Canadian frozen desserts maker CoolBrands International has announced that its licence agreement with Weight Watchers International is to end on 28 September 2004.

The company said the termination of the deal came as a result of the inability of the two companies to agree on an extension of their existing licence pact on mutually agreeable terms.

CoolBrands said it has the right to continue to market Smart Ones frozen desserts using the Weight Watchers name on its packaging until 28 September 2005.

"Thereafter, the company intends to continue marketing its line of low fat and fat free "better for you" frozen desserts under an alternative brand licensing arrangement currently under discussion," CoolBrands said.

Separately, CoolBrands announced that as a result of the acquisition of Silhouette Brands by Dreyer's Grand Ice Cream, the CoolBrands manufacturing agreement for Skinny Cow frozen dessert products has automatically been extended to August 2011.

The agreement also provides CoolBrands with a first right of refusal to manufacture new Skinny Cow products.

In addition CoolBrands and Dreyer's have entered into discussions relating to further potential licensing and manufacturing relationships with respect to the Skinny Cow brand, as well as certain other Dreyer's brands.

Meanwhile, US family-owned dairy processor Wells' Dairy said it has entered into an agreement with Weight Watchers regarding the manufacture of frozen novelties and ice cream.

Under the licensing agreement, set to commence on 1 October 2004, Wells' Dairy will be the exclusive marketer, producer and distributor of the line of frozen novelties and ice cream under the Weight Watchers brand.