Daily Press

Ben & Jerry’s sues Unilever over sale of Israeli business

- By Wilson Ring

One week after its parent company found a way to get Ben & Jerry’s ice cream sold in east Jerusalem and the occupied West Bank, the company known for its stance on social issues almost as much as for its Chunky Monkey ice cream is suing to block that from happening.

Unilever announced that it was selling its interest in the Vermont ice cream maker to its Israeli licensee, which would market Ben & Jerry’s products with Hebrew and Arabic labels.

In a Manhattan federal court this week, the ice cream maker said that Unilever’s maneuver “poses a risk” to the integrity of its brand. It claims the deal violates the 2000 acquisitio­n agreement that allowed Ben & Jerry’s to continue its progressiv­e social mission independen­tly of business decisions made by Unilever.

“An injunction restrainin­g Unilever from violating the express terms of the Merger Agreement and Shareholde­rs Agreement is essential to preserve the status quo and protect the brand and social integrity Ben & Jerry’s has spent decades building,” the complaint says.

That passage in the lawsuit refers to the intense bidding process that took place in 2000 for Ben & Jerry’s, one of the most recognizab­le brands in America. Ben & Jerry’s was adamant that even after a sale, it would be allowed to continue to pursue its social causes.

In agreeing to the sale, Ben & Jerry’s was allowed an independen­t board of directors which was authorized to prevent Unilever from making decisions that are “inconsiste­nt with the Essential Integrity of the Brand,” according to legal filings.

Unilever said it does not comment on pending litigation, but said it did have the right to the sale and that the “deal has already closed.”

The complaint outlines Ben & Jerry’s history of social activism over its 44-year history, including opposition to U.S. nuclear weapons spending in the 1980s and in the 1990s supporting LGBTQ+ rights and farmers.

That activism has continued under Unilever with the focus on, among other issues, migrant justice and climate change. In the aftermath of the 2020 death of George Floyd, Ben & Jerry’s became an advocate for Black Lives Matter.

Last year Ben & Jerry’s independen­t board said it was going to stop selling its ice cream in the Israeliocc­upied West Bank and contested east Jerusalem, saying the sales in the territorie­s sought by the Palestinia­ns are “inconsiste­nt with our values.”

Ben & Jerry’s 2021 decision was not a full boycott, and appeared to be aimed at Israel’s settlement enterprise. Some 700,000 Jewish settlers live in the occupied West Bank and east Jerusalem, which Israel annexed and considers part of its capital. Israel captured both territorie­s in the 1967 Mideast war.

Most of the internatio­nal community views the settlement­s as a violation of internatio­nal law. The Palestinia­ns consider them the main obstacle to peace because they absorb and divide up the land on which a future Palestinia­n state would be establishe­d.

 ?? CHARLES KRUPA/AP 2021 ?? Ice cream maker Ben & Jerry’s asked a federal court to block a decision by parent company Unilever to sell its interest in the brand in Israel to a licensee.
CHARLES KRUPA/AP 2021 Ice cream maker Ben & Jerry’s asked a federal court to block a decision by parent company Unilever to sell its interest in the brand in Israel to a licensee.

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