Unilever Strikes New Distribution Deal for Ben & Jerry’s in Israel
LONDON — Unilever, parent of brands ranging from Dove and Pond’s to Magnum and Hellmann’s, said Wednesday it has reached a new distribution arrangement in Israel for Ben & Jerry’s, a year after the brand pulled out of the region.
Unilever, which notched 52.4 billion euros in revenue last year, and is the second largest company in WWD Beauty, Inc.’s annual Top 100 ranking, said Wednesday the new deal “will ensure the ice cream stays available to all consumers.”
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The deal rolls back a decision by Ben & Jerry’s to terminate distribution in the West Bank.
Ben & Jerry’s, which is owned by Unilever but has an independent board, said last July that it was pulling distribution from the Occupied Palestinian Territory because selling in the region was “inconsistent with our values, and we also hear and recognize the concerns shared with us by our fans and trusted partners.”
At the time, Ben & Jerry’s said it planned to stay in Israel through “a different arrangement.”
Unilever, which was criticized by some in the investor community for the way it handled Ben & Jerry’s decision, confirmed that it sold the ice cream maker business interests in Israel to the current Israel-based licensee, Avi Zinger, the owner of American Quality Products Ltd.
Earlier this year, Zinger had filed suit against Unilever and Ben & Jerry’s in a New Jersey court for breach of contract and wrongful termination.
The new arrangement means Ben & Jerry’s will be sold under its Hebrew and Arabic names throughout Israel and the West Bank under the full ownership of its current licensee.
In a statement, Unilever clarified that when it purchased Ben & Jerry’s in 2000, the ice cream brand and its independent board were granted rights “to make decisions about its social mission.”
Unilever, however, reserved primary responsibility for financial and operational decisions, and said it had the right to enter into the Israel arrangement.
In a report issued in January, RBC noted that Unilever was the target of ongoing “backlash from parts of the investor community” due to Ben & Jerry’s political boycott.
Other analysts have speculated that if Unilever were to spin off its food and beverages division, it would have a hard time offloading Ben & Jerry’s due to its independent board. No other majority-owned companies at Unilever operate with independent boards.
Unilever said that over the past year it has been listening to perspectives “on this complex and sensitive matter, and believes this is the best outcome for Ben & Jerry’s in Israel. The review included extensive consultation over several months, including with the Israeli Government.”
The company said that it “rejects completely and repudiates unequivocally any form of discrimination or intolerance. Antisemitism has no place in any society. We have never expressed any support for the Boycott Divestment Sanctions movement and have no intention of changing that position.”
The Boycott Divestment and Sanctions movement describes itself as working “to end international support for Israel’s oppression of Palestinians and pressure Israel to comply with international law.”
Unilever said it is “very proud” of its overall business in Israel which supplies household products to people across the country. Unilever said its Israel division employs around 2,000 people of diverse backgrounds, has four local manufacturing plants, and works with a network of around 2,000 local suppliers and service providers.
Over the last decade, the company said it has invested around 250 million euros in its business in Israel. “We look forward to continuing to make a positive contribution to Israel’s economy and society for many decades to come, and hope that Israelis and Palestinians can reach a peaceful resolution of their conflict.”
Last July, during its first-half results presentation, Unilever management said that it was aware of the decision made by the independent board of Ben & Jerry’s; that the ice cream maker’s decision did not come as a surprise; and that Unilever remained “fully committed” to selling its products in Israel.
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