, Pralines & Caramel. The Chocolate Choc Chip ice cream variant also gained from a new recipe.



FINANCIAL PROFILE


Sales

Sales (£000) 233,502 209,148 180,204 165,998% change year-on-year 11.64 16.06 8.56 -Exports (£000) - - - -Exports/Sales (%) - - - -

Profits

Pre-Tax Profit (£000) 3,672 -5,348 3,294 4,501% change year-on-year † † -26.82 -Profit Margin (%) 1.57 -2.56 1.83 2.71Operating Profit (£000) 2,568 2,547 1,551 4,028

Employees

Number of Employees 327 278 277 251Average Employee Remuneration (£) 38,330 42,248 37,256 40,092Sales per Employee (£) 714,073 752,331 650,556 661,347Profit per Employee (£) 11,229 -19,237 11,892 17,932Capital Employed per Employee (£) 114,798 124,863 152,520 167,622


Capital Employed (£000) 37,539 34,712 42,248 42,073Return on Capital (%) 9.78 -15.41 7.80 10.70Net Worth (£000) 34,476 29,771 39,729 38,602Current Ratio 1.64 1.58 1.52 1.84Liquidity Ratio 1.64 1.58 1.52 1.83



R&R ICE CREAM UK LTD

Registered Office Richmond HouseLeeming BarNorthallertonNorth Yorkshire, DL7 9ULTelephone: 01677-423 397 Fax: 01677-428 142

Company Registration Number 00901522Date of Incorporation 21/03/67Holding Company Richmond Foods LtdUltimate Holding Company OCM Luxembourg Ice Cream SCA

(Luxembourg)


Richmond Ice Cream Ltd (25/06/07) Richmond Frozen Confectionery Ltd (22/01/03) Treats Frozen Confectionery Ltd (29/06/98) Treats Ice Cream Ltd (01/01/97) Treat (Holdings) Ltd (06/02/89)


The manufacture and sale of lollipops, ice cream and frozen confectionery.

SIC Code

15520, Manufacture of ice cream.

Structure

R&R Ice Cream UK supplies a range of ice cream products.

Brand Information

Brands supplied include the Nestlé ice cream, Lyons Maid, Thorntons, Ribena and Treats names. The company also supplies the retailer own-label market.

Recent Developments

The Lyons Maid ice cream brand was relaunched in September 2008 and was extended in 2009 with the introduction of new products to the range.

Under the Nestlé brand, Aero Double Bubble was introduced in 2010, combining mint and chocolate ice creams with aerated pieces of chocolate. Nestlé planned to spend £7m on the Aero brand in 2010. Aero Bubbleball was introduced, together with Aero stick ice creams.

Two new stick ice creams were added to the Thorntons range in 2009 — White Delight and Mint Choc Truffle — while Tropical Twist frozen yoghurt joined the in-store scoop range.



FINANCIAL PROFILE


Sales

Sales (£000) 132,210 119,149 151,883 140,680% change year-on-year 10.96 -21.55 7.96 -Exports (£000) 4,016 5,579 4,324 3,225Exports/Sales (%) 3.04 4.68 2.85 2.29

Profits

Pre-Tax Profit (£000) 17,841 9,935 8,942 15,793% change year-on-year 79.58 11.10 -43.38 -Profit Margin (%) 13.49 8.34 5.89 11.23Operating Profit (£000) 17,571 10,121 10,361 17,605

Employees

Number of Employees 660 684 790 879Average Employee Remuneration (£) 20,997 20,525 20,030 19,428Sales per Employee (£) 200,318 174,194 153,806 157,026Profit per Employee (£) 27,032 14,525 9,055 17,628Capital Employed per Employee (£) 69,803 53,235 44,357 43,732


Capital Employed (£000) 46,070 36,413 35,042 38,440Return on Capital (%) 38.73 27.28 20.41 40.31Net Worth (£000) 29,748 15,639 16,798 15,378Current Ratio 0.63 0.60 0.65 0.65Liquidity Ratio 0.38 0.29 0.34 0.35



UNILEVER PLC

Registered Office Port SunlightWirralMerseyside, CH62 4ZDTelephone: 020-7822 5252Fax: 020-7822 5898

Company Registration Number 00041424Date of Incorporation 21/06/1894Holding Company NoneUltimate Holding Company None


None


A group engaged in the manufacture and supply of savoury dressings and spreads, personal care products, ice cream and tea-based beverages, and home care and cleaning products.

SIC Codes

24520, Manufacture of perfumes and toilet preparations.15870, Manufacture of condiments and seasonings.15430, Manufacture of margarine and similar edible fats.24512, Manufacture of cleaning and polishing preparations.15891, Manufacture of soups.15899, Manufacture of other food products not elsewhere classified.15520, Manufacture of ice cream.24511, Manufacture of soap and detergents.

Structure

Unilever Ice Cream and Frozen Food Ltd is the major manufacturer brand in the frozen food sector.

Brand Information

The company owns the Wall’s brand and the product range includes Carte d’Or, Magnum, Cornetto and Calippo. The company also owns the Ben & Jerry’s brand.

Recent Developments

In February 2010, Ben & Jerry’s announced that it planned to be a fully certified Fairtrade brand on a global scale by 2013. Within the UK, the brand will be fully Fairtrade by 2011. The roll-out began in March 2010 with 60% of the range certified by May. At the beginning of 2010, the brand was valued at £63m in UK sales.



FINANCIAL PROFILE

Year End 31/12/09 31/12/08 31/12/07 31/12/06Weeks 52 52 52 52Consolidated Y Y Y Y

Sales

Sales (€000) 39,823,000 40,523,000 40,187,000 39,642,000% change year-on-year -1.73 0.84 1.37 -Exports (€000) 39,823,000 40,523,000 40,187,000 -Exports/Sales (%) 100.00 100.00 100.00 -

Profits

Pre-Tax Profit (€000) 4,916,000 7,129,000 5,184,000 4,831,000% change year-on-year -31.04 37.52 7.31 -Profit Margin (%) 12.34 17.59 12.90 12.19Operating Profit (€000) 5,020,000 7,167,000 5,245,000 5,408,000

Employees

Number of Employees 168,000 174,000 175,000 189,000Average Employee Remuneration (€) 24,774 24,098 25,246 23,201Sales per Employee (€) 237,042 232,891 229,640 209,746Profit per Employee (€) 29,262 40,971 29,623 25,561Capital Employed per Employee (€) 151,292 128,402 135,674 122,688


Capital Employed (€000) 25,417,000 22,342,000 23,743,000 23,188,000Return on Capital (%) 19.34 31.91 21.83 20.83Net Worth (€000) -4,982,000 -6,143,000 -4,368,000 -5,976,000Current Ratio 0.93 0.81 0.73 0.68Liquidity Ratio 0.62 0.53 0.45 0.41



WRIGLEY CANDY UK

Registered Office Wrigley Candy UK LtdEstover RoadPlymouthDevon, PL6 7PR

Company Registration Number 00636458Date of Incorporation 03/09/59Holding Company NoneUltimate Holding Company Mars Inc (US)


Mars Sugar UK (23/02/09) Mars UK (02/10/08) Mars UK Ltd (19/09/08) Seira Ltd (18/10/82)


The manufacture and sale of food and food-related products.

SIC Codes

15841, Manufacture of cocoa and chocolate confectionery.51360, Wholesale of sugar and chocolate and sugar confectionery.

Structure

Mars is one of the UK’s top confectionery groups; the company also supplies other foods and pet foods.

Brand Information

Mars brands include Mars, Snickers, Bounty and Galaxy branded chocolate ice cream bars and sticks.

Recent Developments

In 2010, Mars looked to focus on a core range of nine products under six brands. The range was also poised to gain from the halo effect of activity carried for corresponding confectionery brands such as Mars, Snickers and Galaxy.

Mars reported that Galaxy multipacks increase in sales by 38% in 2009, owing to the introduction of Galaxy Caramel Craving packs. Galaxy Triple Chocolate was also introduced, comprising chocolate-coated ice cream swirled with chocolate sauce.



FINANCIAL PROFILE


Sales

Sales (£000) 1,205,868 1,544,240 1,466,980 1,493,879% change year-on-year -21.91 5.27 -1.80 -Exports (£000) - - - -Exports/Sales (%) - - - -

Profits

Pre-Tax Profit (£000) 204,426 329,640 240,414 170,972% change year-on-year -37.99 37.11 40.62 -Profit Margin (%) 16.95 21.35 16.39 11.44Operating Profit (£000) 200,351 236,362 123,727 118,878

Employees

Number of Employees 2,232 2,814 3,221 3,588Average Employee Remuneration (£) 48,886 51,474 48,826 45,283Sales per Employee (£) 540,263 548,770 455,442 416,354Profit per Employee (£) 91,589 117,143 74,640 47,651Capital Employed per Employee (£) 1,976 185,330 91,157 35,194


Capital Employed (£000) 4,411 521,520 293,618 126,276Return on Capital (%) 4,634.46 63.21 81.88 135.40Net Worth (£000) 4,411 492,498 221,591 55,601Current Ratio 1.08 0.51 0.40 0.40Liquidity Ratio 1.02 0.29 0.25 0.25


Ice Creams & Frozen Desserts Company Financials

12. Company Financials

The following companies, listed in alphabetical order, are taken from the ‘my ICC’ service.

ICC’s links with Companies House mean that when the latest accounts for a company are made available, they can be incorporated on our database and be ready for inclusion in Key Note Market Reports Plus. A short delay occurs at Companies House between receipt of documents and their public release. As this delay can be longer, the availability of accounts can sometimes be affected.

It should be noted that the financial results for certain companies are not restricted to sales of the products covered by this report.

Turnover Pre-Tax(£000) Profit (£000) Year End

Company

Almondy Ltd 1,881 5 31/12/09Aunt Bessie's Ltd 50,684 5,070 25/04/09Consort Frozen Foods Ltd 20,268 356 31/12/08Country Style Foods Ltd 78,180 3,406 30/04/09Dawn Foods Ltd 27,889 1,996 31/12/08Delice de France PLC 179,302 8,470 31/07/09Delifrance (UK) Ltd 45,222 3,248 31/12/08Fletchers Bakeries Ltd 82,916 -5,388 28/03/09Fredericks Dairies Ltd 38,574 2,662 31/08/09General Mills UK Ltd 233,502 3,672 30/04/09

Greencore Group PLC† 1,103,800 -406 25/09/09Harry Yearsley Ltd 141,497 3,445 28/03/09HJ Heinz Frozen & Chilled Foods Ltd 117,400 -20,500 29/04/09Hunt's Foodservice Ltd 35,095 -657 31/03/09Kitchen Range Foods Ltd 30,696 877 27/12/08Lantmannen Unibake UK Holdings Ltd 96 700 31/12/08Mackie's Ltd 11,303 806 31/05/09R&R Ice Cream UK Ltd 132,210 17,841 28/12/08Scholler Ice Cream Ltd 8,391 155 31/12/08

Unilever PLC† 39,823,000 4,916,000 31/12/09Yeo Valley Group Ltd 177,859 4,480 31/05/09

† — financial data expressed in terms of euros

Ice Creams & Frozen Desserts Further Sources


13. Further Sources

Associations

British Frozen Food FederationWarwick HouseUnit 7Long Bennington Business ParkMain RoadLong BenningtonNewark, NG23 5JRTelephone: 01400-283 090Fax: 01400-283 097http://www.bfff.co.uk

EuroglacesAvenue des Arts 431040 BrusselsBelgiumTelephone: 0032-2514 1111E-mail: [email protected]://www.euroglaces.eu

Ice Cream AllianceMelbourne CourtMillennium WayPride Park Derby Derbyshire, DE24 8HZTelephone: 01332-203 333Fax: 01332-203 420E-mail: [email protected] http://www.ice-cream.org

Publications

Convenience StoreWilliam Reed Business MediaBroadfield ParkCrawleyWest Sussex, RH11 9RTTelephone: 01293-613 400http://www.thegrocer.co.uk

Daily Post (Liverpool)Trinity Mirror North West & North Wales LimitedPO Box 48 Old Hall StreetLiverpool, L69 3EBTelephone: 01512-272 000http://www.liverpooldailypost.co.uk

The GrocerWilliam Reed Business MediaBroadfield ParkCrawleyWest Sussex, RH11 9RTTelephone: 01293-613 400http://www.thegrocer.co.uk



General Sources

ICC LtdField House 72 Oldfield Road Hampton Middlesex, TW12 2HQ Telephone: 020-8481 8855Fax: 020-8941 6014E-mail: [email protected]://www.icc.co.uk

ICC provides in-depth, business-critical information for risk and credit decision-making. A range of flexible online tools provide access to the most comprehensive content on all UK and Irish businesses.

ICC offers access to information through high-speed online delivery tools:

• my ICC• my ICC credit management• Plum.

The data include:

• access to over 370 million original document images

• information on individual directors, shareholders, stakeholders and consumers

• information on limited and non-limited companies

• analysed financial, risk and business information reports

• industry information for benchmarking.

Kantar MediaEaling Gateway26-30 Uxbridge RoadEalingLondon, W5 2BPTelephone: 020-8433 4000Fax: 020-8433 4001http://www.kantarmedia.com

Nielsen Media ResearchAtrium CourtThe RingBracknellBerkshire, RG12 1BZTelephone: 01344-469 100Fax: 01344-469 102E-mail: [email protected]://www.nielsenmedia.co.uk



Government Sources

Food Safety AuthorityAviation House125 KingswayLondon, WC2B 6NHTelephone: 020-7276 8000http://www.food.gov.uk

Government Actuary's DepartmentFinlaison House 15-17 Furnival StreetLondon, EC4A 1ABTelephone: 020-7211 2601E-mail: [email protected]://www.gad.gov.uk• 2006-Based National Population

Projections

HM Treasury1 Horse Guards Road London, SW1A 2HQ Telephone: 020-7270 4558 Fax: 020-7270 4861http://www.hm-treasury.gov.uk• Forecasts for the UK Economy —

Treasury Independent Average

National Statistics1 Drummond GateLondon, SW1V 2QQ Telephone: 020-7533 5888Fax: 01633-812 599http://www.statistics.gov.uk • Consumer Trends• Economic & Labour Market Review• Monthly Digest of Statistics• UK Business: Activity, Size

and Location

uktradeinfoHM Revenue & Customs3rd Floor CentralAlexander House21 Victoria AvenueSouthend on SeaEssex, SS99 1AATelephone: 01702-367 485http://www.uktradeinfo.com

Key Note Sources

Key Note Ltd5th FloorHarlequin House7 High StreetTeddingtonRichmond Upon Thames, TW11 8EETelephone: 0845-504 0452Fax: 0845-504 0453E-mail: [email protected]://www.keynote.co.uk

Key Note Market Reports• Breakfast Cereals • Catering Equipment • Cooking Sauces & Food Seasonings • Fish & Fish Products • Fruit & Vegetables • Meat & Meat Products • Milk & Dairy Products • Natural Products • Poultry • Soup Market£460 each

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Providing in-depth strategic analysis and including primary research, these premium reports examine the scope, dynamics and shape of key UK and European markets, with a particular focus on financial services, consumer and lifestyle sectors.

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Ice Creams & Frozen Desserts Understanding TGI Data

Understanding TGI Data

TGI Tables, produced by Kantar Media, are generally based on one of the following groups:

• Households — a private household consists of either one person living alone or a group of people, usually, but not always, members of one family, who live together and whose food and other household expenses are managed as one unit.

• Adults — any person aged 15 or over.

• Housewives — a member of a private household who is solely or mainly responsible for the household duties.

Number, Profile, Penetration

Tables used in Key Note reports may give figures for the Number, Profile, and/or Penetration. These terms are explained in the following Table.

TGI data used in Key Note reports are broken down by age, social grade and standard region.

.0

.0

Table Heading

Population Number (000) Profile (%) Penetration (%)

All housewives 20,371 13,535 100.0 66.4

Age

15-24

25-34

Social Grade

AB

C1

Region

Greater

London

Source: Target Group Index, © Kantar Media, 1995

1,045 7.7 0.03

2,697 19.9 12.1

61.5

71.9

2,557 10.4 55.2

The total number of adults, housewives, households, etc.

Across

The % of 15-24 year-olds, etc. who are users.

This is the projected number of people in each subgroup who use the product.

Down

The % of each subgroup who are users. Eachsubgroup should total 100% vertically.


Ice Creams & Frozen Desserts Understanding TGI Data

Social Grade

This is normally based on the occupation of the Head of the Household, or if the Head of the Household is retired, their former occupation. If this information is not available social grade is based on environmental factors such as type of dwelling, amenities in the home, presence of domestic help etc.

Social grade is assessed by the interviewer when collecting the information and is, therefore, based on information given personally and verbally by the respondent. Social grade is checked by Kantar Media’s coding and editing office.

The following table broadly defines the six social grades used. The relationship between social grade and net income of the Head of the Household is a complex one and readers should note that income is not determinant of social grade.

Standard Region

This is as defined by the Registrar-General.

Social Grade Social Status Head of Household’s OccupationA Upper middle class Higher managerial, administrative or professionalB Middle class Intermediate managerial, administrative or

professionalC1 Lower middle class Supervisory or clerical and junior managerial,

administrative or professionalC2 Skilled working

classSkilled manual workers

D Working class Semi and unskilled workersE Those at lowest

levels of subsistence (no other earner)

State pensioners or widows

Ice Creams & Frozen Desserts Key Note Research


Key Note Research

Key Note is a leading supplier of market information, publishing an extensive range of consumer, industrial, business-to-business and services titles. With over 25 years’ experience, Key Note represents clear, concise, quality market information.

For all reports, Key Note undertakes various types of research:

Online searching is carried out by product code or free search method, and covers the period from the last edition of the report to the current day.

The ‘my ICC’ service is used to select company information relevant to the particular report. The financial information extracted may then be backed up by further online searching on particular companies.

Trade sources, such as trade associations, trade journals and specific company contacts, are invaluable to the Key Note research process.

Secondary data are provided by Kantar Media (TGI) and Nielsen Media Research for consumer/demographic information and advertising expenditure respectively. In addition, various official publications published by National Statistics, etc. are used for essential background data and market trends.

Interviews are undertaken by Key Note for various reports, either face-to-face or by telephone. This provides qualitative data (‘industry comment’) to enhance the statistics in reports; questionnaires may also be used.

Field research is commissioned for various consumer reports and market reviews, and is carried out by NEMS Market Research.

Key Note estimates are derived from statistical analysis and trade research carried out by experienced research analysts. Up-to-date figures are inserted where possible, although there will be some instances where: a realistic estimate cannot be made; or external sources request that we do not update their figures.

Key Note Editorial, 2010

Ice Creams & Frozen Desserts The Key Note Range of Reports


The Key Note Range of ReportsKey Note publishes over 180 titles each year, across both the Key Note and MarketAssessment product ranges. The total range covers consumer, lifestyle, financialservices and industrial sectors.

Title Edition Published

Market Reports and Reports Plus

A

Access Control 10 2008

Accountancy 13 2009

Aerospace 12 2003

Agrochemicals & Fertilisers 3 2002

Air Freight 2 2005

Airlines 20 2009

Airports 14 2010

Animal Feedstuffs 11 2001

Arts & Media Sponsorship 3 2008

Automatic Vending 24 2010

Automotive Services 7 2010

Autoparts 19 2009

B

Baths & Sanitaryware 14 2009

Bearings 2 2007

Betting & Gaming 22 2009

Biscuits & Cakes 17 2010

Book Publishing 19 2007

Bookselling 16 2009

Bread & Bakery Products 25 2010

Breakfast Cereals 14 2009

Breweries & the Beer Market 27 2008

Bricks & Tiles 15 2008

Bridalwear 5 2010

Builders’ Merchants 16 2008

Building Contracting 10 2009

Building Materials 13 2008

Bus & Coach Operators 10 2010

Business Press 14 2009

C

Cable & Satellite TV 10 2004

Camping & Caravanning 13 2002

Canned Foods 17 2009

Carpets & Floorcoverings 16 2009

Catering Equipment 13 2010

Chemical Industry 13 2010

Childrenswear 8 2009

Chilled Foods 15 2009

China & Earthenware 27 2010

Cigarettes & Tobacco 23 2009

Cinemas & Theatres 9 2001

Closed-Circuit Television 11 2009

Clothing Manufacturing 15 2008

Clothing Retailing 7 2009

Commercial Radio 8 2004

Commercial Vehicles 15 2009

Computer Hardware 8 2010

Computer Services 8 2008

Computer Software 7 2008

Confectionery 28 2010

Consumer Internet Usage 4 2000

Consumer Magazines 16 2009

Contraception 4 2009

Contract Catering & Foodservice Management 21 2010

Contract Cleaning 21 2010

Cooking Sauces & Food Seasonings 4 2010

Corporate & Promotional Giftware 3 2008

Corporate Hospitality 6 2007

Cosmetics & Fragrances 23 2010

Cosmetic Surgery 8 2010

Courier & Express Services 15 2008

D

Dark Spirits & Liqueurs 3 2004

Debt Management (Commercial & Consumer) 5 2008

Defence Equipment 11 2010

Design Consultancies 3 2000

Digital Broadcasting 4 2009

Digital Communications 1 2009

Digital TV 2 2003

Direct Marketing 19 2009

Discount Retailing 7 2009

Disposable Paper Products 13 2009

Document Imaging Systems 1 2007

Domestic Heating 14 2009

Dry Cleaning & Laundry Services 5 2005




E

Electrical Contracting 9 2009

Electrical Wholesale 5 2009

Electricity Industry 6 2009

Electronic Component Distribution 12 2002

Electronic Component Manufacturing 11 2002

Electronic Games 4 2003

Equipment for the Disabled 5 2009

Equipment Leasing 12 2003

Estate Agents 17 2008

Ethnic Foods 15 2009

Exhibitions & Conferences 11 2009

F

Factoring & Invoice Discounting 2 2003

Fast Food & Home Delivery Outlets 23 2008

The Film Industry 4 2002

Finance Houses 11 2000

Fire Protection Equipment 8 2006

Fish & Fish Products 13 2008

Fitted Kitchens 7 2007

Football Clubs & Finance 4 2009

Footwear 16 2009

Franchising 12 2010

Free-To-Air TV 8 2004

Freight Forwarding 17 2009

Frozen Foods 24 2009

Fruit Juices & Health Drinks 13 2010

Fruit & Vegetables 21 2009

Further & Higher Education 6 2009

G

Garden Equipment 13 2009

Gas Industry 5 2009

Giftware 18 2009

Glassware 15 2009

Greetings Cards 25 2009


H

Hand Luggage & Leather Goods 15 2010

Health Clubs & Leisure Centres 9 2009

Health Foods 22 2003

Heating, Ventilating & Air Conditioning 9 2002

Home Furnishings 19 2009

Home Shopping 13 2009

Horticultural Retailing 17 2008

Hotels 24 2009

Housebuilding 18 2009

Household Appliances (Brown Goods) 11 2008

Household Appliances(White Goods) 16 2008

Household Detergents & Cleaners 16 2009

Household Furniture 18 2008

I

Ice Creams & Frozen Desserts 14 2010

Industrial Fasteners 8 2001

Industrial Pumps 5 2000

Industrial Valves 8 2001

Insurance Companies 12 2009

Internet Usage in Business 8 2005

IT Security 9 2009

IT Training 12 2009

J

Jewellery & Watches 25 2009

K

Kitchenware 7 2009

L

Laboratory Equipment 9 2008

Lighting Equipment 14 2002

Lingerie 9 2010

M

Management Consultants 10 2003

Market Forecasts 1 2005

Meat & Meat Products 20 2009

Medical Equipment 17 2009

Metal Recycling 5 2009

Milk & Dairy Products 23 2009

Mobile Phones 7 2010

Mobile Telecommunications 2 2007




N

Natural Products 2 2007

New Media Marketing 3 2002

Newspapers 17 2008

Non-Metal Recycling 2 2008

O

Office Furniture 21 2008

Offshore Oil & Gas Industry 5 2009

Ophthalmic Goods & Services 16 2008

OTC Pharmaceuticals 14 2010

Own Brands 12 2007

P

Packaging (Food & Drink) 6 2010

Packaging (Glass) 13 2008

Packaging (Metals & Aerosols) 12 2003

Packaging (Paper & Board) 15 2010

Packaging (Plastics) 15 2010

Paper & Board Manufacturing 14 2002

Personal Banking 11 2000

Photocopiers & Fax Machines 14 2005

Plant Hire 13 2007

Plastics Processing 10 2003

Poultry 3 2008

Power Tools 5 2007

Premium Lagers, Beers & Ciders 8 2009

Printing 15 2010

Private Healthcare 20 2009

Protective Clothing & Equipment 7 2009

Public Houses 26 2010

R

Rail Travel 7 2008

Ready Meals 11 2009

Recruitment Agencies (Permanent) 10 2010

Recruitment Agencies (Temporary & Contract) 10 2010

Renewable Energy 3 2009

Restaurants 24 2009

Retail Chemists & Drugstores 16 2010

Road Haulage 22 2009


S

Sauces & Spreads 11 2008

Shopfitting 14 2009

Short Break Holidays 4 2001

Slimming Market 8 2000

Small Domestic Electrical Appliances 11 2007

Snack Foods 20 2010

Soft Drinks (Carbonated & Concentrated) 17 2008

Soup Market 3 2009

Sports Clothing & Footwear 12 2009

Sports Equipment 15 2009

Sports Sponsorship 7 2009

Stationery (Personal & Office) 24 2008

T

Take Home Trade 17 2008

Telecommunications 21 2007

Timber & Joinery 19 2008

Toiletries 22 2009

Tourist Attractions 5 2001

Toys & Games 23 2009

Training 18 2009

Travel Agents & Overseas Tour Operators 22 2009

Tyre Industry 4 2008

V

Vehicle Security 8 2007

Videoconferencing 4 2007

Video & DVD Retail & Hire 8 2005

W

Wallcoverings & Ceramic Tiles 17 2006

Waste Management 9 2008

Water Industry 5 2010

Windows & Doors 19 2008

Wine 20 2009

White Spirits 1 2005

Market ReviewsCatering Market 21 2009

Clothing & Footwear Industry 12 2008

UK Computer Market 11 2004

Construction Industry 11 2009

Contracted-Out Services 3 2007

Defence Industry 7 2003

Distribution Industry 10 2009




DIY & Home Improvements Industry 11 2009

Drinks Market 19 2009

Energy Industry 8 2010

Film Market 2 2009

Food Industry 20 2010

Healthcare Market 10 2005

Insurance Industry 10 2009

The Legal Services Market 1 2005

Leisure & Recreation Market 15 2005

Leisure in the Home 2 2008

Leisure Outside the Home 2 2008

Local Government Services 3 2010

Mechanical Handling 1 2001

Motor Industry 12 2008

Music Industry 2 2010

Office Equipment Industry 9 2010

Packaging (Food & Drink) Industry 1 2003

Passenger Travel in the UK 5 2007

Pharmaceuticals Industry 6 2008

Process Plant Industry 1 2000

Publishing Industry 12 2008

Railway Industry 2 2006

Security Industry 13 2010

Sports Market 13 2010

Travel & Tourism Market 16 2009

UK Internet Market 1 2009

Market Assessment ReportsA

ABC1 Consumer 2008

Activity Holidays 2009

Advertising Agencies 2007

All-Inclusive Holidays 2000

Alternative Healthcare 2010

Audio-Visual Retailing 2000

B

Baby Foods 2006

Baby Products 2008

Baths and Showers 2000

Beds, Bedrooms and Upholstered Furniture 2000

Betting and Gaming 2002

Book Retailing on the Internet 2007

Bottled Water 2003

Bridalwear 2002

Business Postal Services 2008


B2B Marketing 2008

Business Travel Market 2008

C

Cable and Satellite Services 2002

Charity Funding 2005

Childcare 2008

Children’s Publishing 2008

Clothing Retailers 2000

Coffee & Sandwich Shops 2009

Commercial Dynamics in Financial Services 2005

Commercial Insurance for Small Businesses 2009

Condiments and Sauces 2008

Consumer Credit & Debt 2007

Contact Centres 2010

Contraception 2002

Cooking & Eating 2009

Cross-Border Shopping 2000

Cruise Market 2008

Customer Loyalty in Financial Services 2000

Customer Magazines & Contract Publishing 2009

Customer Relationship Management 2008

Customer Services inFinancial Organisations 2010

C2DE Consumer 2008

D

Diet Foods 2009

DINKY Market 2007

Direct Insurance 2010

Direct Mortgages 2008

Domestic Lighting andElectrical Products 2000

Domestic Telecommunications 2006

E

E-Commerce: The Internet Grocery Market 2009

E-Commerce: The Internet Leisure & Entertainment Market 2008

Electronic Banking 2008

EMU — The Impact on the UK Financial Services Industry 2003

E-Recruitment 2006

E-Shopping 2002

Estate Agents and Services 2010

Ethnic Foods 2002

European Electricity Industry 2007

European Gas Industry 2007




European Long-Term Insurance 2008

European Oil & Gas Industry 2007

European Renewable 2008

Energy Industry

European Short Breaks 2008

European Telecommunications 2002

European Tourist Attractions 2009

European Trends in Food Shopping 2009

European Water Industry 2007

Extended Financial Families 2005

F

Financial Services Marketing to ABs 2006

Financial Services Marketing to ABC1s 2000

Financial Services Marketing to BCs 2009

Financial Services Marketing to C1C2DEs 2006

Financial Services Marketing to DEs 2009

Financial Services Marketing to Over 60s 2004

Financial Services Marketing to the Affluent 2009

Financial Services Marketing to the Retired and Elderly 2007

Financial Services Marketing toStart-Up Businesses and theSelf-Employed 2003

Financial Services Organisations on the Internet 2009

The Fish Industry 2001

Forecourt Retailing 2010

Functional Foods 2008

Funding in Higher Education 2002

G

General Insurance 2010

Generation Y 2007

Global Waste Management 2007

Green and Ethical Consumer 2008

Grey Consumer 2009

H

Healthy Eating 2008

Holiday Purchasing Patterns 2009

Home Entertainment 2008

Hot Beverages 2009

I

In-Car Entertainment 2000

Independent Financial Advisers 2008

Individual Savings Accounts 2005

Insurance Prospects 2008

Internet Advertising 2009


Internet Service Providers 2005

Issues and Challenges in the UK Life Assurance Market 2002

Issues in Higher Education Funding 2006

IT Recruitment 2010

L

Lifestyle Magazines 2008

Low-Fat & Reduced-Sugar Foods 2008

The Luggage Market 2000

M

Marketing to Children 4-11 2003

Marketing in the Digital Age 2009

Medical & Health Insurance 2007

Men and Women’s Buying Habits 2008

Men’s Toiletries & Fragrances 2008

Millennium Youth 2002

Mobile Marketing 2009

Motor Finance 2008

N

The Newspaper Industry 2005

Non-Food Sales in Supermarkets 2008

Nutraceuticals 2008

O

Off-Trade Spirits 2004

Opticians & Optical Goods 2010

Organic Baby & Toddler Care 2007

Organic Food & Drink 2010

OTC Pharmaceuticals 2000

Over-40s Consumer 2005

Over-50s Consumer 2009

P

Pay TV 2004

Pension Extenders 2002

Pensions 2009

Personal Banking 2003

Personal Lines Insurance 2010

Personal Loans 2008

Pet Market 2009

Planning for Retirement 2008

Plastic Cards in Europe 2005

Plus-Size Fashion 2009

Private Sector Opportunities in Education 2001

Public Relations Industry 2007

Public Transport 2001





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Published by Key Note Ltd, 5th Floor, Harlequin House, 7 High Street, Teddington, Richmond Upon Thames, TW11 8EE Telephone: 0845-504 0452

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If you have any queries regarding the CTPS legislation you may find the following website useful: www.ico.gov.uk

R

The Railway Industry 2004

Ready Meals 2001

Recycling and the Environment 2000

Retail Credit 2000

Retail Development 2001

Rural Economy 2009

S

Savings & Investments 2007

Saving Trends in the Eurozone 2002

Singles Market 2009

Shopping Centres 2008

Short Breaks 2004

Slimming Market 2009

Small Businesses & Banks 2010

Small Office Home Office Consumer 2001

Small Office Home Office Products 2001

The Soup Market 2001

Sponsorship 2000

Supermarket Own Labels 2009

Supermarket Services 2007

Sweet & Salty Snacks 2009


T

Teenage Fashionwear 2008

Teenage & Pre-Teen Magazines 2009

Teleworking 2003

Trends in Food Shopping 2008

Trends in Leisure Activities 2007

Tweenagers 2005

U

Utilities 2010

V

Vegetarian Foods 2009

Vehicle Breakdown Services 2010

Vitamins, Minerals & Supplements 2009

W

White Goods 2000

Women Over 45 2007

Working Women 2009


Ice Creams & Frozen Desserts 2010

Documents

Transcript of Ice Creams & Frozen Desserts 2010