The Ben & Jerry’s co-founder Jerry Greenfield has stepped away from the ice-cream brand after nearly 50 years, claiming it has lost its independence and accusing its parent company, Unilever, of having “silenced” its social mission.
Greenfield said in a letter posted by his co-founder, Ben Cohen, that he could no longer “in good conscience” remain an employee of a business that he argued had been muzzled by the UK-listed Unilever, despite an agreement protecting its social mission when it was taken over in 2000.
“It is profoundly disappointing to come to the conclusion that that independence, the very basis of our sale to Unilever, is gone,” he said. “If the company couldn’t stand up for the things we believed, then it wasn’t worth being a company at all.”
Greenfield, who along with Cohen has no control over operations but had remained an employee to help maintain its founding social mission, called it one of the “hardest and most painful decisions” he had ever made.
Greenfield’s resignation is the latest development in a bitter dispute since Unilever backtracked on an agreement allowing Ben & Jerry’s to not sell ice-cream in occupied Palestinian territories, which had been heavily criticised in Israel.
Unilever subsequently sold Ben & Jerry’s Israel division to a local operation, prompting the ice-cream maker to sue its parent company before reaching a settlement in 2022.
Last year, Ben & Jerry’s launched a legal action against Unilever, accusing it of threatening to dismantle the board and sue directors over their public statements in support of Palestinians in Gaza.
The letter comes as Unilever prepares to spin out its ice-cream division, Magnum Ice Cream Company (TMICC), which also includes Wall’s, with a main listing in Amsterdam and secondary listings in London and New York.
Before the new business’s first capital markets day last week, Cohen and Greenfield published an open letter to the board and potential investors calling for the brand to be “released”.
The letter also argued that Unilever’s move to dismantle Ben & Jerry’s social mission had devalued the business.
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Cohen and Greenfield have been looking for investors to help them buy the brand back, but Unilever has insisted it is not for sale. Cohen said that amid tension with Unilever, the brand had tried to engineer a sale to investors at a fair market value of $1.5bn-$2.5bn but the proposal was rejected.
“The problem is that Unilever and Magnum don’t want to sell, so they are not allowing any of these potential investors see the financials,” said Cohen.
A spokesperson for TMICC said it would be “forever grateful” to Jerry for his role co-founding the company, but that the business “disagreed with his perspective” and had sought to engage both co-founders in a “constructive conversation” on how to strengthen the brand.
