The row between Unilever and Ben & Jerry’s has escalated further after the parent company threatened to halt funding to the ice cream brand’s non-profit organisation.
The FTSE 100 company has reportedly asked the Ben & Jerry’s Foundation to agree to an expedited audit of its donations if it is to continue its funding of the non-profit organisation.
The Ben & Jerry’s Foundation is an organisation that donates to a variety of social justice groups. It receives about $5 million in annual funding from Unilever which is calculated by a formula based on sales of Ben & Jerry’s ice cream.
• Ben & Jerry’s founder sparks cold war to wrest back the brand from Unilever
Sources told Reuters that Unilever is threatening to halt the funding after Ben & Jerry’s independent board opened a lawsuit against its parent company in November over claims that the multinational has silenced the ice cream brand’s attempts to express support for Palestinian refugees.
This month Ben Cohen, 74, a co-founder of Ben & Jerry’s, was reported to be exploring a potential bid to buy the ice cream brand back. It comes as Unilever prepares to spin off its ice cream business, named the Magnum Ice Cream Company, later this year. The business is set to have its primary listing in Amsterdam, with secondary listings in New York and London.
The Ben & Jerry’s Foundation has supported and given grants to a range of social justice organisations including Migrant Justice, which advocates for fair treatment and access to justice for migrant workers, the Felony Murder Elimination Project, a non-profit group that tries to reduce sentencing for inmates, and Adelante Student Voices, an organisation that works to support undocumented students.
It marks the latest chapter in the growing animosity between the two businesses over Ben & Jerry’s continued political activism. Last month the ice cream brand claimed David Stever, its chief executive, had been removed by Unilever because of his commitment to the company’s “social mission”. In a legal complaint, it accused its parent company of dismissing Stever without consulting its board because of his actions in relation to the brand’s social concerns.
• Ben & Jerry’s sues Unilever and claims it was silenced over Gaza
Divisions first emerged between the two companies in 2021 after Ben & Jerry’s announced it would stop selling its products in the West Bank on the grounds that it was inconsistent with its values. The move resulted in some investors divesting their Unilever shares.
Ben & Jerry’s then went on to sue Unilever for selling its business in Israel to a licensee in the country. This was settled in 2022.
The new lawsuit opened in November 2024 with Ben & Jerry’s claiming that Unilever violated the terms of the 2022 agreement by trying to silence its “social mission”. It said: “Unilever has repeatedly threatened Ben & Jerry’s personnel, including chief executive David Stever, should they fail to comply with Unilever’s efforts to silence the social mission.”
Unilever, Ben & Jerry’s and the Ben & Jerry’s Foundation were contacted for comment.
