This summer, consumers should see greater choice and keener prices in the shops

Trade Secretary Stephen Byers

Birds Eye, part of the giant Unilever food conglomerate, said it made today's concessions to avoid "further turbulence in the market place".

Chairman Ian Ferguson added:
"We will continue with our high-level advertising campaign and also continue to work with all parts of the industry to achieve further development of this market."

Freezer wars

Trade and Industry Secretary Stephen Byres welcomed the move.

"As we reach the height of summer the ice cream market enters its busiest and most lucrative time of the year. This summer, thanks to undertakings obtained from Birds Eye Wall's, consumers should see greater choice and keener prices in the shops," he said.

He added that the company had "undertaken not to sell their impulse ice-cream direct to retailers and to distribute through independent wholesalers on non-exclusive and non-discriminatory terms."

Birds Eye has also had to concede that it would allow ice creams made by other manufacturers to be stocked in the freezers it supplies to shops.

Many retailers can only supply ice cream from one manufacturer. They had been given free freezers for ice cream on the condition that they did not stock rival products, a system small manufacturers said discriminated against them.

The agreement refers to the sale of ice lollies and choc-ices, not to soft or scoop ice cream.

Long-running battle

The UK government moved to end the stranglehold of Birds Eye Wall's, Nestle and Mars on the sale of ice cream in January after a Competition Commission report which found that outlet and freezer exclusivity restricts competition between manufacturers and retailers.

While it has put an end to Birds Eye Wall's freezer exclusivity agreements, Nestle and Mars were allowed continue with their freezer agreements, a condition Birds Eye said was unfair.

Birds Eye Wall's has two thirds of the market and Mars and Nestle freezer deals were seen as crucial to helping them compete.

Birds Eye had earlier warned that ending these agreements could lead to job cuts.

The company has previously denied trying to force rival freezers out of shops or giving incentives to retailers to abandon owning their own freezers.