Ben & Jerry’s, the iconic ice cream brand known for its commitment to social causes, faces significant internal turmoil following recent developments with its parent company, Magnum. Even after Unilever acquired Ben & Jerry’s in 2000, the company has maintained a separate board. This board continuously and deliberately drives the decision-making of the firm to fulfill its social mission. Yet lately, those tensions have flared, sparking fears that the company’s original spirit and principles may be deeply compromised.
In July 2021, Ben & Jerry’s became a household name when it announced that it would stop selling its ice cream in Israeli-occupied territories. This made Unilever’s continued ownership of the Israeli operations untenable, resulting in Unilever’s decision to divest its Israeli operations to a local licensee. Recently, pro-peace activist and co-founder of Ben & Jerry’s Ice Cream, Ben Cohen expressed his disappointment. He told of how the brand was unable to release an ice cream flavor in support of Palestine. Cohen’s remarks point to the deep-seated struggle within the company to balance the brand’s social mission with corporate priorities.
Jerry Greenfield, the co-founder of Ben & Jerry’s, announced his departure from the company in September. He, like so many others, had spent more than twenty years establishing the brand. His departure came out of worries over the apparent squelching of the brand’s social mission — long a part of its identity — by the brand’s recent management. Cohen has remained a principal employee and public face of the brand ever since. He was honest about his fears for its future given Magnum’s ownership now.
Magnum, which is now the world’s biggest standalone ice cream company, got Ben & Jerry’s from Unilever. The relationship has turned into an adversarial one. Ben & Jerry’s long-running battle with Magnum is on the side of operational autonomy and a commitment to social justice issues. Anuradha Mittal has been at the helm of Ben & Jerry’s board as chair since 2018. Earlier this month, Magnum came under fire for that position, with critics saying that she “no longer qualifies to serve” as chair following an internal audit.
Cohen has been vocal about his concerns regarding Mittal’s removal, stating that such actions indicate Magnum’s unsuitability to own Ben & Jerry’s. Most importantly, he echoed the need to stay true to the brand’s core values. He cautioned that the brand would be most at-risk without a supportive ownership group.
“Therefore, by trying to change the chair of the board, I would say that Magnum is not fit to own Ben & Jerry’s.” – Ben Cohen
Cohen went on to explain what could happen if Magnum continues to control Urban’s estate. He warned that if Magnum persists in undermining the brand’s values, it risks diminishing both its market share and cultural significance.
“If the company continues to be owned by Magnum, not only will the values be lost, but the essence of the brand will be lost.” – Ben Cohen
The internal conflicts at Ben & Jerry’s raise critical questions about corporate governance and the responsibilities of large companies toward their subsidiary brands’ missions. Mittal condemned the internal audit as a “manufactured inquiry,” calculated to undermine her power as chair.
“It is important to understand that this is not simply an attack on me as chair. It is Unilever’s attempt to undermine the authority of the Board itself.” – Anuradha Mittal
Cohen called for a new look at ownership models. He suggested that either a consortium of investors who shared the brand’s ethos pre-eminently should take control, or that Magnum itself should re-orientnate its priorities and back the independent board.
“This is about values and abiding by a legally binding agreement.” – Ben Cohen
The future of Ben & Jerry’s now rests in a fragile equilibrium as the brand walks this tightrope. Cohen argues that the brand will die if it does not stay true to its roots and values.
“As they destroy Ben & Jerry’s values, they will destroy that following and they will destroy that brand. It’ll become just another piece of frozen mush that’s just going to lose a lot of market share.” – Ben Cohen