Unilever Plc said Ben & Jerry’s is “not for sale” and will remain a key brand in the consumer goods group’s soon-to-be spun off ice cream division.
“The separation and listing of ice cream is the option that we consider maximizes shareholder value, that has not changed,” said Chief Executive Officer Fernando Fernandez on a media call.
From July 1, Unilever ice cream will be renamed the Magnum Ice Cream Company, in a nod to the division’s other well-known brand, and listed in the Netherlands as a separate entity.
Speculation about the future of Ben & Jerry’s has arisen after founders Ben Cohen and Jerry Greenfield expressed interest in buying back their namesake ice cream label, after years of tension between the brand and Unilever, according to a Bloomberg News report.
Founded in 1978, Ben & Jerry’s became popular with offbeat flavors like Cherry Garcia and Chubby Hubby and associated itself with progressive causes. When Unilever bought the company in 2000, an agreement established an independent board at Ben & Jerry’s to protect its social values.
However, the two have increasingly clashed over how Ben & Jerry’s communicates that social mission. In 2022, Ben & Jerry’s sued Unilever for blocking its attempts to stop selling ice cream in the occupied West Bank.
Earlier this week, Reuters reported that Unilever was threatening to halt funding to the Ben & Jerry’s Foundation, a US nonprofit that makes donations to social justice organizations. Unilever pays the foundation about $5 million annually, according to Fernandez, and it wants to know where money is being spent.
“We have not made any threat,” he said, but added that audits form part of proper governance.
“It is our responsibility to ensure that these funds are used properly,” he said. “It has to be allocated to areas or institutions that are absolutely in line with the ones that are part of the acquisition agreement.”
Unilever on Thursday reported that sales rose more than expected in the first quarter, mostly driven by higher prices as commodity costs surge.
