Unilever secures a victory in ice cream wars

Ice cream manufacturers HB and Mars are limbering up for another round in their seven-year battle, following a victory by HB'…

Ice cream manufacturers HB and Mars are limbering up for another round in their seven-year battle, following a victory by HB's parent, Unilever, at the EU's Court of First Instance in Luxembourg.

The court yesterday suspended a decision handed down by the European Commission last January in favour of Mars, which forced HB to share its freezer cabinets in Irish shops with rivals. The latest turn of events will once again allow Unilever to operate designated freezers for its products, pending a full appeal.

A Unilever spokesman welcomed the outcome, stating that it would clear the way for Unilever to make a full appeal against the ruling in the Luxembourg court. "We strongly believe that the current practice in the ice cream market in Ireland of having dedicated ice cream cabinets is in the public interest. Consumer choice and service is enhanced by the provision of cabinets," he added.

A spokesman for Mars, however, expressed its disappointment. It will prolong its battle for the "rights of consumers to buy ice creams where and when they want", he stated. The battle between the two confectionery giants is being closely watched by other players in the industry.

READ MORE

It began in 1991 when Mars complained to the European Commission about Unilever's insistence on the exclusive use of its freezers for its own products. The exclusion of other products from its freezer's was viewed to be anti-competitive by Mars. Unilever is the world's biggest ice cream manufacturer, selling £3.6 billion of ice cream annually.