Swiss icecream maker scoops up firm

By LIBBY MIDDLEBROOK

International icecream giant Movenpick has swallowed up a small New Zealand icecream manufacturer to boost its share of the Asian dessert market.

Swiss-based Movenpick this week agreed to buy Chateau Creme Delight Ice Cream, an Auckland-based dessert producer which employs 22 staff and makes more than 3.5 million litres of icecream each year. Movenpick is understood to have paid more than $3 million for the business.

Movenpick Asia Pacific managing director Chris White said the company was keen to increase its share of the Asian market, which until now has been restricted because of the high price of Movenpick.

Chateau, which already exports to Asia, produces mid-priced icecreams such as Chateau, Killinchy Gold and Lite Licks in more than 50 flavours.

"At the moment we're servicing to the top end of the market and there's lots of room for expansion," said Mr White. "The advantages New Zealand offers us are basically a high-quality product ... The dollar also gives us a significant advantage."

Movenpick already manufactures most of its Asia-Pacific icecream needs through Invercargill dairy company Southern Fresh Milk. Tip Top produces Movenpick for the domestic market.

Mr White said the company planned to at least double Chateau's annual production during the next two years, along with developing the company's brand throughout Asia and maintaining its New Zealand business.

"If you look at the food-service market in Singapore, for example, only 10 to 15 per cent of the hotels are true five-star accommodation. So there's a large proportion of the market who are not prepared to pay Movenpick prices but still want good-quality icecream."

Chateau's managing director, Frank Gilbert, who bought the business in 1988 with wife Anne, said Movenpick had the funding to expand the capital-intensive company faster.

Mr Gilbert, who will continue his role, said Movenpick would invest about $1 million during the next two years in Chateau, which has turnover of about $5 million.