In a surprising twist, the founders of Ben & Jerry’s, Ben Cohen and Jerry Greenfield, are reportedly in talks to buy back their iconic ice cream brand from its parent company, Unilever.
According to sources close to the situation, discussions have begun for a potential buyback deal.
Tensions Between Ben & Jerry’s and Unilever
The move comes after ongoing tensions between Ben & Jerry’s and Unilever, particularly surrounding the ice cream company’s stance on political and social issues.
Sources claim that Unilever restricted the founders from publicly criticizing former President Trump and his policies, a stance that has sparked dissatisfaction among the socially conscious Ben & Jerry’s leadership.
The ice cream brand, known for its activism, has long taken positions that often clash with the corporate interests of its parent company.
The Social Mission of Ben & Jerry’s
Since its founding in 1978 in Burlington, Vermont, Ben & Jerry’s has maintained a strong commitment to social justice and environmental causes.
The company’s mission was put into place when Unilever bought it in 2000 for $326 million.
While Unilever took control of the brand, an independent board was created to safeguard the company’s commitment to its social causes, which often led to disagreements with the corporate giant.
One of the most public confrontations occurred in 2021, when Ben & Jerry’s decided to stop selling ice cream in the Israeli-occupied West Bank, a move that drew strong criticism from Unilever.
This has been just one example of the challenges the ice cream company has faced in maintaining its socially conscious mission while under the ownership of a multinational corporation like Unilever.
The Potential Buyback and Funding Challenges
In recent reports, it’s been revealed that Cohen and Greenfield are now considering buying back the company they founded, with the goal of reclaiming control over its social mission.
They are looking to partner with socially-minded investors to help fund the buyback, which could involve raising billions of dollars, given the high valuation of Ben & Jerry’s.
The news comes just days after Unilever’s CEO Hein Schumacher was ousted after a brief tenure of less than two years.
Schumacher had been at the helm during efforts to divest Ben & Jerry’s, which included plans to spin off the ice cream brand through a stock market listing in Amsterdam, with additional listings in London and New York.
The move is seen as a response to growing pressure from shareholders, such as activist investor Nelson Peltz, who have criticized Unilever’s performance.
Unilever’s Response to the Buyback Discussions
In response to the reports, a Unilever spokesperson confirmed that the company is on track to separate Ben & Jerry’s through a demerger.
However, they emphasized that the ice cream brand is not for sale.
The spokesperson stated, “Ben & Jerry’s is an important part of the ice cream business,” reinforcing the company’s commitment to maintaining its involvement in the ice cream market, despite ongoing internal disputes.
As for Ben & Jerry’s, the company has not yet responded to requests for comment.
The potential buyback marks a new chapter in the long-standing saga between the ice cream brand and its corporate parent, raising questions about the future of Ben & Jerry’s social mission and its place within the corporate world.