Hell will freeze over before ice-cream manufacturers HB and confectioners Mars see eye to eye on HB's practice of operating freezer exclusivity in shop outlets.

HB, owned by Unilever, launched another salvo yesterday in the seven-year-old legal wrangle on whether the practice is anti-competitive. The Anglo-Dutch group issued a statement saying it would appeal to the European courts any European Commission ruling which would go against its single-brand freezer policy.

"No decision has been announced by the Commission and, in the light of this, further speculation would be premature," Unilever/HB stated.

Mars stated that they expected the ruling to be in their favour, as has been reported. The issue, which is being fought from Irish shores, is regarded as a test case for European Community law on restrictive agreements.

The dispute is also being fought through the Irish courts after the two companies sued each other in the High Court in 1992. HB sought an order preventing Masterfoods Ltd, trading as Mars Ireland, having its products kept in HB-manufactured freezers. Mars lost its case but appealed the court's decision to the Supreme Court, which will be heard on June 9th.

But a legal source said that if HB appeal to the European Court of First Instance, and if it subsequently goes to the European Court of Justice, the decision would take precedence.

Apart from HB, the only other Irish ice-cream manufacturers are Silver Pail Dairy in Fermoy, Co Cork, and Leadmore Dairies in Kilrush, Co Clare.

Mr Eddie Brown, general manager at Leadmore, said that the plant felt the effect of the freezer exclusivity practice and would be in favour of Mars. "All small, independent manufacturers and suppliers would be. It makes for an open market," he said.