
Unilever and Ben & Jerry's row set to intensify with new boss
Unilever has proposed Peter ter Kulve to head the Magnum Ice Cream Company, its soon-to-be spun-off ice cream division that will house Ben & Jerry's, Cornetto and Wall's.
The appointment is expected to be approved by Unilever's board in July before a planned listing this year. The FTSE 100 consumer goods group is set to have its primary listing in Amsterdam, with secondary listings in New York and London.
Ter Kulve's appointment could be seen as a lightning rod for tension. He is named in a lawsuit by Ben & Jerry's, which accused him of 'eye-popping' ignorance and of undermining the brand's longstanding commitment to political and social activism — a mission central to the Vermont-founded business since it was founded in 1978.
It marks the latest flashpoint in an increasingly bitter dispute. In March Ben & Jerry's accused Unilever of ousting its chief executive, David Stever, over his stance on social issues, claiming the decision was taken without the board's consent. The brand said Stever had been penalised for upholding its 'social mission'.
The rift dates back to 2021 when Ben & Jerry's announced it would no longer sell its products in the Israeli-occupied West Bank, stating the mode was incompatible with its values. That decision sparked a backlash, including pressure from pro-Israel investors, some of whom sold their Unilever shares.
Unilever subsequently sold the brand's Israeli business to a local licensee, a move that triggered a lawsuit from Ben & Jerry's, which was settled in 2022. But relations deteriorated again last November when Ben & Jerry's filed a new legal complaint, alleging that Unilever was violating the terms of the 2022 agreement by trying to suppress the brand's political messaging. The lawsuit claimed Unilever had issued repeated threats to staff, including Stever, in an effort to stifle the brand's advocacy, including its support for Palestinian refugees.
In a further escalation, Unilever threatened in April to halt the $5 million in annual funding that it provides to Ben & Jerry's non-profit organisation. The consumer goods group was said to have asked the Ben & Jerry's Foundation to agree to an expedited audit of its donations if it was to continue its funding of the non-profit organisation.
Ben Cohen, a co-founder of Ben & Jerry's, was reported this year to be exploring a potential bid to buy the ice cream brand back. Cohen founded the company with his childhood friend Jerry Greenfield in a petrol station in Vermont in 1978 and sold it to the FTSE 100 consumer goods group in 2000.
Ben & Jerry's was contacted for comment.
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