Unilever and Ben Jerrys Power Struggle Set To Escalate Under New Leadership

The contentious relationship between consumer goods giant Unilever and its ice cream subsidiary Ben & Jerry’s appears headed for further deterioration following a controversial leadership appointment. Unilever’s nomination of Peter ter Kulve to lead the soon-to-be-independent Magnum Ice Cream Company has sparked fresh tensions in an already fractured partnership.

The proposed appointment, scheduled for board approval in July, comes as Unilever prepares to spin off its ice cream division, which encompasses renowned brands including Ben & Jerry’s, Cornetto, and Wall’s. The FTSE 100 company plans to establish its primary listing in Amsterdam, complemented by secondary listings in New York and London.

Ter Kulve’s selection has proven particularly controversial, as he features prominently in an ongoing lawsuit filed by Ben & Jerry’s. The ice cream maker has accused him of displaying “eye-popping” ignorance towards the brand’s deeply rooted commitment to political and social activism – a cornerstone principle since its Vermont founding in 1978.

The dispute intensified in March when Ben & Jerry’s alleged Unilever had improperly dismissed its chief executive, David Stever, citing his steadfast adherence to the company’s social mission. This followed a 2021 crisis when Ben & Jerry’s decision to cease operations in Israeli-occupied West Bank territories triggered significant backlash from pro-Israel investors.

Recent developments have seen Ben & Jerry’s launch fresh legal action against Unilever, claiming violations of their 2022 settlement agreement through attempted suppression of political messaging. The situation escalated further in April when Unilever threatened to withdraw its annual £5 million funding to Ben & Jerry’s non-profit foundation.

Reports suggest Ben Cohen, who co-founded Ben & Jerry’s with Jerry Greenfield in 1978, is exploring options to repurchase the brand from Unilever, potentially marking a dramatic conclusion to their 25-year corporate relationship.