Kraft joins R&R for JV
Cadbury owner Kraft Foods has teamed up with a Yorkshire ice cream maker in a joint venture it hopes will generate additional sales of €100m.
R&R Ice Cream will help develop, manufacture and distribute an ice cream range of 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 be available in spring 2012.
"We believe this venture could achieve additional sales of some €100m for Kraft branded products within five years," said James Lambert, 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 Nestlé Ice Cream business changed our UK operations.
"R&R is in great shape for 2012. The surplus cash from last November's €350m bond will be fully invested by early next year resulting in significantly increased EBITDA and free cashflows.
"Our cashflow 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."
