Poll points to end of the ice age

Just 58% of respondents to Food Manufacture's latest online poll believed there was a long-term future for UK frozen food firms. A third (32%) thought that there was not and 10% were unsure.

The poll was taken as confidence in the sector sank to new lows following the closure of Global Cake Company's frozen cakes factory in Bridlington and the collapse of cold storage and distribution firm Celsius First.

While Unilever has had some success with frozen peas and fish products, sales of its frozen meals and poultry have slumped over the last year, despite the millions of pounds pumped into Captain Birds Eye's 'nutrition mission' promotional campaign.

Bankers have also claimed that Heinz's £200M price tag on its European frozen food business was too high, although negotiations to sell its Linda McCartney brand to Nestlé's Israeli subsidiary, the Osem Group, were reportedly at an advanced stage. Heinz declined to comment on the reports, but said an announcement was likely "in the very near future"

The sale of the frozen food business would take longer, as Birds Eye had to be "disentangled" from Unilever's ice cream business, which was not for sale, said the firm.

"Both businesses are based at the headquarters of Unilever Ice Cream & Frozen Foods at Walton-on-Thames, and we can't go to buyers before we can clarify exactly what is for sale," it said. "The two businesses are managed centrally and there are also distribution overlaps, so it's actually very complicated to pull them apart again."

Figures from TNS Worldpanel for the year to December 4, 2005, suggested that the retail frozen food market had declined by 2.5% with the biggest slumps in red meat, ready meals and poultry.