Ben & Jerry's Faces Brand Risks Amid Governance Clash with Magnum After Spin-off from Unilever
Ben Cohen has warned that Ben & Jerry's could be destroyed as a brand if it remains under Magnum Ice Cream Company (TMICC) amid ongoing governance and activism clashes with its parent company Unilever. In 2000, Ben & Jerry's was sold to Unilever with an independent board and the right to pursue its social mission, but tensions have continued into the Magnum era following the recent spin-off.
Magnum, which separated from Unilever and started trading on the European stock market, aims to bolster Ben & Jerry's values-based, non-partisan stance. However, ahead of the spin-off, Magnum stated that Ben & Jerry's chair Anuradha Mittal no longer met governance criteria after an internal audit. Mittal described the audit as manufactured to undermine the board. Cohen has stated that Magnum has no right to decide the independent board chair, calling for either investor ownership aligned with the brand or for Magnum to support the chair. He warns that without this, there will be a loss of values and loyal followers.
Jerry Greenfield, a co-founder, left Ben & Jerry's in September citing concerns about the stifling of the brand's social mission, underscoring ongoing governance tensions. In 2021, Ben & Jerry's refused to sell in Israeli-occupied territories, leading the Israeli operation to be sold to a local licensee. Cohen added that a Palestine-solidarity ice cream was blocked in October.
Magnum's chief executive Peter ter Kulve suggested that the original founders are aging and should hand over to a younger generation. Magnum insists that Ben & Jerry's is not for sale and will continue to respect the social mission.
Following the demerger, Magnum became the world's largest standalone ice cream business. Shares opened at €12.20, below the €12.80 reference price, and rose about 1.3% by close.
