The Ben & Jerry's Brand Faces Destruction, Claims Co-Founder Ben Cohen
That iconic ice cream company risks being destroyed by continuing under parent company Magnum, co-founder Ben Cohen has declared.
His remarks are the latest escalation in a ongoing spat involving the Vermont-based brand with its parent firm over matters concerning social activism, autonomous governance, and core principles.
Conflict Regarding Values and Governance
The warning comes on the same day that the Magnum Ice Cream Company (TMICC) began trading as a separate entity on European financial exchanges, following a separation by former owner the conglomerate Unilever.
The company was acquired by its founders back in 2000 with a deal that granted the brand an unusual level of autonomy, such as a separate independent board plus authority for its advocacy work.
However, disagreements have grown in the decades since, culminating in this present impasse with new owner Magnum.
"If the company continues to be owned by its current owner, not only will its principles disappear, also the essence of the brand will be lost," stated the co-founder.
Recent Flashpoints
- 2021: The company moved to stop sales within Israeli-occupied territories, a decision which resulted in Unilever selling off the brand's business in Israel.
- More Recently: The founder said Ben & Jerry's was blocked from introducing a product flavor intended to express "support for the Palestinian people."
- Governance Battle: Just before the spin-off, Magnum announced that chairperson Anuradha Mittal “no longer meets the requirements for her role” following an internal audit, pointing to serious flaws with financial controls.”
The chair has denounced this assessment, calling it a fabricated review – designed in an attempt to discredit my position,” and stating it is an attack against the independent board's very authority.
“Not Fit to Own”
Cohen contends that Magnum lacks the authority to determine who chairs of the independent board is.”
Cohen stated, “Therefore, by trying to [replace the chair], I would say that they is not suited to own Ben & Jerry's.”
The suggested path forward is either: finding different investors who support the brand’s values, or a complete “reversal” from Magnum to support the existing independent board.
Fear of Turning Into ‘Just Another Bit of Frozen Slush’
The founder, who remains a spokesperson of the brand, warned saying its dedicated following could become lost for good.
“As they undermine Ben and Jerry's values, they are going to lose that following and they will damage the brand itself,” he said.
“It'll become just another lump of ice cream slush which is destined to shed a lot of market share.”
Responding, a spokesperson for the Magnum Ice Cream Company stated that Ben & Jerry's was “not for sale” and that the company has “consistently honored” its social mission.
The New Standalone Ice Cream Giant
The demerger establishes now the world's biggest independent ice cream business.
Magnum's shares started with an opening price of 12.20 euros on its debut on the market, slightly below its anticipated reference price but later recover ending the day up by a 1.3% gain.
