The ice-cream maker, Wall's, has been referred to the Monopolies and Mergers Commission after a critical report from the Office of Fair Trading into its distribution network.

The report slammed Wall's use of exclusive wholesalers, called concessionaires, which are offered products and promotions unavailable to other companies.

The OFT concluded that the system hampered competition among ice-cream dealers and ran against the interest of the public.

A previous MMC inquiry into Birds Eye Wall's ended favourably for the company

The Director-General of Fair Trading, John Bridgeman, said: "Consumers lose out if Wall's distribution policy restricts the choice of ice creams in a shop, or makes it difficult for other manufacturers to enter or expand in the market."

The OFT said it had held confidential negotiations with Wall's over the issue, and while the company had made some concessions, this was not enough.

Wall's, which is part of the Unilever group, said it welcomed the MMC review of wholesaling but rejected the OFT's assertions that its new plans did not address the problem adequately.

Birds Eye Wall's was the subject of a previous MMC inquiry into its use in shops of exclusive ice-cream freezers, donated free to shops. The commission found in that case that the freezers were not against the public interest.

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