EUROPE'S largest own-label ice cream manufacturer has announced its second major deal in less than a week.

R&R Ice Cream, which last week agreed to buy German rival Durigon Gelato for an undisclosed sum, today announced a deal with Kraft Foods.

The deal will see the North Yorkshire firm produce ice cream versions of Kraft products including Milka, Toblerone, Daim, Oreo and Philadelphia across ten European markets.

James Lambert, chief executive of the Leeming Bar firm, said: "We believe this venture could achieve additional sales of some 100 million euros for Kraft branded products within five years.

"It gives us a world-leading food brand across much of western Europe and further enhances our reputation as a one-stop shop for both branded and own label ice cream products.

"I fully expect the Kraft deal to transform the European business in much the same way as the 2001 acquisition of the Nestle Ice Cream business changed our UK operations."

Last weeks deal for Durigon Gelato, subject to clearance from German competition authorities, is the latest in a line of European acquisitions by R&R, which three months ago bought out its second French rival in little over a year.

In September, the Leeming Bar company, named the UK's fastest growing firm by The Sunday Times, acquired Pilpa, a leading supplier of own-label ice cream to French supermarkets, from Maison Boncolac in a 27m euro deal.

It followed its purchase of family-owned Rolland, France's third largest ice cream company, last year.