It is one of the best-known brands in the world. Founded in 1978 in Vermont (United States), by two friends and ice cream lovers, Ben Cohen and Jerry Greenfield, it is famous for its innovative flavors but also for its strong commitment to social activism and justice, following the mentality of its creators. Now, however, that involvement is in question and may end up destroying the brand itself. None other than the one who gave birth to her says it, Cohen. And it is at the center of everything.
Right now, the firm operates under the Unilever conglomerate but maintains a board of directors that calls itself independent and maintains a mission that seeks to “use ice cream to change the world,” focusing on issues such as human rights and environmental sustainability. “Peace, love, & ice cream“, that is, “peace, love and ice cream”, is precisely its motto. But its co-founder has been denouncing for months that, in his opinion, this is only in theory and hence the danger, he tells the .
The comments came on the day Magnum Ice Cream Company (TMICC) began trading on the European stock market, separating from its owner Unilever. A Magnum spokesperson said the company wanted to build and strengthen Ben & Jerry’s “powerful, nonpartisan, values-based position” in the world.
Ben & Jerry’s was sold to Unilever in 2000 in a deal that allowed it to retain an independent board of directors and the right to make decisions about its social mission. Since the sale, clashes between the North American brand and Unilever have deepened, a conflict that has now been inherited by Magnum. In 2021, Ben & Jerry’s, stating that that business practice was “incompatible with its values.”
That step caused Unilever to sell its Israeli operation to a local counterpart and, last October, Ben Cohen reported that he was prevented from launching an ice cream that expressed “solidarity with Palestine”, flavored with watermelon, a fruit that symbolizes the cause of his people, because it contained the colors of the Palestinian flag. That on Israel’s part has been the final touchstone.
Jerry Greenfield, the firm’s other co-founder, announced last September that he was no longer on board, saying that the independence he once had in speaking out on social issues has been stifled by the parent company, Unilever. It is not, therefore, just a Cohen crusade. “For more than 20 years under its ownership, Ben & Jerry’s spoke out in support of peace, justice and human rights, not as abstract concepts, but in relation to real events occurring in our world,” he wrote in a letter.
“That independence existed in large part because of the unique merger agreement that Ben and I negotiated with Unilever, one that enshrined our social mission and values in the company’s governance structure in perpetuity. It is deeply disappointing to conclude that that independence, the basis of our sale to Unilever, is gone,” he said.
The last crisis
Last month, before its spinoff from Unilever, Magnum said Ben & Jerry’s Chairman Anuradha Mittal, who has held the position since 2018, “no longer meets the criteria to perform” that job, a conclusion it reached after reviewing the results of an internal audit. A Magnum spokesperson told the North American public broadcaster that it had found “a number of material deficiencies in financial controls, governance and other compliance policies, including conflicts of interest.” “So far, the trustees have not fully addressed the identified deficiencies,” they said.
In a statement to the agency, Mittal said: “The so-called audit of the foundation was a fabricated investigation, designed to try to discredit me. It is important to understand that this is not simply an attack on me as president. It is an attempt by Unilever to undermine the authority of the Board of Directors itself,” he emphasized.
Ben Cohen and Jerry Greenfield, of Ben & Jerry’s, after announcing that their ice creams were becoming 100% fair trade, pictured in London in 2010.
The danger: “frozen porridge”
Cohen now claims that Magnum “has no ability to determine who should be the chairman of the independent council.” “Therefore, in trying [cambiar el presidente de la junta directiva]I would say that Magnum is not suitable to own Ben & Jerry’s,” he adds.
The ice cream maker has repeatedly called for the business to be “owned by a group of investors who support the brand and want to promote the values” or for Magnum to do a “180 degree turn and say it supports the chairman of the independent board.”
Ben Cohen is still a Ben & Jerry’s employee and the brand’s most prominent spokesperson, which is why he uses his voice when he sees things that don’t add up. He has told the BBC that he fears that under current ownership the ice cream maker’s “loyal” fans would be lost forever. “If the company remains owned by Magnum, not only will the values be lost, but the essence of the brand will be lost,” he said.
Last Sunday, Magnum CEO Peter ter Kulve told the prestigious London business daily that the founders of Ben & Jerry’s were 70 years old and “at some point they need to pass the baton to a new generation.” Something that has made the two businessmen feel terrible. “It’s absurd,” Cohen replies. “It’s about values and honoring a legally binding agreement.”
“It will become just another piece of frozen porridge that will lose a lot of market share”
The businessman understands that Magnum investors were asked to pay a premium for the Ben & Jerry’s brand “because it has a lot of loyal fans.” “As they destroy the values of Ben and Jerry’s, they will destroy those fans and they will destroy that brand,” he said. “It will become just another piece of frozen porridge that will lose a lot of market share.”
A Magnum spokesperson said Ben & Jerry’s was “not for sale” and had “always respected” the brand’s commitment to continuing its “social mission.”
Following the spin-off of Unilever’s ice cream business, Magnum’s main shares opened at 12.20 euros, below the expected reference price of 12.80 euros set by Amsterdam’s EuroNext exchange. However, they rose 1.3% at the end of the day. The demerger means Magnum is now the largest independent ice cream business in the world.
