3 The market for impulse ice cream [per] - Competition Commission

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TABLE 3.4 Annual rates of change in the impulse market% change on previous year1989 1990 1991 1992 1993†Retail sales at constant1992 prices, £m*Wrapped impulse +27.9 +4.0 -2.4 -8.3 +6.4Scoop +15.0 -11.9 -17.6 -15.6 +5.1Soft mix +8.7 -4.9 +2.0 +0.0 }Total +22.1 -0.3 -4.2 -8.0 +6.0Volume, litonsWrapped impulse +31.7 -2.3 -10.8 -6.9 +0.2Scoop +14.4 -10.4 -21.8 -18.0 +2.0Soft mix +14.4 -7.0 -11.0 +3.8 }Total +25.2 -4.6 -12.7 -6.9 +0.8Source: MMC based on data supplied by BEW.*Adjusted by the RPI.†Estimate.TABLE 3.5 Total UK ice cream marketRetail sales at constant 1992 prices*Year Value in £m % change on previous year1988 704 -1989 820 +16.61990 838 +2.11991 795 -5.11992 785 -1.31993† 831 +5.8Volume inYear litons ('000) % change on previous year1988 380 -1989 432 +13.61990 428 -0.91991 396 -7.41992 402 +1.51993† 428 +6.4Source: MMC based on data supplied by BEW.*Adjusted by the RPI.†Estimate.Seasonality of sales3.49. There is a strong relationship between the time of year and weather conditions and sales of impulse icecream. When there is a poor summer and temperatures below average, sales are depressed. The impact of theweather is much greater in the impulse market than in the take-home market. One national manufacturer told usthat in the impulse market the level of sales in the peak month is between eight and ten times that in the month ofpoorest sales. This contrasted with a peak at about half this level in the case of take-home sales. A secondnational manufacturer gave us monthly data (see Figure 3.2) which confirms that the range between the peak andtrough of impulse sales is much greater than those for other ice cream products.3.50. Short-term variations in the pattern of summer weather can lead to wide and unpredictable fluctuationsin sales from week to week and day to day. Sales of impulse ice cream in one week may be double or half thelevel of sales in the next and this variation may be even greater for individual products, and in particular water25
ices. These short-term variations are illustrated by the impact of very warm weather conditions in the last weekof May 1992 that coincided with the Spring Bank Holiday weekend. In just a four-day working week BEW soldover 9 per cent of annual sales of impulse ice cream (measured by portions). This level of sales was about 40 percent of all such sales for May 1992. The hot weather at that time was, however, untimely for Clarke Foods sinceit was unable to meet demand due to problems in commissioning new plant. The inability of stockists of LyonsMaid to obtain supplies at this time led to a large number turning to other suppliers for the remainder of thesummer season.3.51. The highly seasonal nature of the impulse ice cream trade continues despite efforts by manufacturers topromote off-season sales and to offer new products that can be eaten as a snack rather than just as refreshmentson a hot day.Types of impulse ice cream3.52. Impulse ice cream products may be classified into nine categories:(a) chocolate bars;(b) filled cones;(c) adult refreshment;(d) adult stick products;(e) children's novelty products;(f)cups;(g) card tubes;(h) single briquettes; and(i)frozen hand-held yoghurt.These categories are briefly described below:(j)Chocolate bars consist of chocolate-coated ice cream. Following the launch of Ice Cream Mars thissegment has seen rapid growth; it is now characterized by dairy ice cream blocks covered in realchocolate. Main items within this segment are Ice Cream Mars, Snickers, Bounty and Twix (all fromMars), Kick and Cadbury's Dairy Milk (BEW) and Classico, Crunch and Milky Bar (Nestlé).(k) Filled cones consist of individually wrapped wafer cones filled with ice cream plus various toppings.Mars is not represented in this segment and the Wall's Cornetto competes mainly with Lyons King Cone.(l)Adult refreshment includes adult-orientated fruit-flavoured water ices attached to a stick which areindividually wrapped. BEW's main lines in this part of the impulse market are Strawberry Split andOrange Fruitie. Lyons Maid has also named its major brands with reference to the relevant fruit flavouregRaspberry Mivvi and Orange Maid. Mars has two varieties of Opal Fruits.(m) Adult stick products comprise high-quality products such as dairy ice cream bars coated in real chocolatepresented on a stick. Magnum was launched by BEW in 1990, one year after Mars introduced the GalaxyDove Bar in the USA. Other examples of adult stick products are Feast and Nestlé Milk Chocolate.(n) Children's novelty products consist of a number of low-priced stick and water ice/lolly products, many ofwhich are frequently reshaped and slightly renamed, eg in 1993 BEW introduced Jurassic Park andHooded Skull, two water ice moulded products.26
Page 1 and 2: 3 The market for impulse ice creamC
Page 3 and 4: Other ice cream products3.5. Soft m
Page 5 and 6: The structure of the industryThe MM
Page 7 and 8: 3.28. Treats seeks to compete with
Page 9 and 10: Small-scale manufacturers3.39. Tabl
Page 15 and 16: (o)Cups comprise paper or plastic c
Page 17 and 18: mobile ice cream vans which are ser
Page 19 and 20: 3.70. Less than one-fifth of respon
Page 21 and 22: TABLE 3.8 1993 RRPs of brands of im
Page 23 and 24: TABLE 3.9 Recommended retail sellin
Page 25 and 26: 3.89. Table 3.11 indicates that in
Page 27 and 28: £3 million marketing support for t
Page 29: indicated in paragraph 3.52. Even i

3 The market for impulse ice cream [per] - Competition Commission

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