In addition to being one of the top ice cream brands worldwide with a wide assortment of delicious and creative flavors, Ben & Jerry’s is also known for its progressive public stance on social matters, including human rights, the environment, and the economy.Â
As stated on the ice cream brand’s website, Ben & Jerry’s leads with progressive values across its business. By applying these values to its everyday business activities, it seeks to meet human needs and eliminate injustices in all communities.Â
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In 2000, Unilever, a UK-based multinational consumer goods manufacturer, acquired the Ben & Jerry’s brand for $326 million. At the time, both parties claimed this deal would help expand the brand and better meet consumer demands, benefiting the two companies’ businesses.
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However, this sweet and exciting acquisition has turned sour as the parent company and the ice cream maker seem to have very different views about how to run the business.Â
Ben & Jerry’s files a lawsuit against its parent company for firing its veteran CEOÂ
On Mar. 18, Ben & Jerry’s filed a lawsuit against its parent company, Unilever (UL) , with the U.S. District Court of the Southern District of New York, claiming that the company unlawfully fired its CEO, David Stever, for an ongoing dispute regarding the ice cream brand’s social mission and brand integrity.
According to the filing, Unilever violated its Merger Agreement, Settlement Agreement, and Settlement Amendment made in 2000, as it stipulates that the CEO may only be removed from their role after consulting and discussing the removal with an advisory committee of the company’s board.Â
In the lawsuit, Ben & Jerry’s claims, “Unilever has repeatedly failed to recognize and respect the Independent Board’s primary responsibility over Ben & Jerry’s Social Mission and Brand Integrity, including threatening Ben & Jerry’s personnel should the company speak out regarding issues that Unilever prefers to censor.”
The ice cream brand also states that the litigation has been initiated to protect its three-part mission “from Unilever’s unilateral erosion and to safeguard the company from Unilever’s repeated overreaches.”
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Stever has been with Ben & Jerry’s for nearly 37 years, starting as a tour guide in 1988, later serving as CMO for 12 of those years, and ultimately rising to the role of CEO in May 2023.Â
However, on Mar. 3 of this year, Unilever removed Stever as CEO for allegedly staying committed to Ben & Jerry’s social mission and brand integrity rather than due to issues in his laboral performance.Â
This recent lawsuit sparked from an initial lawsuit filed in November of last year, accusing Unilever of inappropriate muzzling as the parent company was allegedly censoring Ben & Jerry’s from speaking out on its political stands regarding the current Israeli-Palestine conflict.
In the filing, Ben & Jerry’s demands a trial by jury and seeks monetary restitution for attorney’s fees and costs and all other relief deemed appropriate by the court.Â
Ben & Jerry’s previous conflicts with Unilever regarding political stances
As controversial as these claims may sound, this is not the first time Ben & Jerry’s has tried suing its parent company, as they have had conflicts regarding similar issues in the past.
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In 2022, Ben & Jerry’s filed a lawsuit against Unilever for preventing it from halting ice cream sales in east Jerusalem and the Israeli-occupied West Bank since they claimed the continuing production would hurt the ice cream maker’s social mission, causing harm to its reputation. Ultimately, a federal judge rejected the request.
A Unilever spokesperson replied to The Street’s request for comment regarding the Mar. 18 lawsuit with the following:Â
“In line with the terms of the acquisition agreement, decisions on the appointment, compensation and removal of the Ben & Jerry’s CEO will be made by Unilever after good faith consultation and discussion with the B&J’s Independent Board. Regrettably, despite repeated attempts to engage the Board and follow the correct process, we are disappointed that the confidentiality of an employee career conversation has been made public. We hope that the B&J Independent Board will engage as per the original, agreed process.”
Ben & Jerry’s didn’t immediately respond to The Street’s request for comment.
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