R&R in Europe isn't 'rest and relaxation': it's the biggest ice cream merger ever.

It's official. Roncadin GmbH and Richmond, two of Europe's largest ice cream manufacturers, are now one. Sister companies since May 2006, they have now been consolidated as the R&R Ice Cream Group, Europe's biggest producer of dealer brands, or private labels.

Roncadin's parent company, Oaktree Capital, took over Richmond Ice Cream, England's market leader in the impulse ice cream purchase sector, in 2006. With the merger and change of name, the new R&R Ice Cream group can call on a larger network and further expand services at the international level.

Achim Schon, previously chairman of the management board at Roncadin, is now the first chairman at R&R Ice Cream Deutschland. Executive board chairman of the company group for Europe and Great Britain is James Lambert, previously chairman of the management at Richmond Ice Cream.

Beyond Roncadin's factories in Osnabruck (Germany), Vayres (France) and Mielec (Poland), capacity of the English factories in Crossgates and Leeming Bar, will increase R&R's output by 300 million liters. Together, both companies will produce more than 500 million liters of ice cream and will ring up annual sales exceeding 500 million euros.

While the private labels are the most important part of the product range, these will be supplemented by the company's own brands and licensed brands. The better known German names--Landliebe ice cream, Nasch, Kapt'n Cool Schatztruhe and nimm2--will now be joined by the English partner's licensed brands such as Nestle, Smarties, Rolo and After Eight. As a result of the merger, the trade will now be able to fall back on this wider variety of dealer brands and licensed brands.

Combined purchasing, standardized information technology and joint product and production development will I optimize the group's internal processes. The specialization of the production locations and the joint--and hence more efficient--use of capacity will result in further advantages for R&R. The merger will have no implications for the employees at the Osnabruck plant or the newly formed R&R Ice Cream's other production facilities. Previous work processes will remain in place, which will also mean the retention of all jobs.

Meanwhile, in December R&R Deutschland announced the appointment of Hans-Dietrich Kuhl as the company's new chief sales officer for Europe. He came to the job with many years of experience in the branded and private label segments of food and beverage businesses, having most recently worked with Refresco.

"We are very delighted to secure the services of Mr. Kuhl," said CEO Schon. "He will work with me over the next six to 12 months to assure the smooth handover of our sales and marketing structure and ensure a stable continuation of services to our customers."

During the second half of 2008, Herr Schon is expected to become a non-executive member of the R&R Ice Cream board.

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