Ben & Jerry’s has initiated legal action against its parent firm, Unilever, alleging that the multinational corporation is suppressing the ice cream brand’s ability to express its support for Palestinians amid the ongoing conflict in Gaza.
The lawsuit, submitted on Wednesday in a federal court in New York, claims that Unilever is breaching its contractual commitments to Ben & Jerry’s by making threats to dismantle its independent board, pursue legal action against its members, intimidate staff, and censor the company from publicly advocating for peace and the rights of refugees.
In response, Unilever, headquartered in London, stated that it strongly disputes the allegations presented by Ben & Jerry’s social mission board, committing to defend its position robustly.
Since its acquisition of Ben & Jerry’s in 2000, Unilever, which has a history of backing progressive causes, has sought to distance itself from the ice cream firm’s 2021 decision to cease sales in Israeli settlements in the West Bank and contested eastern Jerusalem.
At the time of the acquisition, an agreement was made allowing the independent board of Ben & Jerry’s to pursue its social mission freely, which includes support for various liberal initiatives, including racial justice, environmental issues, LGBTQ rights, and campaign finance reform. However, Unilever reserved the right to make final decisions concerning financial and operational matters.
In July 2022, Unilever announced plans to sell its stake in Ben & Jerry’s to its Israeli licensee. This entity would then sell Ben & Jerry’s products with labels in both Hebrew and Arabic in the occupied West Bank and east Jerusalem. Ben & Jerry’s attempted to challenge this move legally, but the effort was unsuccessful.
Following extensive negotiations, a settlement agreement was formed, stipulating that Unilever must honor the independent board’s mandate concerning the social mission and brand integrity of Ben & Jerry’s and “collaborate in good faith with the Independent Board to protect and advance both,” as noted in the lawsuit.
The lawsuit asserts that Unilever has restricted Ben & Jerry’s from making public statements regarding the Gaza conflict, which includes calls for peace and a swift ceasefire, backing U.S. college protests against the war, and urging an end to U.S. military funding to Israel.
According to the lawsuit, “Unilever has continuously disregarded and disrespected the Independent Board’s crucial role regarding Ben & Jerry’s Social Mission and Brand Integrity, including issuing threats against employees should the company address topics deemed unacceptable by Unilever.” The independent board is pursuing this legal action to defend the brand’s mission from what it perceives as unilateral undercutting by Unilever and to shield the company from the consequences of these overreaching actions.
In March, Unilever announced plans to reduce its workforce by 7,500 positions and divest its ice cream sector to cut expenses and enhance profits.