Magnum ice cream dispute sparks row over Ben and Jerrys independence amid Unilever demerger plans

The long-standing tensions between Ben and Jerry’s and its owners have escalated this week, as the co-founder of the iconic ice cream brand accused its parent company of orchestrating a “power grab.” The row comes after the Magnum Ice Cream Company, soon to be floated as a standalone business, declared that Ben & Jerry’s chairwoman Anuradha Mittal “no longer meets the criteria” to serve on its independent board.

Ben Cohen, who co-founded Ben and Jerry’s in Vermont in 1978, issued a strongly-worded rebuke, describing the move as “corporate interference in the brand’s integrity and the erosion of protections from within.” His concerns centre on the social mission that has long defined the company, arguing that the removal of Mittal is an attempt to stifle its activist roots. “This is not governance. It’s a power grab to stifle the social mission, which will in turn destroy the long-term value of the brand,” Cohen said.

Relations between Ben and Jerry’s independent board and its owners have remained fraught ever since Unilever acquired the company for $326 million in 2000. As part of the merger, Cohen and co-founder Jerry Greenfield insisted on creating an independent board to safeguard the company’s product quality, marketing, licensing, trademarks, and social mission in perpetuity. Mittal, who joined the board in 2007, has been a vocal defender of these principles and recently accused Unilever of dismissing Ben & Jerry’s former chief executive David Stever for resisting the dilution of the brand’s progressive values.

The dispute with Magnum has intensified as Unilever prepares to demerge the ice cream giant and list it on the Amsterdam stock exchange, with secondary listings in London and New York. The spin-off, initially delayed due to a United States federal government shutdown, is now scheduled for 8 December, with shares expected to fetch a valuation of around €15 billion.

Tensions reached new heights after Ben & Jerry’s 2021 decision to cease selling its products in the Israeli-occupied West Bank, a policy that prompted some pro-Israel investors to divest from Unilever. Peter ter Kulve, who will lead the new Magnum entity, has already been named in past lawsuits alleging he attempted to undermine Ben & Jerry’s political activism.

In September, Jerry Greenfield resigned, claiming the company could no longer freely support peace, justice, and human rights. Ben Cohen remains and has confirmed he is working with investors to buy back the business, stating: “We have put together a group aligned with the social mission, ready to pay fair market value. Yet Unilever refuses even to engage and insists the business is not for sale.”

With the planned demerger, Magnum is poised to become the only pure-play listed company in the vast global ice cream market, commanding more than a fifth of the sector. As debates around governance and mission intensify, the future independence of Ben & Jerry’s —and its distinctive commitment to social causes—remains in question.