Ice Creams & Frozen Desserts 2010

Market Report Plus 2010
Fourteenth Edition, May 2010

Edited by Katie Hughes
ISBN 978-1-84729-630-6
Ice Creams & Frozen Desserts

Ice Creams & Frozen Desserts Foreword
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© Key Note Ltd 2010

Ice Creams & Frozen Desserts Contents
Contents
Executive Summary 1
1. Market Definition 2
REPORT COVERAGE .......................................................................................................................2

MARKET SECTORS ..........................................................................................................................2
Ice Cream...........................................................................................................................................2
Frozen Desserts .................................................................................................................................2
MARKET TRENDS............................................................................................................................2
Summer Performance.......................................................................................................................2
Staying In ..........................................................................................................................................3
Pricing Issues .....................................................................................................................................3
Frozen Food up in Recession............................................................................................................4
ECONOMIC TRENDS .......................................................................................................................4
Gross Domestic Product....................................................................................................................4
Table 1.1: UK Gross Domestic Product at Current
and Annual Chain-Linked Prices (£m), 2005-2009 .........................................................................5
Household Disposable Income.........................................................................................................5
Table 1.2: UK Household Disposable Income Per Capita (£), 2004-2008 ......................................6
Inflation.............................................................................................................................................6
Table 1.3: UK Rate of Inflation (%), 2005-2009 .............................................................................6
MARKET POSITION ........................................................................................................................7
The UK...............................................................................................................................................7
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 ..............................................................................................7
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 ..........................................................................................................8
Overseas ............................................................................................................................................8
2. Market Size 9
THE TOTAL MARKET......................................................................................................................9

Table 2.1: The UK Market for Ice Cream and Frozen Desserts
by Sector Value at Current Prices (£m at rsp), 2005-2009 .............................................................9
Figure 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................................................................................................................................10
Seasonality ......................................................................................................................................10
Other Market Drivers .....................................................................................................................10
BY MARKET SECTOR....................................................................................................................11
Ice Cream.........................................................................................................................................11
Table 2.2: The UK Ice Cream Sector by Subsector by Value
at Current Prices (£m at rsp and %), 2005-2009 ..........................................................................11
Take-Home Ice Cream ....................................................................................................................12
Table 2.3: The UK Take-Home Ice Cream Subsector by Value
Table 2.4: The UK Take-Home Ice Cream Subsector by Subsector Shares
by Value at Current Prices (£m at rsp and %), 2009 ....................................................................13
Multipacks ......................................................................................................................................13
Premium and Luxury Ice Cream ....................................................................................................13
Standard Ice Cream/Frozen Desserts ............................................................................................14
Wrapped Impulse Ice Cream ..........................................................................................................14
Table 2.5: The UK Wrapped Impulse Ice Cream Subsector
by Value at Current Prices (£m at rsp and %), 2005-2009 ...........................................................14
Table 2.6: The UK Wrapped Impulse Ice Cream Subsector by Subsector Shares
by Value at Current Prices (£m at rsp and %), 2009 ....................................................................15
Chocolate Snacks ...........................................................................................................................15
Children’s Products ........................................................................................................................16
Cones ..............................................................................................................................................16
Refreshment Products ...................................................................................................................16
Other (including individual tubs, etc.) .........................................................................................16
Frozen Desserts ...............................................................................................................................16
Table 2.7: The UK Frozen Desserts Sector by Value
OVERSEAS TRADE ........................................................................................................................18
Table 2.8: Overseas Trade in Ice Cream and Other Edible Ices (£000), 2007 and 2008 .............18
3. Industry Background 19
RECENT HISTORY..........................................................................................................................19
NUMBER OF COMPANIES ...........................................................................................................19
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 ..................................................................................................................20
EMPLOYMENT ..............................................................................................................................20
Table 3.2: Number of UK VAT- and/or PAYE-Based Enterprises Engaged
in the Manufacture of Ice Cream by Employment Sizeband
(number and %), 2009 ..................................................................................................................20
REGIONAL VARIATIONS IN THE MARKETPLACE ....................................................................21
RETAIL DISTRIBUTION .................................................................................................................21
Table 3.3: The UK Take-Home Ice Cream and Frozen Desserts Market
by Retail Outlet by Value (%), 2009 .............................................................................................22
HOW ROBUST IS THE MARKET? ................................................................................................22

LEGISLATION .................................................................................................................................22
Compositional Requirements.........................................................................................................23
TRADE ASSOCIATIONS ................................................................................................................24
British Frozen Food Federation .....................................................................................................24
Ice Cream Alliance ..........................................................................................................................24
4. Competitor Analysis 25
THE MARKETPLACE .....................................................................................................................25

MARKET LEADERS........................................................................................................................25
Fredericks Dairies Ltd .....................................................................................................................25
General Mills UK Ltd.......................................................................................................................26
R&R Ice Cream UK Ltd ....................................................................................................................26
Unilever PLC ....................................................................................................................................27
Wrigley Candy UK...........................................................................................................................28
Other Companies............................................................................................................................28
Almondy..........................................................................................................................................28
Country Style Foods........................................................................................................................28
Doddington Dairy...........................................................................................................................29
Loseley Dairy ...................................................................................................................................29
Mackies............................................................................................................................................29
Pioneering Foods ............................................................................................................................29
Tryton Foods ...................................................................................................................................29
Yeo Valley .......................................................................................................................................29
OUTSIDE SUPPLIERS .....................................................................................................................29
MARKETING ACTIVITY ................................................................................................................30
Main Media Advertising Expenditure ...........................................................................................30
Table 4.1: Main Media Advertising Expenditure on Ice Cream and Lollies
(£000), Years Ending December 2008 and 2009 ..........................................................................30
Exhibitions.......................................................................................................................................31
5. Brand Strategy 32
INTRODUCTION ............................................................................................................................32
COMPANY BRANDS .....................................................................................................................32
Beechdean.......................................................................................................................................32
Fredericks Dairies............................................................................................................................32
Barretts............................................................................................................................................32
Cadbury ...........................................................................................................................................32
Del Monte .......................................................................................................................................33
Vimto...............................................................................................................................................33
General Mills ...................................................................................................................................33
Icefresh Foods .................................................................................................................................33
Mackies............................................................................................................................................33
Mars.................................................................................................................................................33

R&R Ice Cream.................................................................................................................................34

Kelly’s ..............................................................................................................................................34
Lyons Maid ......................................................................................................................................34
Mivvi ................................................................................................................................................34
Nestlé...............................................................................................................................................34
Thorntons........................................................................................................................................34
Unilever ...........................................................................................................................................35
Ben & Jerry’s....................................................................................................................................35
Carte D’Or .......................................................................................................................................35
Cornetto ..........................................................................................................................................35
Magnum..........................................................................................................................................35
Wall’s Ice Cream..............................................................................................................................36
MARKETING ACTIVITY ................................................................................................................36
Table 5.1: Main Media Advertising Expenditure on Selected Ice Cream
and Frozen Desserts Brands (£000), Year Ending December 2009 .............................................36
Fredericks Dairies............................................................................................................................37
General Mills ...................................................................................................................................37
Mars.................................................................................................................................................37
R&R Ice Cream.................................................................................................................................38
Fab ...................................................................................................................................................38
Kelly’s ..............................................................................................................................................38
Unilever ...........................................................................................................................................38
Ben & Jerry’s....................................................................................................................................38
Carte D’Or .......................................................................................................................................38
Magnum..........................................................................................................................................38
6. Strengths, Weaknesses, Opportunities and Threats 39
STRENGTHS....................................................................................................................................39
WEAKNESSES ................................................................................................................................39
OPPORTUNITIES ............................................................................................................................40
THREATS .........................................................................................................................................40
7. Buying Behaviour 41
CONSUMER PENETRATION ........................................................................................................41

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

By Social Grade ...............................................................................................................................43

in the Last 12 Months by Social Grade (% of adults), 2009 ........................................................43
8. Current Issues 44
BRAND ACTIVITY..........................................................................................................................44
Birds Eye ..........................................................................................................................................44
Farmhouse Fare ..............................................................................................................................44
Good Feeling Solutions ..................................................................................................................44
Graham’s Dairies.............................................................................................................................44
Marks & Spencer .............................................................................................................................44
Waitrose ..........................................................................................................................................44
COMPANY ACTIVITY ...................................................................................................................45
Heinz Sell Off ..................................................................................................................................45
Greencore Exit ................................................................................................................................45
FSA Consultation on Saturate Fat and Calories ............................................................................45
9. The Global Market 46
PRODUCT DEVELOPMENT ..........................................................................................................46

Ambient Ice Cream .........................................................................................................................46
‘Homemade’ Ice Cream ..................................................................................................................46
GLOBAL MARKETPLACE .............................................................................................................46
Fonterra (US)...................................................................................................................................46
Humboldt (US) ................................................................................................................................46
Tine (Sweden) .................................................................................................................................46
Unilever ...........................................................................................................................................47
10. Forecasts 48
INTRODUCTION ............................................................................................................................48
The Economy...................................................................................................................................48
Gross Domestic Product..................................................................................................................48
Table 10.1: Forecast UK Growth in Gross Domestic Product in Real Terms (%), 2010-2014 .....48
Inflation...........................................................................................................................................48
Table 10.2: Forecast UK Rate of Inflation (%), 2010-2014 ..........................................................49
Demographics .................................................................................................................................49
Table 10.3: Projected UK Population (000), 2006, 2008, 2010, 2012 and 2014 ..........................49
FORECASTS 2010 TO 2014 ..........................................................................................................50
Table 10.4: The UK Ice Cream and Frozen Desserts Market
by Sector by Value at Current Prices (£m at rsp), 2010-2014 ......................................................50
MARKET GROWTH .......................................................................................................................51
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 ......................................................51

FUTURE TRENDS ...........................................................................................................................51

Loyalty Versus Cost .........................................................................................................................51
Ethical Ice Cream ............................................................................................................................52
Healthy Eating ................................................................................................................................52
Frozen Food Developments ...........................................................................................................52
11. Company Profiles 54
Fredericks Dairies Ltd .....................................................................................................................55

General Mills UK Ltd.......................................................................................................................57
R&R Ice Cream UK Ltd ....................................................................................................................59
Unilever PLC ....................................................................................................................................61
Wrigley Candy UK...........................................................................................................................63
12. Company Financials 65
13. Further Sources 66
Associations.....................................................................................................................................66
Publications.....................................................................................................................................66
General Sources ..............................................................................................................................67
Government Sources ......................................................................................................................68
Key Note Sources ............................................................................................................................68
Understanding TGI Data 71
Number, Profile, Penetration.........................................................................................................71

Social Grade ....................................................................................................................................72
Standard 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

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.
© Key Note Ltd 2010 1

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.
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)
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 1.2: 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)
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 1.3: 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 Sugar
and Sweet Products
Sugar and as a % of Total
Food 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

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
125
120
115
110
105
100
95
90
2005 2006 2007 2008 2009
Sugar and sweet products Food
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).

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
1,400
1,200
1,000
800
600
400
200
0
2005 2006 2007 2008 2009
Ice cream Frozen desserts
Source: Key Note

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.
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
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.

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.
Table 2.3: The UK Take-Home Ice Cream Subsector

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
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 2.4: 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
• 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.

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.

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.

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
• 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.

• 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.

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
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.

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.
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
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.

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.

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 of
Enterprises % 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
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.

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...


Engaged in the Manufacture of Ice Cream by Employment
...table continued
Number 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
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 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
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)

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
% Change
2008 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...

Table 5.1: Main Media Advertising Expenditure on Selected

Ice Cream and Frozen Desserts Brands (£000),
Year Ending December 2009
...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
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.

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.

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 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.


in the Last 12 Months by Sex (% of adults), 2009
Ice Cream in
Ice 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

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.


in the Last 12 Months by Age (% of adults), 2009
Ice Cream in
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

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.

in the Last 12 Months by Social Grade (% of adults), 2009
Ice Cream in
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.
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
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 10.2: 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
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 10.3: Projected UK Population (000),

2006, 2008, 2010, 2012 and 2014
% Change
2006-
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...

Table 10.3: Projected UK Population (000),

2006, 2008, 2010, 2012 and 2014
...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
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 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.
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
1,400
1,200
1,000
800
600
400
200
0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Ice cream Frozen desserts
Source: Key Note
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.

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 Place

East Pimbo
Skelmersdale
Lancashire, WN8 9QD
Telephone: 01695-725 451
Fax: 01695-713 901
Company Registration Number 01695845
Date of Incorporation 01/02/83
Holding Company Fredericks Holdings Ltd
Ultimate 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 28/02/06

Weeks 52 79 52 52
Consolidated 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 46
Exports/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 -1.42
Operating Profit (£000) 2,924 -4 963 -117
Employees
Number of Employees 200 189 215 202
Average Employee Remuneration (£) 30,170 34,033 30,270 29,198
Sales per Employee (£) 192,870 212,061 192,693 160,233
Profit per Employee (£) 13,310 -3,479 1,028 -2,267
Capital Employed per Employee (£) 33,495 29,063 46,637 54,317
Balance Sheet/Ratios
Capital Employed (£000) 6,699 5,493 10,027 10,972
Return on Capital (%) 39.74 -11.97 2.20 -4.17
Net Worth (£000) 3,731 1,637 3,948 3,817
Current Ratio 1.22 1.07 0.86 0.91
Liquidity Ratio 0.97 0.79 0.44 0.46

GENERAL MILLS UK LTD
Registered Office Harman House

1 George Street
Uxbridge
Middlesex, UB8 1QQ
Holding Company General Mills Holding (UK) Ltd
Ultimate 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
Year End 30/04/09 30/04/08 30/04/07 30/04/06

Weeks 52 52 52 52
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 2.71
Operating Profit (£000) 2,568 2,547 1,551 4,028
Employees
Profit per Employee (£) 11,229 -19,237 11,892 17,932
Return on Capital (%) 9.78 -15.41 7.80 10.70
Net Worth (£000) 34,476 29,771 39,729 38,602
Current Ratio 1.64 1.58 1.52 1.84

R&R ICE CREAM UK LTD
Registered Office Richmond House

Leeming Bar
Northallerton
North Yorkshire, DL7 9UL
Telephone: 01677-423 397
Fax: 01677-428 142
Holding Company Richmond Foods Ltd
Ultimate 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
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
Year End 28/12/08 30/12/07 31/12/06 02/10/05

Weeks 52 52 65 53
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 3,225
Exports/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 11.23
Employees
Profit per Employee (£) 27,032 14,525 9,055 17,628
Return on Capital (%) 38.73 27.28 20.41 40.31
Net Worth (£000) 29,748 15,639 16,798 15,378
Current Ratio 0.63 0.60 0.65 0.65

UNILEVER PLC
Registered Office Port Sunlight

Wirral
Merseyside, CH62 4ZD
Telephone: 020-7822 5252
Fax: 020-7822 5898
Holding Company None
Ultimate 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.
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 31/12/06

Weeks 52 52 52 52
Consolidated Y Y Y Y
Sales
Sales (€000) 39,823,000 40,523,000 40,187,000 39,642,000
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
Profit Margin (%) 12.34 17.59 12.90 12.19
Operating Profit (€000) 5,020,000 7,167,000 5,245,000 5,408,000
Employees
Number of Employees 168,000 174,000 175,000 189,000
Average Employee Remuneration (€) 24,774 24,098 25,246 23,201
Sales per Employee (€) 237,042 232,891 229,640 209,746
Profit per Employee (€) 29,262 40,971 29,623 25,561
Capital Employed per Employee (€) 151,292 128,402 135,674 122,688
Capital Employed (€000) 25,417,000 22,342,000 23,743,000 23,188,000
Return on Capital (%) 19.34 31.91 21.83 20.83
Net Worth (€000) -4,982,000 -6,143,000 -4,368,000 -5,976,000
Current Ratio 0.93 0.81 0.73 0.68

WRIGLEY CANDY UK
Registered Office Wrigley Candy UK Ltd

Estover Road
Plymouth
Devon, PL6 7PR
Holding Company None
Ultimate 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
Year End 27/12/08 29/12/07 30/12/06 31/12/05

Weeks 52 52 52 52
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
Profit Margin (%) 16.95 21.35 16.39 11.44
Employees
Number of Employees 2,232 2,814 3,221 3,588
Profit per Employee (£) 91,589 117,143 74,640 47,651
Return on Capital (%) 4,634.46 63.21 81.88 135.40
Net Worth (£000) 4,411 492,498 221,591 55,601
Current Ratio 1.08 0.51 0.40 0.40

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 31/12/09

Aunt Bessie's Ltd 50,684 5,070 25/04/09
Consort Frozen Foods Ltd 20,268 356 31/12/08
Country Style Foods Ltd 78,180 3,406 30/04/09
Dawn Foods Ltd 27,889 1,996 31/12/08
Delice de France PLC 179,302 8,470 31/07/09
Delifrance (UK) Ltd 45,222 3,248 31/12/08
Fletchers Bakeries Ltd 82,916 -5,388 28/03/09
Fredericks Dairies Ltd 38,574 2,662 31/08/09
General Mills UK Ltd 233,502 3,672 30/04/09
Greencore Group PLC† 1,103,800 -406 25/09/09
Harry Yearsley Ltd 141,497 3,445 28/03/09
HJ Heinz Frozen
& Chilled Foods Ltd 117,400 -20,500 29/04/09
Hunt's Foodservice Ltd 35,095 -657 31/03/09
Kitchen Range Foods Ltd 30,696 877 27/12/08
Lantmannen Unibake
UK Holdings Ltd 96 700 31/12/08
Mackie's Ltd 11,303 806 31/05/09
R&R Ice Cream UK Ltd 132,210 17,841 28/12/08
Scholler Ice Cream Ltd 8,391 155 31/12/08
Unilever PLC† 39,823,000 4,916,000 31/12/09
Yeo 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 Federation Ice Cream Alliance
Warwick House Melbourne Court
Unit 7 Millennium Way
Long Bennington Business Park Pride Park
Main Road Derby
Long Bennington Derbyshire, DE24 8HZ
Newark, NG23 5JR Telephone: 01332-203 333
Telephone: 01400-283 090 Fax: 01332-203 420
Fax: 01400-283 097 E-mail: info@ice-cream.org
http://www.bfff.co.uk http://www.ice-cream.org
Euroglaces
Avenue des Arts 43
1040 Brussels
Belgium
Telephone: 0032-2514 1111
E-mail: info@euroglaces.eu
http://www.euroglaces.eu
Publications
Convenience Store
William Reed Business Media
Broadfield Park
Crawley
West Sussex, RH11 9RT
Telephone: 01293-613 400
http://www.thegrocer.co.uk
Daily Post (Liverpool)

Trinity Mirror North West & North
Wales Limited
PO Box 48
Old Hall Street
Liverpool, L69 3EB
Telephone: 01512-272 000
http://www.liverpooldailypost.co.uk
The Grocer
William Reed Business Media
Broadfield Park
Crawley
West Sussex, RH11 9RT
Telephone: 01293-613 400
http://www.thegrocer.co.uk

General Sources
ICC Ltd Kantar Media
Field House Ealing Gateway
72 Oldfield Road 26-30 Uxbridge Road
Hampton Ealing
Middlesex, TW12 2HQ London, W5 2BP
Telephone: 020-8481 8855 Telephone: 020-8433 4000
Fax: 020-8941 6014 Fax: 020-8433 4001
E-mail: info@icc.co.uk http://www.kantarmedia.com
http://www.icc.co.uk
Nielsen Media Research
ICC provides in-depth, Atrium Court
business-critical information for risk The Ring
and credit decision-making. A range Bracknell
of flexible online tools provide access Berkshire, RG12 1BZ
to the most comprehensive content Telephone: 01344-469 100
on all UK and Irish businesses. Fax: 01344-469 102
E-mail: mediacommunicationuk
ICC offers access to information @nielsen.com
through high-speed online http://www.nielsenmedia.co.uk
delivery tools:
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The data include:
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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.

Government Sources
Food Safety Authority National Statistics
Aviation House 1 Drummond Gate
125 Kingsway London, SW1V 2QQ
London, WC2B 6NH Telephone: 020-7533 5888
Telephone: 020-7276 8000 Fax: 01633-812 599
http://www.food.gov.uk http://www.statistics.gov.uk
• Consumer Trends
Government Actuary's Department • Economic & Labour Market Review
Finlaison House
• Monthly Digest of Statistics
15-17 Furnival Street
• UK Business: Activity, Size
London, EC4A 1AB
and Location
Telephone: 020-7211 2601
E-mail: enquiries@gad.gov.uk uktradeinfo
http://www.gad.gov.uk HM Revenue & Customs
• 2006-Based National Population 3rd Floor Central
Projections Alexander House
21 Victoria Avenue
HM Treasury
Southend on Sea
1 Horse Guards Road
Essex, SS99 1AA
London, SW1A 2HQ
Telephone: 01702-367 485
Telephone: 020-7270 4558
http://www.uktradeinfo.com
Fax: 020-7270 4861
http://www.hm-treasury.gov.uk
• Forecasts for the UK Economy —
Treasury Independent Average
Key Note Sources

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• Sweet & Salty Snacks
• Fruit, Flower & Vegetable Growers
• Trends in Food Shopping
& Merchants
• Vegetarian Foods • Grocery Wholesalers &
£899 each
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• Meat, Egg & Poultry Industry
£420 each

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information and contact details. You For each region of Great Britain,
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which are profiled in each report.
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• Agri-Business You can also choose from these
• Bakeries further services:
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• Compound Animal Feedstuffs
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• Confectionery Manufacturers choose exactly what performance
• The Dairy Industry information you need on them —
• The Food Ingredients Industry with our Bespoke Data Service. We
• Frozen Food Distributors will be able to provide you with
• Frozen Food Producers information covering the companies,
• Grocery Wholesalers sectors, performance figures, ratios
• Meat Processors and other data items specific to your
• Meat Wholesalers individual requirements alone. Even
• Poultry Processors historical figures can be provided.
• Supermarkets
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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.
The total
Across
number of
adults, The % of 15-24
housewives, year-olds, etc. who
households, Table Heading are users.
etc.
Population Number (000) Profile (%) Penetration (%)
All housewives 20,371 13,535 100.0 66.4
Age
15-24 1,045 7.7 0.03

This is the
projected
25-34 2,697 19.9 12.1
number of
people in each
Social Grade Down
subgroup who
The % of each
use the product.
AB subgroup who are .0 61.5
users. Each
C1 subgroup should .0 71.9
total 100%
Region vertically.
Greater
London 2,557 10.4 55.2
Source: Target Group Index, © Kantar Media, 1995
TGI data used in Key Note reports are broken down by age, social grade and standard region.

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.
Social Grade Social Status Head of Household’s Occupation

A Upper middle class Higher managerial, administrative or professional
B Middle class Intermediate managerial, administrative or
professional
C1 Lower middle class Supervisory or clerical and junior managerial,
administrative or professional
C2 Skilled working Skilled manual workers
class
D Working class Semi and unskilled workers
E Those at lowest State pensioners or widows
levels of
subsistence (no
other earner)
Standard Region
This is as defined by the Registrar-General.

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 Reports

Key Note publishes over 180 titles each year, across both the Key Note and Market
Assessment product ranges. The total range covers consumer, lifestyle, financial
services and industrial sectors.
Title Edition Published Title Edition Published
Market Reports and Reports Plus China & Earthenware 27 2010
A
Cigarettes & Tobacco 23 2009
Access Control 10 2008 Cinemas & Theatres 9 2001
Accountancy 13 2009 Closed-Circuit Television 11 2009
Aerospace 12 2003 Clothing Manufacturing 15 2008
Agrochemicals & Fertilisers 3 2002 Clothing Retailing 7 2009
Air Freight 2 2005 Commercial Radio 8 2004
Airlines 20 2009 Commercial Vehicles 15 2009
Airports 14 2010 Computer Hardware 8 2010
Animal Feedstuffs 11 2001 Computer Services 8 2008
Arts & Media Sponsorship 3 2008 Computer Software 7 2008
Automatic Vending 24 2010 Confectionery 28 2010
Automotive Services 7 2010 Consumer Internet Usage 4 2000
Autoparts 19 2009 Consumer Magazines 16 2009

Contraception 4 2009
B
Contract Catering &
Baths & Sanitaryware 14 2009
Foodservice Management 21 2010
Bearings 2 2007
Contract Cleaning 21 2010
Betting & Gaming 22 2009
Cooking Sauces & Food
Biscuits & Cakes 17 2010 Seasonings 4 2010
Book Publishing 19 2007 Corporate & Promotional
Bookselling 16 2009 Giftware 3 2008
Bread & Bakery Products 25 2010 Corporate Hospitality 6 2007
Breakfast Cereals 14 2009 Cosmetics & Fragrances 23 2010
Breweries & the Beer Cosmetic Surgery 8 2010
Market 27 2008 Courier & Express Services 15 2008
Bricks & Tiles 15 2008 D
Bridalwear 5 2010 Dark Spirits & Liqueurs 3 2004
Builders’ Merchants 16 2008 Debt Management
Building Contracting 10 2009 (Commercial & Consumer) 5 2008
Building Materials 13 2008 Defence Equipment 11 2010
Bus & Coach Operators 10 2010 Design Consultancies 3 2000
Business Press 14 2009 Digital Broadcasting 4 2009
C Digital Communications 1 2009
Cable & Satellite TV 10 2004 Digital TV 2 2003
Camping & Caravanning 13 2002 Direct Marketing 19 2009
Canned Foods 17 2009 Discount Retailing 7 2009
Carpets & Floorcoverings 16 2009 Disposable Paper Products 13 2009
Catering Equipment 13 2010 Document Imaging Systems 1 2007
Chemical Industry Domestic Heating 14 2009

13 2010
Childrenswear 8 2009 Dry Cleaning & Laundry
Services 5 2005
Chilled Foods 15 2009

E H
Electrical Contracting 9 2009 Hand Luggage

Electrical Wholesale 5 2009 & Leather Goods 15 2010
Electricity Industry 6 2009 Health Clubs
& Leisure Centres 9 2009
Electronic Component
Distribution 12 2002 Health Foods 22 2003
Electronic Component Heating, Ventilating
Manufacturing 11 2002 & Air Conditioning 9 2002
Electronic Games 4 2003 Home Furnishings 19 2009
Equipment for the Disabled 5 2009 Home Shopping 13 2009
Equipment Leasing 12 2003 Horticultural Retailing 17 2008
Estate Agents 17 2008 Hotels 24 2009
Ethnic Foods 15 2009 Housebuilding 18 2009
Exhibitions & Conferences 11 2009 Household Appliances

(Brown Goods) 11 2008
F
Household Appliances
Factoring & Invoice (White Goods) 16 2008
Discounting 2 2003
Household Detergents &
Fast Food & Home Delivery Cleaners 16 2009
Outlets 23 2008
Household Furniture 18 2008
The Film Industry 4 2002
I
Finance Houses 11 2000
Ice Creams & Frozen
Fire Protection Equipment 8 2006 Desserts 14 2010
Fish & Fish Products 13 2008 Industrial Fasteners 8 2001
Fitted Kitchens 7 2007 Industrial Pumps 5 2000
Football Clubs & Finance 4 2009 Industrial Valves 8 2001
Footwear 16 2009 Insurance Companies 12 2009
Franchising 12 2010 Internet Usage in Business 8 2005
Free-To-Air TV 8 2004 IT Security 9 2009
Freight Forwarding 17 2009 IT Training 12 2009
Frozen Foods 24 2009 J
Fruit Juices & Health Drinks 13 2010 Jewellery & Watches 25 2009
Fruit & Vegetables 21 2009 K
Further & Higher Education 6 2009 Kitchenware 7 2009
G L
Garden Equipment 13 2009 Laboratory Equipment 9 2008
Gas Industry 5 2009 Lighting Equipment 14 2002
Giftware 18 2009 Lingerie 9 2010
Glassware 15 2009
M
Greetings Cards 25 2009
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 S
Natural Products 2 2007 Sauces & Spreads 11 2008
New Media Marketing 3 2002 Shopfitting 14 2009
Newspapers 17 2008 Short Break Holidays 4 2001
Non-Metal Recycling 2 2008 Slimming Market 8 2000
O Small Domestic Electrical
Appliances 11 2007
Office Furniture 21 2008 Snack Foods 20 2010
Offshore Oil & Gas Industry 5 2009 Soft Drinks (Carbonated &
Ophthalmic Goods & Concentrated) 17 2008
Services 16 2008 Soup Market 3 2009
OTC Pharmaceuticals 14 2010 Sports Clothing & Footwear 12 2009
Own Brands 12 2007 Sports Equipment 15 2009
P Sports Sponsorship 7 2009
Packaging (Food & Drink) 6 2010 Stationery
Packaging (Glass) 13 2008 (Personal & Office) 24 2008
Packaging (Metals & T
Aerosols) 12 2003 Take Home Trade 17 2008
Packaging (Paper & Board) 15 2010 Telecommunications 21 2007
Packaging (Plastics) 15 2010 Timber & Joinery 19 2008
Paper & Board Toiletries 22 2009
Manufacturing 14 2002
Tourist Attractions 5 2001
Personal Banking 11 2000
Toys & Games 23 2009
Photocopiers & Fax
Machines 14 2005 Training 18 2009
Plant Hire 13 2007 Travel Agents & Overseas
Tour Operators 22 2009
Plastics Processing 10 2003
Tyre Industry 4 2008
Poultry 3 2008
V
Power Tools 5 2007
Vehicle Security 8 2007
Premium Lagers, Beers
& Ciders 8 2009 Videoconferencing 4 2007
Printing 15 2010 Video & DVD Retail & Hire 8 2005
Private Healthcare 20 2009 W
Protective Clothing Wallcoverings
& Equipment 7 2009 & Ceramic Tiles 17 2006
Public Houses 26 2010 Waste Management 9 2008
R Water Industry 5 2010
Rail Travel 7 2008 Windows & Doors 19 2008
Ready Meals 11 2009 Wine 20 2009
Recruitment Agencies White Spirits 1 2005
(Permanent) 10 2010
Market Reviews
Recruitment Agencies
(Temporary & Contract) 10 2010 Catering Market 21 2009
Renewable Energy 3 2009 Clothing & Footwear

Industry 12 2008
Restaurants 24 2009
UK Computer Market 11 2004
Retail Chemists &
Drugstores 16 2010 Construction Industry 11 2009
Road Haulage 22 2009 Contracted-Out Services 3 2007

Defence Industry 7 2003
Distribution Industry 10 2009

DIY & Home Improvements B2B Marketing 2008

Industry 11 2009 Business Travel Market 2008
Drinks Market 19 2009 C
Energy Industry 8 2010 Cable and Satellite Services 2002
Film Market 2 2009 Charity Funding 2005
Food Industry 20 2010 Childcare 2008
Healthcare Market 10 2005 Children’s Publishing 2008
Insurance Industry 10 2009 Clothing Retailers 2000
The Legal Services Market 1 2005 Coffee & Sandwich Shops 2009
Leisure & Recreation Commercial Dynamics in
Market 15 2005 Financial Services 2005
Leisure in the Home 2 2008 Commercial Insurance for
Leisure Outside the Home 2 2008 Small Businesses 2009
Local Government Services 3 2010 Condiments and Sauces 2008
Mechanical Handling 1 2001 Consumer Credit & Debt 2007
Motor Industry 12 2008 Contact Centres 2010
Music Industry 2 2010 Contraception 2002
Office Equipment Industry 9 2010 Cooking & Eating 2009
Packaging (Food & Drink) Cross-Border Shopping 2000
Industry 1 2003 Cruise Market 2008
Passenger Travel in the UK 5 2007 Customer Loyalty in Financial Services 2000
Pharmaceuticals Industry 6 2008 Customer Magazines & Contract
Process Plant Industry 1 2000 Publishing 2009
Publishing Industry 12 2008 Customer Relationship Management 2008
Railway Industry 2 2006 Customer Services in
Security Industry 13 2010 Financial Organisations 2010
Sports Market 13 2010 C2DE Consumer 2008
Travel & Tourism Market 16 2009 D
UK Internet Market 1 2009 Diet Foods 2009
DINKY Market 2007
Market Assessment Reports
Direct Insurance 2010
A
Direct Mortgages 2008
ABC1 Consumer 2008
Domestic Lighting and
Activity Holidays 2009 Electrical Products 2000
Advertising Agencies 2007 Domestic Telecommunications 2006
All-Inclusive Holidays 2000 E
Alternative Healthcare 2010 E-Commerce: The Internet
Audio-Visual Retailing 2000 Grocery Market 2009
B E-Commerce: The Internet Leisure &
Entertainment Market 2008
Baby Foods 2006
Electronic Banking 2008
Baby Products 2008
EMU — The Impact on the UK
Baths and Showers 2000
Financial Services Industry 2003
Beds, Bedrooms and
Upholstered Furniture 2000 E-Recruitment 2006
Betting and Gaming 2002 E-Shopping 2002
Book Retailing on the Internet 2007 Estate Agents and Services 2010
Bottled Water 2003 Ethnic Foods 2002
Bridalwear 2002 European Electricity Industry 2007
Business Postal Services 2008 European Gas Industry 2007

European Long-Term Insurance 2008 Internet Service Providers 2005

European Oil & Gas Industry 2007 Issues and Challenges in the UK Life
European Renewable 2008 Assurance Market 2002
Energy Industry Issues in Higher Education Funding 2006
IT Recruitment 2010
European Short Breaks 2008
L
European Telecommunications 2002
European Tourist Attractions 2009 Lifestyle Magazines 2008
European Trends in Food Shopping 2009 Low-Fat & Reduced-Sugar Foods 2008
European Water Industry 2007 The Luggage Market 2000
Extended Financial Families 2005 M
F Marketing to Children 4-11 2003
Financial Services Marketing to ABs 2006 Marketing in the Digital

Age 2009
Financial Services Marketing to ABC1s 2000
Medical & Health Insurance 2007
Financial Services Marketing to BCs 2009
Men and Women’s Buying Habits 2008
Financial Services Marketing to
C1C2DEs 2006 Men’s Toiletries & Fragrances 2008
Financial Services Marketing to DEs 2009 Millennium Youth 2002
Financial Services Mobile Marketing 2009

Marketing to Over 60s 2004 Motor Finance 2008
Financial Services Marketing N
to the Affluent 2009 The Newspaper Industry 2005
Financial Services Marketing to the Non-Food Sales in Supermarkets 2008
Retired and Elderly 2007
Nutraceuticals 2008
Financial Services Marketing to
Start-Up Businesses and the O
Self-Employed 2003 Off-Trade Spirits 2004
Financial Services Organisations on Opticians & Optical Goods 2010
the Internet 2009
Organic Baby & Toddler
The Fish Industry 2001 Care 2007
Forecourt Retailing 2010 Organic Food & Drink 2010
Functional Foods 2008 OTC Pharmaceuticals 2000
Funding in Higher Education 2002 Over-40s Consumer 2005
G Over-50s Consumer 2009
General Insurance 2010 P
Generation Y 2007 Pay TV 2004
Global Waste Management 2007 Pension Extenders 2002
Green and Ethical Consumer 2008 Pensions 2009
Grey Consumer 2009 Personal Banking 2003
H Personal Lines Insurance 2010
Healthy Eating 2008 Personal Loans 2008
Holiday Purchasing Patterns 2009 Pet Market 2009
Home Entertainment 2008 Planning for Retirement 2008
Hot Beverages 2009 Plastic Cards in Europe 2005
I Plus-Size Fashion 2009
In-Car Entertainment 2000 Private Sector Opportunities in
Independent Financial Advisers 2008 Education 2001
Individual Savings Accounts 2005 Public Relations Industry 2007
Insurance Prospects 2008 Public Transport 2001
Internet Advertising 2009

R T
The Railway Industry 2004 Teenage Fashionwear 2008
Ready Meals 2001 Teenage & Pre-Teen Magazines 2009
Recycling and the Environment 2000 Teleworking 2003
Retail Credit 2000 Trends in Food Shopping 2008
Retail Development 2001 Trends in Leisure Activities 2007
Rural Economy 2009 Tweenagers 2005
S U
Savings & Investments 2007 Utilities 2010
Saving Trends in the Eurozone 2002 V
Singles Market 2009 Vegetarian Foods 2009
Shopping Centres 2008 Vehicle Breakdown Services 2010
Short Breaks 2004 Vitamins, Minerals & Supplements 2009
Slimming Market 2009 W
Small Businesses & Banks 2010 White Goods 2000
Small Office Home Office Consumer 2001 Women Over 45 2007
Small Office Home Office Products 2001 Working Women 2009
The Soup Market 2001
Sponsorship 2000
Supermarket Own Labels 2009
Supermarket Services 2007
Sweet & Salty Snacks 2009
All rights reserved.
No part of this publication may be reproduced, copied, stored in an electronic retrieval system or transmitted save with
written permission or in accordance with the provisions of the Copyright, Designs and Patents Act 1988.
Published by Key Note Ltd, 5th Floor, Harlequin House, 7 High Street, Teddington, Richmond Upon Thames, TW11 8EE
Telephone: 0845-504 0452
Stringent efforts have been made by Key Note to ensure accuracy. However, due principally to the fact that data cannot
always be verified, it is possible that some errors or omissions may occur; Key Note cannot accept responsibility for such
errors or omissions. Details supplied by Key Note should only be used as an aid, to assist the making of business decisions,
not as the sole basis for taking such decisions.
Under the new Privacy and Electronic Communications Regulations 2004, it is unlawful for a business to make an unsolicited
sales & marketing call to a corporate subscriber if it is either registered with CTPS or has requested NOT to receive such calls.
Key Note Ltd holds and regularly updates (every 28 days) its data in accordance with the regulations and ensures that its
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Key Note Ltd does not hold itself liable for any subsequent legalities.
If you have any queries regarding the CTPS legislation you may find the following website useful: www.ico.gov.uk

Ice Creams &amp; Frozen Desserts 2010

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Market Report Plus 2010

Fourteenth Edition, May 2010

Ice Creams & Frozen Desserts

In today’s com petitive business environm ent, knowledge and understanding

“The Chartered Institute of M arketing encourages the use of market research as

“Having subscribed to M arket Assessm ent reports for a number of years, we

“M arket Assessment reports provide an extremely comprehensive source of

© Key Note Ltd 2010

REPORT COVERAGE .......................................................................................................................2

THE TOTAL MARKET......................................................................................................................9

© Key Note Ltd 2010

© Key Note Ltd 2010

THE MARKETPLACE .....................................................................................................................25

© Key Note Ltd 2010

R&R Ice Cream.................................................................................................................................34

6. Strengths, Weaknesses, Opportunities and Threats 39

CONSUMER PENETRATION ........................................................................................................41

© Key Note Ltd 2010

By Social Grade ...............................................................................................................................43

9. The Global Market 46

PRODUCT DEVELOPMENT ..........................................................................................................46

© Key Note Ltd 2010

FUTURE TRENDS ...........................................................................................................................51

11. Company Profiles 54

Fredericks Dairies Ltd .....................................................................................................................55

12. Company Financials 65

13. Further Sources 66

Understanding TGI Data 71

Number, Profile, Penetration.........................................................................................................71

Key Note Research 73

The Key Note Range of Reports 74

© Key Note Ltd 2010

• “Ice cream sales across the winter

• “The ice cream market is so impulsive

• “The market has been driven by the

© Key Note Ltd 2010

© Key Note Ltd 2010 1

• the take-home sector

© Key Note Ltd 2010 2

The weather forecasters promised the UK a ‘barbecue summer’ in 2009,

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

• success of home gaming systems such as Nintendo Wii

With growth in impulse sales restricted by external factors such as the

The range of single-serve chocolate snack ice creams as well as individual

© Key Note Ltd 2010 3

According to The Grocer, in 2009 Unilever’s Wall’s portfolio of products took

Frozen Food up in Recession

Iceland also reported an improvement in sales in 2009, which it attributed,

Gross Domestic Product

© Key Note Ltd 2010 4

Table 1.1: UK Gross Domestic Product at Current and

2005 2006 2007 2008 2009

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

GDP — gross domestic product

Source: Economic & Labour Market Review, February 2010, National

Household Disposable Income

© Key Note Ltd 2010 5

Table 1.2: UK Household Disposable Income Per Capita

2004 2005 2006 2007 2008

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

Source: Economic & Labour Market Review, February 2010, National

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

2005 2006 2007 2008 2009

Ice Creams & Frozen Desserts 2010

Ice Creams & Frozen Desserts 2010