Ben & Jerry’s has filed a modified complaint in Manhattan federal court against Unilever, alleging the company is hindering its advocacy for Palestinian refugees and threatening its independent board. The ice cream brand seeks court protection for its social mission and enforcement of a $25 million commitment from Unilever. Tensions escalated after Ben & Jerry’s stopped sales in the Israeli-occupied West Bank, leading to a settlement that Unilever allegedly has not honored. Unilever’s planned divestment of its ice cream division follows these disputes.
Legal Dispute Between Ben & Jerry’s and Unilever
A recent modified complaint has been filed in federal court in Manhattan, where Ben & Jerry’s has accused Unilever of suppressing its efforts to advocate for Palestinian refugees and to call for an end to military aid to Israel. The ice cream company claims that Unilever has threatened to dismantle its independent board of directors as part of this conflict.
Seeking Court Intervention for Social Mission
Ben & Jerry’s is requesting a court ruling to ensure that its board can continue overseeing its social mission and to mandate that Unilever fulfills its commitment of $25 million to organizations selected by the ice cream brand. Despite attempts to reach out, Unilever has not provided an immediate comment regarding these allegations.
The tension between the two entities began in 2021 when Ben & Jerry’s announced it would cease sales of certain flavors in the Israeli-occupied West Bank, citing a misalignment with its core values. This controversial decision prompted some investors to withdraw their support from Unilever, leading Ben & Jerry’s to take legal action against its parent company over the sale of its Israeli operations to a local licensee.
In 2022, a settlement was reached that required Unilever to respect the independent nature of Ben & Jerry’s board and uphold its social mission, including the promised $25 million payments. However, the modified complaint reveals deeper issues regarding the management of the brand.
According to the complaint, after Donald Trump’s election, Ben & Jerry’s management, aided by Unilever’s litigation head, drafted a message intended for release on inauguration day. This message was to address significant issues like abortion rights, climate change, and universal healthcare. However, just days before the inauguration, Unilever’s ice cream chief, Peter ter Kulve, allegedly prohibited the publication of this message due to its direct mention of Trump.
Ben & Jerry’s asserts that ter Kulve’s decision was based on personal intuition rather than the company’s longstanding history of challenging the Trump administration. They also highlight a meeting organized by ter Kulve, during which he discussed the influence of Nelson Peltz, a Unilever board member and Trump supporter, on the company’s public positioning.
The complaint emphasizes that, despite a legacy of progressive activism, ter Kulve deemed criticism of Trump too controversial for a brand that stands for “Peace, Love, and Ice Cream.” This reflects a broader trend where various sectors, including retail and finance, have scaled back support for initiatives perceived as socially impactful due to backlash from Trump and his supporters.
Founded in 1978 by Ben Cohen and Jerry Greenfield in a converted gas station, Ben & Jerry’s has upheld its social mission even after Unilever acquired the company in 2000. The modified complaint outlines plans for Ben & Jerry’s to allocate $5 million from Unilever to human rights advocacy and an additional $20 million over a decade to assist Palestinian almond farmers and a fair-trade almond supplier.
However, Unilever has opposed these payments, arguing that they would support “Palestinian human rights” and has failed to make the second installment of $2.5 million. Ben & Jerry’s claims that ter Kulve also resisted the $20 million payment due to his discontent with the 2022 agreement and a lack of familiarity with the almond supplier.
In a strategic move, Unilever plans to divest its ice cream business this year to streamline its product offerings and cut costs. The company’s diverse portfolio includes popular products such as Dove soap, Hellmann’s mayonnaise, Knorr bouillon cubes, Surf detergent, and Vaseline.