Kraft inks ‘transformational’ JV with R&R Ice Cream
Lambert informed DairyReporter.com about the deal in a phone conversation this morning concerning the firm’s new German acquisition. The agreement covers five Kraft brands (Milka, Toblerone, Daim, Oreo and Philadelphia) in 10 European markets.
These are: Germany, Austria, Switzerland, France, Italy, Spain, Portugal, the Netherlands, Belgium and Luxembourg.
Discussing R&R's move to bring "confectionery innovation" in ice cream to European markets, Lambert said: “We believe this venture could achieve additional sales of some €100 million for Kraft branded products within five years.”
He added: “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 Nestlé Ice Cream business changed our UK operations.”
Lambert said R&R would use surplus cash from a €350m company bond generated last November to pursue its consolidation strategy within the European ice cream market, and to invest in facilities.
