Tip Top's next master would be taking on one of New Zealand's strongest brands - and that master is likely to come from abroad, according to an advertising expert. / Video by Dean Purcell
Tip Top's next master would be taking on one of New Zealand's strongest brands - and that master is likely to come from abroad, according to an advertising expert.
Veteran ad man Mike Hutcheson told the Herald today Tip Top ownership looked likely to go overseas.
"It will be someonewith deep pockets, and those deep pockets will most likely be international," Hutcheson said.
By 1962, the company's Mt Wellington plant had become the Southern Hemisphere's biggest icecream factory.
Two years later, Tip Top had expanded and a parent company - General Foods - was formed.
The company went to Goodman Fielder in 1987, Heinz in 1992, West Australia's Peters and Brownes in 1997, Kiwi Dairy Co in 2000 and to Fonterra, in 2001.
In its various incarnations, the company has sometimes struggled to perform.
"As they have had this revolving door of ownership over time, I think they have lost their way a bit in terms of what the brand is about," Hutcheson said.
"One of the problems is that an iconic brand like that gets under the fiefdom various public companies," he said.
"The imperatives for public companies are driven by accounting principles rather than marketing principles," he said.
"Costs are cut, things are shaved, and the brand does not get the love and attention that it deserves," he said.
"It's such a ubiquitous brand now and the quality of the product seems pretty good, so there is no reason why it should not perform well," he said.
"There is no reason why it should not perform, and I guess that's why Fonterra is looking to quit because it's such a good cash cow."
Fonterra Brands is the largest player in New Zealand's icecream and frozen desserts industry, holding a 53 per cent share of retail value sales, according to a report released by Euromonitor International last year.
Summer is an important time of the year for the brand, with 60 per cent of all of sales made throughout December, January and February.
Chocolate Trumpets, closely followed by Choco Bars and then Boysenberry Trumpets, are Kiwis' individual ice lollies of choice, according to Tip Top.
Eating an icecream during the summer months is a Kiwi tradition. Photo / File
Premium icecream brand Häagen-Dazs is the newest entrant to New Zealand's icecream industry and is set to take on Swiss rival Mövenpick.
Häagen-Dazs launched in New Zealand last year and Fellow US icecream brand Ben & Jerry's launched in New Zealand two years ago.
The company has also faced increased competition from a number of local players, who have entered the market with premium or dairy-free alternatives to the Tip Top range.
