FDBusiness.com

R&R Ice Cream, Europe’s largest own label ice cream manufacturer, is joining forces with Kraft Foods to bring confectionery innovation to ice cream markets across mainland Europe. In co-operation with Kraft Foods, R&R will initially develop, manufacture and distribute an indulgent ice cream range of five iconic Kraft brands – Milka, Toblerone, Daim, Oreo and Philadelphia – across ten European markets – Germany, Austria, Switzerland, France, Italy, Spain, Portugal, Netherlands, Belgium and Luxembourg. The first products will hit the shelves in Spring 2012 and are likely to appear in an individual serve ice cream format similar to R&R’s Nestle Potz range, which has proved so successful in the UK.

“We believe this venture could achieve additional sales of some Eur100 million for Kraft branded products within five years,” says James Lambert, chief executive and executive chairman of R&R Ice Cream. “It gives us a world-leading food brand across much of Western Europe and further enhances our reputation as a one-stop shop for both branded and own label ice cream products. I fully expect the Kraft deal to transform the European business in much the same way as the 2001 acquisition of the Nestle Ice Cream business changed our UK operations.”

He continues: “R&R is in great shape for 2012. The surplus cash from last November’s Eur350 million bond will be fully invested by early next year resulting in significantly increased EBITDA and free cash flows. Our cash flow generation will also enable us to further pursue our strategy of consolidating the European ice cream market and investing in our factories to reduce costs and increase innovation for customers and consumers.”