MILAN (Reuters) – Italian food company Barilla and Unilever (NYSE:)’s brand Algida have signed a strategic partnership to sell ice cream and snacks in Italy, the two groups said on Tuesday.

Barilla’s Gocciole biscuits, which are Italy’s best-selling snack brand, stated that the alliance would boost demand, especially during the summer season.

This partnership will allow the group to be more competitive in sales of sweet and salty snack products in out-of-home channels. It competes against major foreign companies like Ferrero and large chocolate confectioner Ferrero.

Francesco Del Porto, Barilla’s head of Italy Region said that “we are confident that the Italian ice cream market has interesting prospects” and that there are brands and products that appeal to this consumer.

We also want to expand our presence in the outside-of-home market, thanks to Unilever Group’s long-standing experience and extensive distribution network.

Algida and Barilla have collaborated to develop Ice Creams. This will be built on the successes of Algida’s cereal bars and chocolate spread cookies.

Both groups stated that the partnership would be in place from January 2022. Initial coverage will include Italy. However, it is hoped to extend the agreement to other European nations.

Unilever views the deal as an opportunity for them to develop new products in a market that has become increasingly competitive.

Unilever formed an alliance similar to that of Ferrero in 2017 which helped the confectioner expand its reach into the frozen sweets sector, both here and overseas.