Ben & Jerry’s has accused its parent company, Unilever, of unlawfully ousting its CEO, David Stever, allegedly as a reprisal for the ice cream company’s active engagement in social and political matters. According to a recent federal court submission, Ben & Jerry’s claims that on March 3, Unilever announced the removal and replacement of Stever without fulfilling the conditions of their merger agreement. This agreement mandates a discussion with an advisory committee from Ben & Jerry’s board before making such decisions.
In response, Unilever, which is based in London, expressed its desire that the Ben & Jerry’s board would adhere to the established procedure. The company regretfully noted that, despite multiple attempts to engage the board through the appropriate channels, the private nature of an employee’s career conversation was not maintained.
Unilever acquired Ben & Jerry’s in 2000 for $326 million. At that time, it was anticipated that this partnership would offer support to the socially-driven Vermont-based brand in expanding its social mission. However, recent issues have created tension between the two companies. In 2021, Ben & Jerry’s announced it would phase out its operations in Israeli settlements situated in the West Bank and disputed regions of East Jerusalem—a decision that sparked controversy. Consequently, Unilever sold the brand’s Israeli operations to a local entity, allowing continued sales under its Hebrew and Arabic names throughout the region.
Unilever declared in May of last year its intentions to spin off its ice cream segment, which includes Ben & Jerry’s, by the end of 2025 as part of a larger restructuring strategy. Unilever’s portfolio also encompasses consumer goods brands like Dove and Hellmann’s mayonnaise. Nonetheless, dissatisfaction persisted. In November, Ben & Jerry’s launched a lawsuit against Unilever in a New York federal court, accusing it of censoring the brand’s statements supporting Palestinians during the Gaza conflict.
In its legal action, Ben & Jerry’s argued that Unilever had blocked the company from issuing a social media statement that outlined critical topics anticipated during President Donald Trump’s potential second term. These issues included minimum wage adjustments, access to universal health care, abortion rights, and climate change. The recent court filing modifies this ongoing lawsuit.
