Australian ice cream maker Dairy Bell has announced it is to fold, citing fierce competition in the sector.
In a statement on its website, Dairy Bell said after 44 years of ice cream production in Australia, it would be closing its two factories on 27 February. Its five stores will also be closed.
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“Supermarket ice cream wars have cost the retailer profit and the manufacturer loss of margin and have reduced our capacity to recover costs for some 4 years now with our capital being eroded year by year,” said the firm.
“Indications for the future are of continuing ingredient and labour rises making plant and machinery replacement and profit budgeting impossible. We do not wish to compromise our assets and therefore have decided that the timing is right and the opportunity is there for us to now develop our inner city real estate sites in Melbourne and Sydney.”
Dairy Bell said it was solvent and assured all its creditors would be paid in full following its decision to close.
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