Premium pudding supplier Gü has axed its frozen desserts range as predicted by The Grocer ('Future of Gü's frozen puds range hanging in the balance', p53, 8 December 2007).

It is the first major setback for a company that in a little under five years has become one of the UK's fastest-growing brands. Last year sales doubled to £24m.

In 2006, Gü branched out from the chilled category and started selling ice cream, following it up with Bombe au Chocolat, a frozen dark chocolate mousse and sponge, in May 2007.

However, in a market dominated by big promotions, Gü has struggled to make an impact on competition backed by considerably larger marketing budgets, and sales failed to live up to expectations.

Gü's current marketing budget is £2.5m - but that is spread across all its dessert brands, including its Frü fruit-based products.

Gü founder and MD James Averdieck launched a review of the company's frozen foods business last November, after it became clear it was struggling against the likes of Häagen-Dazs and Ben & Jerry's.

Averdieck, a former management consultant and marketer, said this week: "As a business we want to exert our energies into areas where we get the best results. The frozen food business took up a lot of resources and it was a very difficult area in which to operate. Despite winning a lot of frozen awards and having a small but loyal band of supporters, we were not seeing amazing sales.

"Customers do not shop freezer cabinets in the same way as chilled and are much less likely to buy a product on impulse. That did not suit our brands."

In an official statement the company said: "In 2008 we will look to focus our attention on chilled and move away from frozen. We have identified various additional growth opportunities within this category and there will be plenty more innovation from us throughout the year."