Ben & Jerry’s says Unilever froze its pay in Israel ice-cream row

UNILEVER has frozen the pay of Ben & Jerry’s board members, the ice-cream brand has claimed, amid a row over the sale of its Israeli business.

Ben & Jerry’s, which is suing its owner in the US, claimed the move was an attempt to put pressure on directors ahead of talks, according to Reuters.

It is the latest salvo in the legal battle between the pair as Ben & Jerry’s tries to prevent the sale of its business in Israel to local licensee Avi Zinger.

Ben & Jerry’s last year announced it would stop selling products in the occupied West Bank because it was “inconsistent” with its values.

But Unilever, which has owned the maker of Cookie Dough and Phish Food ice cream since 2000, said the sale to Mr Zinger would make the brand available to all consumers in Israel and the occupied West Bank. It prompted Ben & Jerry’s to sue its parent in a New York federal court, claiming that the sale is “inconsistent” with its values.

Under an unusual structure agreed during the 2000 takeover, the company is fully owned by Unilever but retains an independent board that can make decisions to “protect and defend Ben & Jerry’s brand equity and integrity”.

Anuradha Mittal, chairman of the Ben & Jerry’s board, yesterday said it is suing Unilever because the terms of that agreement had been breached. A hearing on Ben & Jerry’s request to block the sale is set for Aug 8.

Members of the five-strong board said in a statement that the pay freeze was a “pressure tactic prior to a mediation that took place last week”.

A Unilever spokesman said: “Unilever reserved primary responsibility for financial and operational decisions and, therefore, has the right to enter this arrangement with Avi Zinger.”