Eskimo Ice save over £480k

Industry: Manufacturing

Location: West Sussex


Eskimo Ice / Ice Club has been manufacturing and distributing packaged ice across the UK and Europe for over 40 years. Having secured rates not long after the energy crisis, Ice Club were keen to ensure they were employing the most appropriate risk management strategy to maximise profitability of the business going forward. Given the nature of their business (ice production), demand is highly dependent on the weather and therefore energy consumption forecasting is challenging. As such, if the correct contract terms are not in place, there is a risk of breaching supplier Take or Pay clauses. As a forward thinking business, they were also keen to become more sustainable, and procuring renewable energy at a premium was acceptable, subject to the level of the premium.


Eskimo Ice / Ice Club

The client was interested in purchasing energy in a more flexible manner but they were also keen to create medium term budget stability.

Mindful Energy spent a lot of time with the Leadership Team to understand the business drivers, pressures and objectives while providing information on the supply contract products available. This enabled Mindful Energy to better understand the requirements and put in place the most appropriate strategy.

The Results

Mindful Energy ran a fixed price reverse auction (what is a fixed price auction?) to provide an accurate renewal budget to assess the clients appetite. 9 suppliers participated bidding 24 times during a live and time constrained auction. The bidding and rebidding encouraged supplier margin erosion, resulting in offers delivering savings of over 35% /£484k.

Despite the potential additional rewards of purchasing more flexibly over a longer term, the risk/reward ratio wasn’t attractive enough enough, so the client fixed their renewal, delivering an estimated annual saving of c£484k.

Additionally, Mindful Energy was able to negotiate 60/140% volume tolerance (VT) threshold with the winning supplier, massively reducing the Take or Pay risk exposure.

Last but not least, the winning suppliers’ offer included 100% auditable renewable energy (REGO) at a reduced premium, helping Ice Club meet their sustainability objectives.


The client was extremely happy with the results of this auction. A significant saving, 100% renewable energy and wide VT  clause of 60/140% enabled Eskimo Ice to meet all of their pre tender objectives. We are proud to have supported them on this process.


"We’ve worked with Ian for several years, previously at another company and now with Mindful Energy. We appreciate his industry insight, like his account management style and enjoy the collaborative working relationship he adopts. Securing the right contract at the right time underpins our business and Mindful Energy play an important role in helping us meet our energy strategy goals and objectives." - Managing Director- (A named contact or references can be provided on request).

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