“Ben & Jerry’s Claims Unilever is Silencing Its Voice Over Trump Controversy”
“Donald Trump’s name sparks controversy, fueling opposition. Meanwhile, Unilever faces internal conflict as it plans to divest iconic ice cream brands, including Ben & Jerry’s, amid growing tensions over the company’s social mission. Will the iconic ice cream giant’s social stance impact its future?”
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Reuters, New York, January 24: The U.S. ice cream manufacturer’s social policy statement was suppressed because it addressed President Donald Trump, according to a new tab that Ben & Jerry’s opened on Friday. This intensified the company’s censorship case against Unilever (ULVR.L).
Ben & Jerry’s accused in an amended case filed in Manhattan federal court in November, alleging that Unilever threatened to disband its independent board and silence its attempts to voice sympathy for Palestinian refugees and stop military contributions to Israel.
In addition to demanding that Unilever fulfill its pledge to pay $25 million to organizations selected by the ice cream firm, Ben & Jerry’s is seeking a court order that would allow the board to continue overseeing its social goal.to
Requests for comment were not immediately answered by Ben & Jerry’s or Unilever.
Since 2021, when Ben & Jerry’s chose to discontinue Chubby Hubby, Cherry Garcia, and other ice cream flavors in the Israeli-occupied West Bank due to their inconsistency with the company’s ideals, the two businesses have been publicly at conflict.
Some investors sold their Unilever stock as a result, and Ben & Jerry’s sued its parent company for selling its Israeli division to a local licensee.
As part of a 2022 settlement, Unilever agreed to pay $25 million and support Ben & Jerry’s autonomous board and social objective.
In an effort to streamline its product line and save expenses, London-based Unilever has since revealed plans to spin out its ice cream division, which includes Ben & Jerry’s. However, the lawsuit might make those preparations more difficult.
“Whenever there is a cloud over it, it becomes more difficult to sell or spin it out, so that doesn’t help. It influences how people perceive its worth,” stated Charles Elson, a corporate governance specialist and former law professor at the University of Delaware.
Nelson Pelz, Donald Trump, and Elon Musk
According to the amended complaint, Ben & Jerry’s stated that following Trump’s election, its board and management collaborated with Unilever’s global head of litigation to draft a post that would be unveiled on Inauguration Day. The post would address contentious topics like abortion, climate change, minimum wages, and universal healthcare.
However, the complaint claimed that Peter ter Kulve, the head of Unilever’s ice cream division, “unilaterally barred Ben & Jerry’s from issuing the post because it specifically mentioned ‘Donald Trump,'” on January 18, two days before Trump’s inauguration.
According to Ben & Jerry’s, Ter Kulve seemed to make his choice based only on instinct, disregarding the company’s past opposition to the Trump administration.
Additionally, it stated that shortly after, Kulve hosted a town hall meeting in which he bragged about how Trump supporter and activist investor Nelson Peltz, a board member of Unilever, had introduced the president to Elon Musk, the founder of Tesla (TSLA.O), and close Trump adviser.
The complaint stated that ter Kulve had stated that “despite four decades of progressive social activism–and years of challenging the Trump administration’s policies specifically–criticizing Trump was now too taboo for the brand synonymous with ‘Peace, Love, and Ice Cream.’
This month, a number of businesses in the banking, retail, and other industries have reduced their support for initiatives whose alleged social impact has angered Trump and his followers.
THE INABILITY TO PAY
Founded in 1978 in a refurbished gas station by Ben Cohen and Jerry Greenfield, Ben & Jerry’s maintained its socially minded aim after being acquired by Unilever in 2000.
The new complaint states that Ben & Jerry’s intended to provide $20 million over ten years to support Palestinian almond growers and a fair trade almond supplier it had long used, in addition to $5 million from Unilever to human rights organizations.
It said that Unilever has not made the second $2.5 million installment and objected to the $5 million in payments because it thought they would promote “Palestinian human rights.”
Additionally, according to Ben & Jerry’s, Ter Kulve objected to the $20 million payment since he was unaware of the almond source and didn’t like the 2022 settlement.
Unilever’s dozens of other products include Dove soap, Hellmann’s mayonnaise, Knorr bouillon cubes, Surf detergent, and Vaseline petroleum jelly.