Ben & Jerry's founders reportedly seek sweet deal to buy back brand from Unilever

Ben Cohen and Jerry Greenfield, founders of popular ice cream brand Ben & Jerry's, are reportedly looking to reclaim their brand from consumer packaged goods company Unilever. 

According to Bloomberg the pair, who sold the ice cream company to Unilever in 2000, have discussed a possible deal. Cohen and Greenfield may also be looking to collaborate with investors who share their social values. 

However, Unilever told Bloomberg the ice cream brand is not for sale, stressing Ben & Jerry's remains part of its broader strategy to improve performance and reduce costs. MARKETING-INTERACTIVE has reached out to Unilever for comment. 

Don't miss: Unilever ID to sell ice cream business to Magnum Ice Cream ID in US$440m deal

However, tensions between Ben & Jerry's and Unilever have been ongoing. In 2021, the conflict escalated when Ben & Jerry's announced that it would stop selling its products in the West Bank, which is occupied by Israeli troops, citing that it was inconsistent with the brand’s values. Ben & Jerry's later sued Unilever to prevent the sale of its Israeli business to a local licensee, named Avi Zinger, Reuters reported.

The brand explained in the lawsuit that the sale announced on 29 June "threatened to undermine [the brand's] integrity", which Ben & Jerry's board preserved independence to protect when it was acquired by Unilever, Reuters added.

The rumored buyback also comes after Unilever unveiled plans to accelerate its Growth action plan (GAP) through the separation of its ice cream brands by the end of 2025. In a statement released early last year, Unilever said its ice cream unit had a "very different operating model" as compared to its other divisions, hence, the company decided to separate the unit to best serve its "future growth".

The company noted that the separation of its ice cream brands will create a world-leading business, operating in a highly attractive category, with brands that together delivered turnover of €7.9 billion in 2023.

"The business has five of the top 10 selling global ice cream brands including Wall’s, Magnum and Ben & Jerry’s, with exposure in both the in-home and out-of-home segments across a global footprint," it added.  Unilever also added that a "demerger" of its ice cream brands was most likely the separation route it would be taking, however, other options will be considered to maximise returns for shareholders. 

Most recently, Unilever also saw a sudden leadership shakeup with the exit of CEO Hein Schumacher. Schumacher’s surprise exit comes as the board determined his progress to be slow compared to industry rivals such as Nestle and P&G.

Schumacher’s strategic overhauls included cost reductions, plans to spin off the ice cream division, and a sharpened focus on core brands. However, under his leadership Unilever also saw shares rising.

Related articles:
Unilever marketing leadership sees shuffle amidst structural simplification
Unilever Philippines head of media Dennis Perez takes expanded SEA remit
Unilever will cease marketing of F&B to children below 16 years old