Heatwave boosts Nestle sales

ZURICH – Blistering summer heat has boosted Nestle’s ice cream sales, the head of the group’s ice cream unit told Reuters, and it is hoping a low-fat version will earn it a bigger slice of the market.

“The market has been moving positively since June. We have seen significant growth for several months,” Jean-Marie Gurne, the head of Nestle’s ice cream unit, said in an interview.With temperatures above 30 degrees Celsius (86 F) in much of Europe and the United States this summer, tourists and locals alike flock to ice cream stands in search of refreshment.”Ice cream is a market which is quite volatile and weather conditions have a significant impact,” Gurne said.”It is clear (when looking at) the trend that 2006 should be a good year,” he said.”In 2006 the growth is going to be significant and in 2005 the growth was much smaller,” he said.He said poor weather in the first two weeks of August would weigh on sales but he could not yet assess the impact.Nestle, the world’s largest food company, is home to the Moevenpick and Dreyer’s brands and scoops up just under one fifth of the market.The unit outpaces that of rival Unilever, which makes Magnum, Cornetto and Ben & Jerry’s ice creams, and Gurne said Nestle was gaining market share.Nestle’s ice cream business accounts for around eight per cent of its annual group sales, or around 7 billion Swiss francs (US$5,69 billion).Gurne is confident he can top that level this year.In comparison, Unilever’s ice cream unit has annual sales of 5 billion euros.The ice cream and beverages unit reported a 5,3 per cent rise in first-half revenues.Nestle will publish first-half earnings figures on Wednesday.Nampa-AFPWe have seen significant growth for several months,” Jean-Marie Gurne, the head of Nestle’s ice cream unit, said in an interview.With temperatures above 30 degrees Celsius (86 F) in much of Europe and the United States this summer, tourists and locals alike flock to ice cream stands in search of refreshment.”Ice cream is a market which is quite volatile and weather conditions have a significant impact,” Gurne said.”It is clear (when looking at) the trend that 2006 should be a good year,” he said.”In 2006 the growth is going to be significant and in 2005 the growth was much smaller,” he said.He said poor weather in the first two weeks of August would weigh on sales but he could not yet assess the impact.Nestle, the world’s largest food company, is home to the Moevenpick and Dreyer’s brands and scoops up just under one fifth of the market.The unit outpaces that of rival Unilever, which makes Magnum, Cornetto and Ben & Jerry’s ice creams, and Gurne said Nestle was gaining market share.Nestle’s ice cream business accounts for around eight per cent of its annual group sales, or around 7 billion Swiss francs (US$5,69 billion).Gurne is confident he can top that level this year.In comparison, Unilever’s ice cream unit has annual sales of 5 billion euros.The ice cream and beverages unit reported a 5,3 per cent rise in first-half revenues.Nestle will publish first-half earnings figures on Wednesday.Nampa-AFP