R&R Ice Cream scoops Fredericks Dairies for £49M
Fredericks Dairies operates a factory at Skelmersdale and makes ice creams and iced refreshment brands such as Cadbury, Del Monte, Vimto, Britvic and Barratt’s. It achieved sales of £45M in the year to August 31 2012.
James Lambert, ceo and executive chairman of R&R Ice Cream, told FoodManufacture.co.uk the acquisition was a key step on the path to realising his ambition of rivalling ice cream giant Unilever in the UK and Europe. “We haven’t got anything to compete with [Unilever’s brand] Magnum and, to a lesser extent, Cornetto. This gives us the ammunition to compete,” he said.
Lambert added: “It will also enable R&R to extend its successful partnership with Mondelēz International into the UK. Fredericks is already launching a cone and 500ml super premium tub under the Oreo brand and this acquisition will allow us to accelerate this successful innovation programme alongside our popular Nestlé, Cadbury, Kelly’s and Yoomoo brands.”
Grow the UK ice cream market
R&R Ice Cream said the sharper completion following the acquisition would help to grow the UK ice cream market. At present the firm – which is Europe’s largest own-label ice cream manufacturer – accounts for about 30% of the market.
Unilever accounts for about 60% of the ice cream market. It was Unilever’s acquisition of the Ben and Jerry’s brand which transformed its presence in the sector, said Lambert.
Only two ice cream businesses in Europe generated cash – Unilever and R&R Ice Cream, he added. “The European ice cream sector will end up with two major businesses – Unilever and us. Nobody else is making money out of ice cream,” he said.
The lack of cash-generating ice cream businesses would lead to further consolidation in the sector and further acquisitions for R&R later this year or early next year, said Lambert.
The deal needs approval from the Office of Fair Trading.
Olympic and Paralympic Games
Fredericks was the sole supplier of ice cream to the 2012 Olympic and Paralympic Games.
The vendors of the Lancashire dairy – Frank and Philip Frederick – will retain their Freezeserve cold storage and distribution business at Simonswood.
They were advised by Stuart Moss and Neil Mitchell of Manchester-based corporate finance firm Rickett Mitchell and law firm Eversheds.
In January R&R Ice Cream bought the Yoomoo frozen yogurt brand for an undisclosed sum.
Brand founders Amanda and Daniel Gestetner will continue to run the brands’ chain of yogurt bars located in the UK, Greece and the Middle East.
Meanwhile, how does Lambert rate the reputation of the food chemist credited with inventing soft scoop ice cream and who later became prime minister? Find out here.
