Trade and industry secretary Stephen Byers has ensured that this year's ice cream season will start with a bang. The minister's decision to accept most of the recommendations contained in a weighty report from the competition authorities means massive changes are now under way; changes that will reshape forever the dynamics of the impulse market. Nothing reflects that more than the ruling by Byers that freezer exclusivity, as practised by Birds Eye Wall's, is against the public interest. The minister said: "I propose to prohibit agreements between Birds Eye Wall's and retailers which reserve more than 50% of display space in freezers for BEW products." That means from March 31 retailers will have more power to decide what products they stock in their Wall's branded freezers. And that is great news for the sector, according to Mars. Spokesman Philip Pettifor said: "Retailers should be better off because they will sell more. Sales from industry freezers are 35% to 40% higher than solus freezers from a single manufacturer." That argument is supported by smaller rival Frederick's Dairies ­ which produces Cadbury's ice cream ­ as well as retailers we contacted this week (see box). Morton Middleditch, md of Spar UK, said that for many independents space was at such a premium that installing two freezers was not practical. He described the decision made by the government as a common sense solution. "Having a broad range of ice cream products grows the category and that's got to be good news," he said. But it is interesting to note that retailers who felt particularly strongly about the restrictions of manufacturer units had already got round them by sourcing their own freezers. And Tony Pearce, sales director of Birds Eye Wall's, said this had always been the case. Wall's freezers were not foisted upon retailers, he insisted, they were supplied free on loan to those that wanted them. There is plenty of choice for those that don't. That's why Pearce is spitting mad at the decision by Byers to penalise only Wall's, while Mars and Nestlé can continue exclusivity deals because the minister says it will help them compete. Pearce's biggest headache is that the 80,000 units Wall's has in the market will be opened up to competitor brands just as the critical ice cream season gets under way. He reminded retailers that it was their choice what they stocked in the freezers while urging them to sell only the Wall's best sellers. "If people decide to put in other products, that's fine. I will argue with them as fellow business people, and with great clarity." So retailers should stand by for some fun. Pettifor of Mars said: "This is not a dust up between big manufacturers. It's genuinely a battle for the consumer." Nevertheless, the first battle ground will be over freezer space. For starters, small firms such as Frederick's Dairies ­ which has been struggling to gain distribution ­ now have a chance to persuade retailers to put their products in Wall's cabinets. And retailers can take advantage of the fact the big boys are about to blitz the market. Mars, for instance, is expanding its field force, producing new merchandising material for Wall's freezers, offering "great deals" to retailers via wholesalers and setting up a customer hotline. All to capitalise on the fact retailers will be able to stock its brands in Wall's freezers. At the same time, Wall's is promising to invest more than £35m this year in its ice cream business. Given the scale of changes that Birds Eye Wall's is being forced to make, it's hardly surprising that Pearce cannot reveal too much about his strategy for the coming season, except to say it will involve a "massive communications job". But the Byers' ruling means the strategy will involve a complete re-engineering of the way Wall's products are sold ­ no more year end bonuses for retailers ­ and the way they are distributed. Wall's rivals have long argued that it is only by ending freezer exclusivity, and by ensuring there is a strong, independent wholesale sector operating on the fairest possible terms, that competition can truly flourish in the impulse ice cream sector. Their wishes have all but come true. But Pearce's view is that the quality of service enjoyed by small store operators ­ particularly those dealing with the Wall's Direct delivery operation ­ could now be badly undermined. These arguments will rage on for weeks as Byers conducts his consultation with industry. In the meantime, retailers have a more pressing matter to decide: what they should do with their Wall's freezers. Because from April it's up to them. {{NEWS }}