(L-R) Ben Cohen and Jerry Greenfield, co-founders of Ben & Jerry’s, partnered with MoveOn handy out free ice cream at Franklin Sq. in Philadelphia throughout their Scoop The Vote tour to get-out-the-vote for Vice President Kamala Harris and Democrats down the poll on September 16, 2024 in Philadelphia, Pennsylvania.
Lisa Lake | Getty Photos Leisure | Getty Photos
Ben & Jerry’s co-founder Ben Cohen has slammed dad or mum Magnum Ice Cream Firm, saying it’s “destroying” the model, in an interview with CNBC.
The world’s largest standalone ice cream enterprise, Magnum, is just every week outdated however has already had a lifetime of company drama.
Ben & Jerry’s CEO Jochanan Senf, appointed by Unilever, has mentioned adjustments to the phrases of the board, together with a nine-year time period restrict, setting a board cadence with “protocols on engagement” and an obligation to adjust to Magnum’s code of enterprise integrity, would strengthen governance and transparency.
Cohen, nevertheless, mentioned statements made by Magnum in regards to the governance adjustments had been “Orwellian.”
“They mentioned that they are enhancing the social mission after they’re truly destroying it. They mentioned that they are future-proofing the Board of Administrators after they’re truly dismantling it,” Cohen instructed CNBC. “It is one other determined energy seize.”
By Monday, three administrators had been ousted from the impartial board of Ben & Jerry’s, in a brand new twist to the battle between the model named after its well-known founders and its dad or mum firm over the model’s social mission. It is a row that newly listed Magnum inherited from shopper big Unilever when it formally spun off into an impartial firm final week.
The adjustments to Ben & Jerry’s company governance “intention to protect and improve the model’s historic social mission and safeguard its important integrity,” a spokesperson instructed CNBC in an emailed assertion. “Since 2000, the Board has labored with the corporate to make sure Ben & Jerry’s is a crucial voice for social change and to amplify actions that form a extra simply and equitable world,” they added.
Magnum mentioned Chair Anuradha Mittal — one of many board members notified of their ineligibility — not meets the factors to function a member of the board following “inner investigations,” the corporate mentioned, declining to provide additional particulars.
“Initially, they had been making an attempt to eliminate the chairman of the [independent] board, by making these unfounded allegations that she’s ‘not match to serve’. They weren’t in a position to substantiate that, so now they’re saying, effectively, she served for too lengthy,” Cohen mentioned. “It is arbitrary, and it is unlawful.”
Ben & Jerry’s was bought to Unilever in 2000 in a deal that allowed the model to take care of an impartial board in addition to the correct to make choices on its social mission. Since 2021, nevertheless, rising discontent by the board in addition to founders Cohen and Jerry Greenfield over what they name makes an attempt to “silence” the social mission. CNBC has reached out to Unilever for remark.
Unilever, and now Magnum, retains major accountability for all issues not regarding the social mission or issues expressly delegated to the Ben & Jerry’s board, together with monetary and operational points.
Magnum has mentioned the governance construction of Ben & Jerry’s poses materials reputational and enterprise dangers.
Not on the market
Unilever and Magnum have repeatedly mentioned that Ben & Jerry’s is not on the market.
“Ben & Jerry’s is a proud, thriving and integral a part of The Magnum Ice Cream Firm, and it’s not on the market,” the Magnum spokesperson mentioned. “For the reason that acquisition in 2000, Unilever and now TMICC has taken Ben & Jerry’s from 4 to 46 nations, gross sales have elevated six-fold, and we have now invested practically half a billion euros within the social mission.”
Ben & Jerry’s is without doubt one of the ice cream group’s 4 international energy manufacturers, alongside the Heartbrand, Magnum and Cornetto. In 2024, Ben & Jerry’s introduced in 1.1 billion euros ($1.3 billion) to group income, making it the third largest income generator among the many group’s portfolio of greater than 100 manufacturers. The 4 manufacturers mixed accounted for 82% of the group’s whole full-year income.
Unilever first introduced plans to spin off its ice cream unit in March final 12 months. “We wanted actual deal with ice cream,” Magnum CEO Peter ter Kulve instructed CNBC’s Squawk on the Road final week, highlighting how the corporate is managing to develop each market share and volumes.
For the reason that pure ice cream inventory debuted on public markets in Amsterdam and New York on Dec. 8, the inventory has risen about 10% and is now valued at practically 9 billion euros. The corporate has set a income development goal of between 3% and 5% from 2026.
They mentioned that they are enhancing the social mission after they’re truly destroying it. They mentioned that they are future-proofing the Board of Administrators after they’re truly dismantling it.
Ben Cohen
Ben & Jerry’s, co-founder
However Cohen, who nonetheless works on the model, does not see any advantage of the model he co-founded in 1978 staying a part of the ice cream group.
“They’re being short-sighted, however I additionally assume that they only do not perceive,” he mentioned of administration. “They do not perceive that the worth of Ben & Jerry’s is tied up within the place that it has established as being within the forefront of companies which have a priority for the general advantage of the society, versus simply maximizing earnings.”
“Buyers can be quite a bit higher off if Magnum lastly bought this asset, which they’re within the strategy of devaluing, and as a substitute took the cash and acquired another middle-of-the-road manufacturers, as a result of that is what they’re good at,” he added. “There’s some huge cash to be made in center of the highway stuff, however they ought to stay to their knitting and never attempt to not attempt to drive Ben & Jerry’s to turn into simply one other one among their center of the highway manufacturers.”
In September, Cohen and Greenfield launched the marketing campaign #FreeBenAndJerrys, calling for his or her dad or mum firm to permit it to turn into “an independently owned firm with socially-aligned traders and as soon as once more free to honor its social mission and dwell by its model values, with out compromise.”
The marketing campaign is aimed toward encouraging a bunch of traders who consider within the social mission to purchase the model again.
“We’ve that group, they’re prepared,” Cohen mentioned, whereas including that Unilever and now Magnum refuse to expose the required monetary info traders must make a rational supply. Cohen declined to call the traders.
Unilever mentioned in its third-quarter earnings report that Ben & Jerry’s grew mid-single digits, supported by the continued success of newly launched improvements equivalent to new dairy, non-dairy flavours and Scoopapalooza, however did not specify different monetary info on a brand-by-brand foundation.
Magnum declined to offer additional monetary info on Ben & Jerry’s.
Peace, love and ice cream
Ben & Jerry’s has a three-part mission: a social mission, a product mission, and a monetary mission, which Cohen says are all equally important and interrelated. “It is one thing that people who find themselves introduced up within the Unilever conventional system cannot perceive. It took us a very long time to determine it out… and so they’re simply making an attempt to make us into one other piece of frozen mush.”
The Magnum spokesperson mentioned the corporate “stays unequivocally dedicated to Ben & Jerry’s three-part mission,” including that it continues to advocate for a spread of causes.
“There isn’t any manner that Ben & Jerry’s can keep the values that constructed it into the model that it’s in the present day with out changing into owned by a bunch of traders that truly help the social mission as a substitute of making an attempt to destroy it,” mentioned Cohen in regards to the model that has “peace, love and ice cream” as its slogan.
Magnum CEO ter Kulve instructed the Monetary Occasions earlier this month that Cohen and Greenfield must “hand over to a brand new era.”
However Cohen says it isn’t about him as a person, however about sustaining the values of the corporate. “Values do not get outdated,” he mentioned.
“I’ve no drawback handing over the corporate to this group of traders that help the values… and if Magnum truly supported the social mission, I might haven’t any drawback with them doing it.”
Correction: This text has been up to date to appropriate that Magnum has a market valuation of practically 9 billion euros. A earlier model misstated the determine.
