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Diving overview:
- Ben & Jerry’s filed the lawsuit against parent company Unilever last week, according to court documents. It was claimed that the consumer goods giant had silenced several attempts by the ice cream maker to advocate for Palestinians affected by the war in Gaza and support a ceasefire. .
- A November 13 report said that in one case, Unilever threatened to “disband” its independent board and sue its board members if the company issued a statement calling for “peace and a permanent and immediate ceasefire” in the region. The complaint was filed in New York federal court. The lawsuit also claims that Peter ter Kulve, president of Unilever’s ice cream division, and Jeff Eglash, head of global litigation, threatened Ben & Jerry’s employees with “professional retaliation” if the company issued a statement defending the ceasefire.
- Unilever said it “offers our condolences to all victims of the tragic events in the Middle East” and that it rejects the claims made by Ben & Jerry’s Social Mission Committee, according to emailed comments sent to ESG Dive on Tuesday. A company spokesperson added: “We will defend our case very vigorously.”
Dive Insights:
Ben & Jerry’s claimed that in addition to Unilever suppressing statements calling for a ceasefire in Gaza, the ice cream maker also censored public statements it attempted to make in support of those opposing the war on college campuses across the country. The ice cream maker said the statement guaranteed the First Amendment rights of protesters and was consistent with the company’s “long history of supporting such discourse,” but the release was banned by Eglash, according to the lawsuit.
The lawsuit also alleges that Unilever and Ben & Jerry’s are working with the Jewish Voice for Peace, an organization seeking to collect and disburse humanitarian aid to Palestinians affected by the war in Gaza, and the Council on American-Islamic Relations. It is claimed that donations to the association have been blocked. The complaint said Unilever had publicly donated 500,000 euros ($528,670) to the Israeli Emergency Medical Services and Blood Bank, which plays an auxiliary role, although Unilever claimed its reason for blocking donations was to maintain a “neutral” stance on the conflict. . Serves in the Israel Defense Forces.
The Vermont-based ice cream maker said the move was a breach of its contract with Unilever because it repeatedly interfered with Ben & Jerry’s social mission and brand integrity and attempted to undermine the authority of its independent board.
“Unilever has consistently failed to recognize and respect the independent board’s primary responsibility for Ben & Jerry’s social mission and brand integrity, including when the company speaks out on issues that Unilever prefers to censor,” the lawsuit states. This included threatening Ann Jerry employees,” the lawsuit said.
At Ben & Jerry’s, “Bipartisan Social Mission “It strives to meet human needs and eliminate injustice in local, national and international communities,” its website states. The company issued a public statement in 2020 denouncing “inhumane police brutality.” inflicted on George Floyd And he urged the Justice Department to restore policies like consent decrees aimed at curbing police abuse that were rolled back under President Donald Trump’s administration.
When Unilever acquired Ben & Jerry’s in 2000, the two companies agreed that the ice cream maker’s independent board would be free to pursue its social mission, but that the London-based consumer goods company would have the final say on financial and operational matters. . At the time, Ben & Jerry’s announced that it had signed an acquisition agreement. ‘Unique’ and ‘unprecedented’ This is because the company was able to establish a governance structure that solidifies its position as a ‘value-driven company.’
This is not the first time tensions have risen between Ben & Jerry’s and Unilever over Israel-Palestine.
ice cream maker sued parent company in 2022 Unilever is accused of violating the merger agreement when it sold Ben & Jerry’s Israeli operations to a licensee who would sell its products in the Israeli-occupied West Bank, a decision that went against the wishes of Ben & Jerry’s independent board of directors.
