Ice cream maker has plans to lick Europe

North Yorkshire-based R&R said the deal could be worth an extra E100m (£86m) in sales over the next five years.

The group, headed by chief executive James Lambert, will develop and make an ice cream range for the five brands, which also include Milka, Daim and Philadelphia. The products will be supplied to Germany, Austria, Switzerland, France, Italy, Spain, Portugal, Netherlands, Belgium and Luxembourg in spring 2012.

“We believe this venture could achieve additional sales of some E100m for Kraft-branded products within five years,” said Mr Lambert. “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.”

Last week, R&R announced a deal to buy a leading German-based ice cream maker. R&R said the agreement to acquire Durigon Gelato, for an undisclosed sum, must be cleared by the German Federal Cartel Office. Durigon, which is based at Schwanewede-Brundorf near Bremen, has 70 staff, and annual sales of E20m.

Northallerton-based R&R, which is Europe’s largest private label ice cream manufacturer, employs 650 staff in Yorkshire and 2,000 in total. The company, owned by private equity firm Oaktree Capital Management, said the E350m raised a year ago through a bond issue will be fully invested by early next year. “R&R is in great shape for 2012,” said Mr Lambert.