Ben & Jerry’s brand could be destroyed, says co-founder

Company co-founder Ben Cohen told the BBC that Ben & Jerry’s would disappear as a brand if it remained with parent company Magnum.

His remarks are the latest in a long-running dispute between the ice cream brand and its parent company over its ability to express its social activism and the continued independence of its board.

This came on the same day that Magnum Ice Cream Company (TMICC) split from owner Unilever and began trading on the European stock exchange.

A spokesperson for Magnum said the firm wants to build and strengthen Ben & Jerry’s “strong, non-partisan, values-based position in the world.”

Ben & Jerry’s was sold to Unilever in 2000 in a deal that allowed it to have an independent board of directors and the right to make decisions related to its social mission.

Since the sale, there has been deepening conflict between the Vermont-based brand and Unilever, which has now been handed over to Magnum.

Ben & Jerry’s in 2021 Refused to sell its products in areas occupied by IsraelIt resulted in the Israeli operation being sold by Unilever to a local licensee, and in October Ben Cohen said he was blocked from launching an ice cream. “Solidarity with Palestine”.

Last month, ahead of his departure from Unilever, Magnum said Ben & Jerry’s executive chairman Anuradha Mittal, who had held the post since 2018, “no longer meets the criteria to serve”, saying it was the result of an internal audit.

A spokesman for Magnum said it found “a number of significant deficiencies in financial controls, governance and other compliance policies, including conflicts of interest.”

“So far, the board of trustees has not been able to fully address the identified deficiencies,” they said.

Ms Mittal told Reuters: “The so-called audit of the foundation was a manufactured investigation designed to try to discredit me.

“It is important to understand that this is not just an attack on me as chairman. It is an attempt to undermine the authority of Unilever’s Board of Directors.”

The BBC contacted Ben & Jerry’s to request this statement.

Mr. Cohen said Magnum “does not have the authority to determine who the independent chairman should be.”

“Therefore, by trying [change the chair of the board]”I would say Magnum is not a good fit to own Ben & Jerry’s,” he added.

Mr Cohen called for the business to either be “owned by a group of investors who support the brand and want to promote the values” or for Magnum to “turn 180 degrees and say they support the independent chairman”.

Ahead of Monday’s split, Reuters news agency reported that Ms Mittal had said she had no plans to leave the board.

Ben Cohen is an employee of Ben & Jerry’s and remains the brand’s highest-profile spokesperson.

He told the BBC he feared the ice cream maker would lose its “loyal” following altogether under its current ownership.

“If the company continues to be owned by Magnum, not only will the values ​​be lost, but the essence of the brand will also be lost,” he said.

Magnum CEO Peter ter Kulve said on Sunday: Financial Times Ben & Jerry’s founders were in their seventies and “at a certain moment they needed to hand it over to the next generation”.

Mr. Cohen’s co-founder, Jerry Greenfield, left the ice cream maker in September after working at the firm for almost half a century, citing concerns. about the suppression of its social mission.

“This is ridiculous,” Mr. Cohen said.

“It’s about values ​​and abiding by a legally binding agreement.”

Investors in Magnum were asked to pay a premium for the Ben & Jerry’s brand “because it has such a loyal following,” Mr. Cohen added.

“Just like they destroyed the values ​​of Ben and Jerry’s, they will destroy those followers and destroy that brand,” he said.

“It will become just another piece of frozen mush that will lose most of its market share.”

A spokesperson for Magnum said Ben & Jerry’s was “not for sale” and that it “always respected” the brand’s commitment to continuing its “social mission.”

The spin-off of Unilever’s ice cream business saw Magnum’s primary shares open at €12.20 (£10.66), below the expected reference price of €12.80 (£11.18) set by the EuroNext exchange in Amsterdam. However, it rose by 1.3% at the close.

The demerger means Magnum is now the world’s largest independent ice cream business.