The northern hemisphere summer may be over, but ice cream still finds itself very much in the sunshine, with both of the two dominant global players amid corporate shake ups.
Firstly, it is anticipated that Goldman Sachs will partner PAI as a new financial investor in Froneri, with Nestle expected to retain its 50% stake. At the same time, market leader, and the newly named The Magnum Ice Cream Company, is slated to complete its separation from Unilever with a primary listing on the Amsterdam stock exchange in mid-October. More than enough to keep sector analysts busy.
Why invest in ice cream?
On top of being seasonal, it is highly volatile with the out of home channel in Europe notoriously hard to forecast due to its weather dependency. It is also capital and energy intensive with the need to maintain temperatures below 18 degrees, from production, to transportation, to storage.
According to experts at research house Third Bridge, the category is seen as ‘having a very strong future.’ Whilst riding on the coattails of wider favourable snacking tailwinds, ice cream is regarded by many investors as an outperformer, as it increasingly broadens its appeal and accessibility away from the after dinner big tub format. This, it is believed, places the category favourably to take share from more traditional dry snacks.
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