Ben Cohen, co-founder of Ben & Jerry’s, told the BBC that the iconic ice-cream brand will face destruction if it stays under the newly independent Magnum Ice Cream Company (TMICC).
His warning escalates a long-running clash between the socially driven brand and its parent company over the independence of Ben & Jerry’s board and its freedom to pursue its social mission.
On Monday, Magnum began trading on the European stock market after its spin-off from Unilever. A company spokesperson said Magnum aims to strengthen Ben & Jerry’s “powerful, non-partisan values-based position in the world”.
Roots of the dispute
Ben & Jerry’s sold the company to Unilever in 2000 under a deal that protected an independent board and gave it authority over the brand’s social mission.
Tensions have risen ever since. In 2021, the company halted sales in Israeli-occupied territories, which pushed Unilever to sell its Israeli operations to a local licensee. In October, Cohen revealed that Ben & Jerry’s leadership blocked a flavour meant to show solidarity with Palestine.
Last month, just before the spin-off, Magnum announced that board chair Anuradha Mittal, who has served since 2018, “no longer meets the criteria to serve”. The company cited an internal audit that found “material deficiencies in financial controls, governance and other compliance policies, including conflicts of interest”, and said Mittal had not fully resolved the issues.
Mittal rejected the findings and told Reuters the audit was a “manufactured inquiry” aimed at discrediting her and weakening the board’s authority.
Cohen: Magnum “not fit to own” Ben & Jerry’s
Cohen argued that Magnum has no legal power to decide who chairs the independent board. “By trying to [change the chair], I would say that Magnum is not fit to own Ben & Jerry’s,” he said.
He urged Magnum to either sell the brand to investors who support its values or fully reinstate the current board chair.
Cohen, still an employee and the company’s most visible spokesperson, warned that customers will turn away if the brand loses its values. “It’ll become just another piece of frozen mush that’s going to lose a lot of market share,” he said.
Co-founder Jerry Greenfield left the company in September after almost five decades, saying the company had begun stifling its social mission.
Magnum’s chief executive, Peter ter Kulve, told the Financial Times that the founders, now in their seventies, should step aside for a younger generation. Cohen dismissed the comment as “absurd”, saying the dispute centres on legally binding agreements, not age.
Market reaction
Magnum shares opened at €12.20, below the expected €12.80 reference price, but closed 1.3% higher. The spin-off now positions Magnum as the world’s largest standalone ice-cream company.
A Magnum spokesperson repeated that Ben & Jerry’s is “not for sale” and said the company has “always respected” its commitment to the brand’s social mission.
Source: BBC
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