In main examination proceedings the Bundeskartellamt has cleared plans by DMK Eis Gmbh to acquire the Roseneis group. The planned merger mainly affects the German production of ice cream sold by food retail companies under their own private labels (so-called private-label ice cream).
Andreas Mundt, President of the Bundeskartellamt: "Although the level of concentration in the private-label ice cream sector is very high and still increasing, the merger could be cleared following an in-depth examination of the project. The food retail sector will continue to have enough scope in its procurement activities. In the production of ice cream there are free capacities which lead to competitive pressure. Moreover, with the food retail sector, the manufacturers of ice cream face a strong demand side."
So far there are essentially four suppliers in Germany who have focused their key activities on the production of private-label ice cream. These include the two merging companies Roseneis and DMK. DMK Eis GmbH belongs to the largest German dairy group, DMK Deutsches Milchkontor GmbH. Two other major suppliers are R&R Ice Cream Deutschland GmbH based in Osnabrück and Eisbär Eis GmbH in Apensen. By contrast, the well-known ice cream manufacturers Unilever and Nestlé almost exclusively manufacture ice cream for distribution under their own brands Langnese/Magnum and Schöller/Mövenpick.
The food retailers usually invite new tenders for the production of private-label ice cream each year and largely specify the recipes. This enables them to change supplier on a short-term basis, an opportunity which they have actually made use of in the past. According to the Bundeskartellamt's investigations, R&R in particular is, and will continue to be, a key competitor of the parties to the merger.
