The iconic ice cream brand risks being destroyed by continuing under corporate owner Magnum, founder Ben Cohen has warned.
These statements form the latest escalation within an long-running conflict between the Vermont-based brand and its parent firm over matters concerning political advocacy, board independence, as well as core principles.
Conflict Regarding Values and Control
The warning coincides with the very day when the Magnum Ice Cream Company (TMICC) started being traded as a separate entity on the financial exchanges, after a demerger from former owner Unilever.
Ben & Jerry's was sold to Unilever in the year 2000 under an agreement which provided it a unique degree of independence, such as a separate governing board plus authority for its advocacy work.
However, disagreements have grown in the decades since, leading to this present standoff with successor company Magnum.
"Should Ben & Jerry's remains owned by its current owner, not only will its principles disappear, but the heart of the brand is at risk," said the co-founder.
Recent Flashpoints
- In 2021: Ben & Jerry's moved to halt sales in disputed territories, a decision that led to Unilever divesting the brand's Israeli operation.
- More Recently: Cohen said Ben & Jerry's was prevented from launching an ice cream meant to express "solidarity with the Palestinian people."
- Governance Battle: Just before the spin-off, the parent company announced that board chair Anuradha Mittal “no longer meets the requirements to serve” following a review, pointing to serious flaws with governance.”
The chair has denounced these claims, labeling it a fabricated review – designed to attempt to undermine me,” and that it was an effort on the independent board's very authority.
A Call for Change
The co-founder has argued that the new parent company “has no standing to decide who chairs of the independent board is.”
He went on to say, “Therefore, by trying to [replace its leadership], it is clear that Magnum is not fit to own Ben & Jerry's.”
The proposed solution is either: securing a new group of investors who support the brand’s values, or a complete “180 degree turn around” from Magnum to support the current independent board.
Fear of Turning Into ‘Another Piece of Ice Slush’
Cohen, who remains an employee for Ben & Jerry's, warned saying the company’s “loyal” customer base could be lost for good.
“As they erode Ben and Jerry's core values, they will destroy that following and ultimately damage that brand,” he said.
“It'll become merely another lump of frozen mush that just going to shed a lot of market share.”
In response, a spokesperson for the Magnum Ice Cream Company emphasized that Ben & Jerry's was “not being sold” and that it had “always respected” the brand’s social mission.
A Standalone Business
This spin-off has created now the world's largest independent ice cream company.
Its stock began trading at €12.20 on its first day on the market, under its anticipated initial price however later recover to close up by a 1.3% gain.
