Vermont-based ice cream manufacturer Ben & Jerry’s, an independent subsidiary of Unilever plc UL, has a long history of corporate activism. Its latest round has brought it into conflict with its own parent company.
What Happened: On Wednesday, Ben & Jerry’s filed a contract lawsuit against Unilever in the Southern District of New York. The federal lawsuit alleges that Unilever breached Ben & Jerry’s autonomy over social justice activism, specifically its various statements in support of a cease-fire between the Israeli government and Hamas in the ongoing war. Ben & Jerry’s and Unilever hold agreements to allow the brand's independent board to make social justice activism decisions.
Unilever has not yet filed a response, but a spokesperson reacted to Ben & Jerry’s lawsuit in an email to Benzinga.
“Our heart goes out to all victims of the tragic events in the Middle East,” the spokesperson said. “We reject the claims made by B&J's social mission board, and we will defend our case very strongly. We would not comment further on this legal matter."
The Burlington-based company’s complaint alleges that Unilever “silenced” efforts to speak out in support of Palestine. Following Ben & Jerry’s statement in 2023 in support of an Israel-Palestinian cease-fire, the London, England-based parent company allegedly threatened to dissolve its independent board and sue board members.
In addition, Unilever blocked Ben & Jerry’s donations to Jewish Voice for Peace and the Council on American-Islamic Relations, two organizations in support of Palestinians, the ice cream brand alleges.
Ben & Jerry’s previously sued Unilever in 2022. The ice cream manufacturer had announced a cessation of sales in the occupied West Bank and East Jerusalem in protest of Israeli policy. Unilever subsequently sold Ben & Jerry’s Israel license, something Ben & Jerry’s said was done without permission.
Why It Matters: It is considered rare for a subsidiary to file a lawsuit against its own parent company.
According to the Wall Street Journal, Unilever has considered selling off its ice cream brands, including Ben & Jerry’s, Breyer’s and Popsicle. Unilever acquired Ben & Jerry’s in 2000.
Also Read:
Photo via Shutterstock.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.