10 September 2013

OFT approves R&R Ice Cream’s acquisition of Fredericks Dairies

On 11 July 2013, the OFT published its decision to clear the acquisition of Fredericks Dairies Limited by R&R Ice Cream. Both parties produced ice cream products under their own brands, licensed brands and retailer own brands. The OFT focused its investigation on retail “take home” ice cream. The parties submitted analysis demonstrating that promotions on their products gave rise to sufficient switching for the OFT to dismiss concerns about closeness of competition in certain segments, such as in relation to branded children’s products (particularly R&R’s Nestlé and Fredericks’ Cadbury licensed brands) or own label choc-ices (of which the parties were the only two suppliers in the UK). The OFT also took into account supply side substitution possibilities across ice cream formats. RBB Economics advised R&R Ice Cream during the course of the OFT’s investigation, working alongside Linklaters. See here for further information.

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