A SWEET deal has saved the iconic Dairy Bell ice cream name from extinction.

Gelati maker Bon Appetit Australia has bought the brand, recipes and five Melbourne shops for an undisclosed sum.

Dairy Bell was due to close its doors after 45 years for the last time tomorrow.

But Lou Da Mozzo, managing director of Bon Appetit, said a “handshake deal” secured the brand’s future.

“The deal was done to keep the brand going — it definitely wasn’t the highest price,” he said.

Dairy Bell products will be made at Bon Appetit’s Reservoir factory and sold to IGA, independent supermarkets, and through its retail stores.

Mr Da Mozzo said workers from Dairy Bell’s defunct East Malvern plant could apply for jobs at the Reservoir factory.

Dairy Bell last month announced it would close, blaming the supermarket ice cream wars eroding profits and weekend penalty rates making its retail outlets run at a loss.

Dairy Bell owner and co-founder Andrew Razums was happy the name and flavours would now live on.

“It was time for us to call it a day. We have made a deal and given them an opportunity to use our formulas and flavours,” Mr Razums, 79, said.

“We have handed over the recipes, so it will be the same taste.”

Dairy Bell sold its East Malvern manufacturing plant employing 50 to 60 staff to apartment developer Little Projects, which is backed by Essendon chairman Paul Little.

Its East Malvern shop will shift from the old manufacturing site to nearby Chadstone Rd.

Other Dairy Bell outlets will also remain open and also start selling Bon Appetit gelati.

Dairy Bell-branded ice cream will be available at independent retailers, but the company will abandon production of home brand-label ice cream for the major supermarkets.