R&R Ice Cream acquires German rival

The German manufacturer was purchased through the acquisition of its share capital for an undisclosed sum.

James Lambert, chief executive of R&R Ice Cream, told FoodManufacture.co.uk, that the firm had received verbal approval from the German Federal Cartel Office. The acquisition is expected to be formally approved by the end of the week.

The acquisition will allow the firm to expand its tub ice cream business. It will also supply the extra capacity needed after it recently agreed a deal with Kraft to supply ice cream for one of its brands.

Durigon will add about 50M litres of capacity to R&R, bringing its total to near 1bn litres, said Lambert.

Second largest player​

The acquisition will consolidate its position as the second largest player in the European ice cream market and allow it to better compete with market leader, Unilever.

“Ice cream manufacturers can only compete with Unilever if they are on a big scale due to the need for lower costs and high levels of innovation,”​ said Lambert.

“We bought Durigon because it’s a good business, with a good facility and good people.” ​

Durigon has 70 employees at its Schwanewede-Brundorf facility near Bremen. The site’s location, 90 minutes from one of R&R’s existing factories, influenced the decision to buy.

Another factor was Durigon’s dairy, said Lambert.

R&R had agreed a deal with the family owners of Durigon, which prevented the firm from going into receivership, he added.

Last year, Durigon Gelato reported €20M in sales through supplying ice cream tubs in sizes ranging from 200ml to 5000ml. It also supplies other ice cream products including sandwiches.

Durigon supplied the own-label market and retailers, under the Durigon brand, throughout the EU.

The German firm’s md, Werner Durigon, will remain in place and the new owner plans to retain the brand name. R&R planned to invest in the factory and grow sales as it tried to capture more of the German market.

Future growth​

Werner Durigon, said: “I am pleased that our family’s and employees´ long association with Durigon will continue within the R&R group. And I look forward to strong future growth in our factory at Schwanewede.”​

Earlier this year, R&R acquired Pilpa, the ice cream division of French firm Maison Boncolac for about €17.65M plus stock options valued at a further €9M.

The 23M litres capacity facility in Carcassonnne in south west France employs 154 people and is a leading supplier of own-label ice cream to the French market.

It also maintains a strong branded presence through its Disney, Oasis and Pilpa brands.

Lambert told FoodManufacture.co.uk that R&R planned to make more acquisitions both at the end of this year and the beginning of 2012.