Ben & Jerry's Legal Battle with Unilever

By Jessica DiNapoli

NEW YORK (Reuters) – Ice cream brand Ben & Jerry's has filed a lawsuit claiming that parent company Unilever has suppressed its attempts to support Palestinian refugees and threatened to dismantle its board.

This lawsuit is a continuation of the tensions between Ben & Jerry's and Unilever that began in 2021, when Ben & Jerry's announced it would cease selling its products in the Israeli-occupied West Bank, a move that sparked investor backlash against Unilever. In response to Unilever selling its Israeli business to a licensee, Ben & Jerry's filed a lawsuit that was settled in 2022.

In the current lawsuit, Ben & Jerry's alleges that Unilever violated the confidential terms of their 2022 settlement, which stipulated that Unilever must respect the independent board's authority over the brand's social mission.

Ben & Jerry's claims to have attempted to publicly advocate for peace and human rights on four occasions, but alleges Unilever has silenced these efforts. Specific calls included requests for a ceasefire, supporting Palestinian refugees, and advocating against U.S. military aid to Israel.

The independent board did express opinions on these issues but claims the company was stifled by Unilever. According to the lawsuit, Peter ter Kulve, Unilever's head of ice cream, expressed concerns over perceived anti-Semitism that could arise from the brand addressing Gaza's humanitarian situation.

Additionally, Unilever is required under the settlement to provide $5 million for Ben & Jerry's to donate to chosen human rights organizations. Ben & Jerry's identified groups such as Jewish Voice for Peace, which Unilever later criticized for being excessively critical of the Israeli government.

Ben & Jerry's has long embraced a socially conscious mission since its inception in 1978, a commitment that continued after the 2000 acquisition by Unilever. Recently, in March, Unilever announced plans to spin off its ice cream business by the end of 2025.

Unilever's product range spans many well-known brands, including Dove, Hellmann's, Knorr, Surf, and Vaseline.