Evaluation of Entry into Ice cream Business - BRAC University ...

3.1 Overview
3.0 GLOBAL ICE CREAM INDUSTRY
Global Ice cream industry is estimated at 43 Billion Euros 1 ($54 Billion) at the end of 2009. Unilever
business is currently at 4.7 billion Euros ($6.04 Billion). Nestle’ outpaced Unilever with recent
acquisition of U.S. Company Dreyer's Grand Ice Cream Holdings Inc and became world’s largest ice
cream manufacturer with 28% market share compared to that of 17.6% Unilever share.
3.2 Unilever Ice cream Business
Unilever Ice cream business under the umbrella name of “Heart” brand (also known as Wall’s,
Algida, Ola etc in different countries) has been one of the most successful businesses in the food
category. As of 2009, Unilever ice cream sales stands as following.
Region 2007 2008 2009
Europe 2315 2,392 2,455
North America 1,269 1,283 1,298
Asia 444 506 576
Latin America 408 430 452
Total (Mln. Euros) 4,412 4,611 4,781
Table 6: Unilever’s Global Ice cream Business
Current market standing based on Underlying Sales Growth (USG) and Market share for Unilever in
Asia is excellent and market is currently growing at a very high rate compared other three regions.
Market is not saturated and many untapped countries like Bangladesh can provide more growth from
this region. Unilever Portfolio under “Heart” or “Wall’s” brand looks as follows:
Magnum
Magnum Cornetto Carte d'Or Carte d'Or
Light
Figure 5: Unilever Ice cream Portfolio
Breyers
CarbSmart
Solero Ben&Jerry’s
Among these Magnum is Premium Extrusion stick, Cornetto is Cone, Solero is fruit based and
Ben&Jerry’s is super premium ice cream that is sold through dedicated boutiques. Others are filled
SKUs. In recent times there have been additions of sub-brands like Frusi and Moos.
1 Source: Reuters (Global AC Nielsen study)
Evaluation of Entry into Ice cream Business for Bangladesh Limited 15