Ice-cream producer Augusto left out in the cold by Algida

One of the largest ice cream producers, Augusto, has declared bankruptcy. According to market analysts, central to Augusto's insolvency was the fact that the company failed to merge with its competitor, Szczecin-based Ekko, which also went bankrupt a couple of months ago. "Both companies had serious financial problems. They invested money into increasing production capabilities without paying attention to a constant fall in demand and increasing competition. Had they joined forces and carried out rapid restructuring, they would have stood a chance of survival," said an industry insider. At the beginning of 2001, Augusto controlled almost 10% of the market, with Ekko holding 7%. One of the companies to benefit most from these bankruptcies is ice-cream producer Algida, owned by Unilever. In 2001 the company acquired 25,000 freezers from the ailing Ekko and a couple of weeks ago decided to lease 12,500 refrigerators from Credit Lease, for which Augusto had failed to pay. "This is a crucial stage of consolidation of the market. The acquisition of the freezers leads to an increase in our distribution network. We have already noticed the effects of acquiring Ekko' s distribution facilities. At the end of this year's peak summer season, Algida recorded a 20% market share in the ice-cream sector," said Marcin Snopkowski, head of the ice-cream division at Unilever Polska. (Puls Biznesu, p. 11) A.K.