Released on = April 16, 2007, 1:48 am

Press Release Author = Bharat Book Bureau

Industry = Marketing

Press Release Summary = The UK market for ice cream and frozen desserts was valued
at £1.51bn in 2005, having risen by 2.7% since 2001.

Press Release Body = Ice Creams & Frozen Desserts Market Report Plus 2006
The UK market for ice cream and frozen desserts was valued at £1.51bn in 2005,
having risen by 2.7% since 2001. Sales have lagged slightly behind those of the food
market overall, although they have outperformed sales in the wider sugar and sweet
products category. There are two main sectors in the market - ice creams and frozen
desserts.

Sales of take-home ice cream account for the largest market share. This has been
encouraged by the success of multipacks of single-serve impulse items as well as
innovation in bulk ice cream brands. The major share of sales is taken by multipack
products, comprising larger packs of individual wrapped impulse products. With
regard to tubs, ice cream premium brands were the best performers in 2005, gaining
sales ahead of luxury and standard products. However, the take-home market tends to
offer a changing range of products on price-based promotions and introductory
offers, which may be adversely affecting values in the market.

Impulse ice cream is less price sensitive, and comprises a number of major products
and brands. These include Magnum, Cornetto and Skinny Cow, as well as the Mars,
Nestlé and Cadbury stick, bar and filled cones portfolios. Sales tend to centre on
the summer season, and can be affected by the weather.

The frozen dessert segment has struggled to retain value. The lack of strong
branding has been an issue, with the discounting that is endemic in the frozen foods
sector also having an adverse effect. However, there are some positive factors -
such as investment from the Aunt Bessies brand, the return of the Sara Lee brand and
the introduction of the McDougalls name.

The national market for ice creams and frozen desserts is dominated by a few
companies with strong brand portfolios. These include Unilever, Richmond Foods,
Fredericks Dairies, HJ Heinz and RHM Frozen Foods Ltd. Branding features heavily in
the market for impulse products, with a significant degree of crossover into
take-home ice cream. However, retailer own labels have also made headway.

There remains scope for further progress. The presence of strong branding and
ongoing product development and innovation are positive indicators for the market.

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