Market News

Coolbrands Signs Disney

Coolbrands International Inc. has made a deal with Disney Consumer Products, the licensing arm of Walt Disney Co., in the hopes that the latter's popular characters will yank the frozen treat maker out of a slump. Coolbrands, which posted a US$74 million annual loss recently, took a massive hit to its earnings with the loss of a Weight Watchers licensing agreement, along with the virtual collapse of its Atkins diet-branded products (and a $55.5 million goodwill impairment charge). In the quarter ended August 31, the company, whose products include Eskimo Pie, Breyers Yogurt and Yoplait Frozen Yogurt, lost $64 million. The Markham, Ont.-based firm will launch five new frozen novelty items, based on animated characters in the US market, in March. Among them will be Mickey Mouse, ice cream bars based on Finding Nemo and ice cream cones based on The Incredibles. Coolbrands' CEO David Stein has said that the company plans to focus on three brands: Godiva, Yoplait and Disney. Source: Canadian Grocer E-Newsletter, December 23, 2005.