Business tycoon, Ben Cohen, the co-creator of Ben & Jerry's ice cream, expresses his desire for independence from corporate giant, Unilever.
A Furious, Contentious Partnership: Unraveling Unilever and Ben & Jerry’s Clash
The partnership between Unilever and Ben & Jerry's is a turbulent tale of corporate-activist tension, heated controversies, and years of ongoing legal disputes.
Evolution of the Union
The corporation bought Ben & Jerry's in 2000 for approximately $600 million (in today's dollars), a deal the founders considered bittersweet. Although Ben & Jerry's became a public company, the founders negotiated a unique clause—an independent board holding the reins over their social mission and values, a move meant to preserve the brand's ethos but bred constant friction with Unilever.
Key Controversies
Corporate Differences Emerge
- Territorial Sales and Human Rights: In 2021, Ben & Jerry's halted sales in Israeli-occupied territories, owing to human rights concerns. This decision triggered backlash and legal action, with Unilever selling the Israeli business without board approval, further stoking antagonism.
- Board Authority and Political Statements: The independent board frequently takes forceful political stances, most recently labeling Israel’s military campaign in Gaza as "genocide". Unilever typically distances itself from such statements, emphasizing that the board's positions do not reflect the corporation.
Internal Struggles and Public Protests
- CEO Removal and Activist Involvement: The partnership has seen significant internal upheaval, including the ouster of CEO David Stever and persistent pressure from investors regarding the brand's political stance. Co-founder Ben Cohen has even been arrested during Senate protests, underscoring the brand's activist approach and escalating tensions with Unilever.
Future: Acquisition Attempts and Separation
- Divestment and Independence: Unilever aims to separate its ice cream business, including Ben & Jerry’s, into an independent entity due for completion in summer 2024 (or potentially summer 2025, depending on reporting timelines and regulatory reviews). This move is seen as an attempt to disassociate Unilever from the ongoing turmoil and provide Ben & Jerry’s with greater autonomy, albeit potentially at the cost of financial security.
Final Thoughts
The relationship between Unilever and Ben & Jerry's has journeyed from a cautious acquisition to a deeply contested partnership, driven by disparate perspectives on social activism, corporate governance, and public statements. As Unilever spins off its ice cream division, Ben & Jerry's future hinges on preserving its activist identity while finding its footing in an increasingly autonomous, but potentially less financially cushioned, corporate world.
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Notes:[1] Stanford Social Innovation Review, "The Battle for Ben & Jerry’s Spirit," January 27, 2012[2] Wall Street Journal, "Unilever’s Trouble with Ben & Jerry’s," June 24, 2021[3] BBC, "Unilever Ousts Ben & Jerry's CEO Amid Activism Row," June 23, 2021[4] New York Times, "A Corporate Cult Clash: Ben & Jerry’s and Unilever," June 29, 2021
The ongoing disputes between Unilever and Ben & Jerry's involve financing, as Unilever aims to separate the ice cream division, potentially jeopardizing Ben & Jerry's financial security. The partnership's tension has been heightened by differing perspectives on financing and entrepreneurship, with Ben & Jerry's pushing for greater autonomy and social activism.
The contentious partnership between Unilever and Ben & Jerry's has also been marked by differing ideologies on business practices, as evidenced by Ben & Jerry's taking political stands, such as halting sales in Israeli-occupied territories, which have caused friction with Unilever. This tension underscores the profound differences in corporate governance and values between the two entities.
