The scoop on Ben & Jerry’s ice cream
- Ben & Jerry’s co-founders want to sever ties with TMICC ownership
- TMICC is Unilever’s soon-to-be-demerger ice cream business, led by Peter ter Kulve
- Founders accuse Unilever of censorship on social justice and war issues
- Ben & Jerry’s seeks independence to protect its social mission and voice
- TMICC insists brand is profitable, integrated and not currently for sale
Unilever’s soon-to-be-demerged ice cream business was preparing to pitch to potential investors at its Capital Markets Day – under its new name: The Magnum Ice Cream Company (TMICC).
As CEO Peter ter Kulve took to the stage, Ben & Jerry’s made its own move. Via an open letter to TMICC board members, the brands’ co-founders announced they want to sever ties. After 25 years of ownership, Ben & Jerry’s wants out.
Unilever again accused of shushing Ben & Jerry’s
There’s a cultural clash at play. “We feel compelled to speak out,” writes Ben & Jerry’s co-founders Ben Cohen & Jerry Greenfield.
“For years now, the voice of Ben & Jerry’s has been silenced by Unilever, particularly when the brand has tried to speak out about social justice and unjust wars.”
The two businesses have a long history of disagreements. Ben & Jerry’s has repeatedly accused Unilever of shushing its support of peace in Gaza, and from blocking its endorsement of US college campus protesters.
Ben & Jerry’s also sued Unilever over the sale of its intellectual property rights in Israel to a distributor. Although they reached a settlement, their frosty relationship remained unresolved.
More recently, Ben & Jerry’s launched another lawsuit against Unilever – this time around censorship. The brand had been planning to publish a statement, in which it mentioned “several social issues Ben & Jerry’s believed would be challenged during the Trump administration, including minimum wage, universal healthcare, abortion, and climate change”. Ben & Jerry’s claims it was muzzled. The lawsuit is ongoing.
The strength of Ben & Jerry’s lies in the authenticity of its values and its voice, say the founders. “Whether in opposing crimes against humanity, speaking out against white supremacy, supporting marriage equality, demanding climate justice, or insisting that businesses have responsibilities beyond profitability.”
Magnum Co tarnished with the same brush
Of course, it’s normal for the big boss to approve what communications go out and when.
The issue here is the way Ben & Jerry’s was acquired back in 2020. At the time, an acquisition agreement was inked guaranteeing Ben & Jerry’s autonomy – both in retaining an independent board and its “freedom to pursue its social mission”.
The co-founders suggest it was this “vital agreement” that got Ben & Jerry’s over the line. And now, Unilever’s being accused of not standing by its word.
But Unilever is not TMICC. And come mid-November, the latter is expected to completely demerge from its parent company to be listed in Amsterdam, London and New York. Unilever will retain a stake of just under 20%.
However, Ben & Jerry’s does not expect any change under TMICC ownership. The company is made up of existing Unilever employees, and headed up by ice cream chief Peter ter Kulve, who now takes the reins as CEO.
“Magnum may be a new company, but it retains the legacy, leadership and investment of Unilever’s ice cream business and the history of its actions against Ben & Jerry’s,” write the co-founders.
And so, just as TMICC is splitting off from Unilever, Ben & Jerry’s wants to split off from TMICC. The co-founders are urging the board to be decoupled, so it can operate as an “independently owned company, supported by socially-aligned investors and free to honor its mission without compromise”.
Ben & Jerry’s is not for sale (and it’s doing ‘phenomenally well’)
TMICC was quick to react. “We remain committed to Ben & Jerry’s unique three-part mission – product, economic and social – and look forward to building on its success as an iconic, much-loved business,” noted the company in a statement.
From TMICC’s perspective, the Ben & Jerry’s brand has been performing well under Unilever leadership, and it doesn’t expect that to change once TMICC demerges.
“Ben & Jerry’s is doing phenomenally well,” ter Kulve told potential investors yesterday. “We grew the business by a factor six from a business that was hardly profitable. It’s now a very profitable business.”
He acknowledges he hasn’t always seen eye-to-eye with co-founders Cohen and Greenfield. “You don’t always want to agree with them, but you always want to hug them. They’re really good people.”
He reiterated that Ben & Jerry’s is “fully integrated” in Unilever and TMICC. “It’s a proud part of our portfolio and we know how to operate it. Its factories, its sales, its marketing, and we do so with big success.”
The final word from TMICC on this? “The business is not for sale.”
Flora Southey
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