K A S H R U T . C O M_©

Unilever settles dispute with Ben & Jerry’s over Israeli sales

December 15, 2022 - from JNS:

"Unilever plc announced on Thursday that its legal battle with the independent board of its wholly-owned autonomous subsidiary Ben & Jerry’s, over the brand’s sale of ice cream in Israel, has been resolved."

Unilever: Ben & Jerry's has no power to sue over Israeli ice cream sale

December 2, 2022 - from US News:

"Unilever plc asked a U.S. judge to dismiss a lawsuit by Ben & Jerry's over the sale of its Israeli ice cream business, saying the subsidiary's "'nsistence on taking sides' in the Israeli-Palestinian conflict gives its board no authority to stop or even sue over the sale."

"In a filing on Friday afternoon in Manhattan federal court, Unilever said Ben & Jerry's board 'is no ordinary board.'

""The board, it said in the filings, has some responsibility to preserve its 'social mission' and safeguard the brand under the shareholder agreement from 2000, when Unilever bought Ben & Jerry's. But Unilever said that the board cannot sue.

"Unilever also said the board's "recent insistence on taking sides in the Israeli-Palestinian conflict created an untenable situation" for both sides."

Ben & Jerry’s co-founders say Unilever violated merger agreement

September 20, 2022 - from FoodDive.com:

• "Ben & Jerry’s co-founder Ben Cohen said in an MSNBC interview Sunday that by selling its Israeli operations to a licensee that would market its products in the Israel-occupied West Bank, parent company Unilever has “usurped their authority” by going against the wishes of Ben & Jerry’s independent board. Cohen said it 'can’t allow that to happen, we can’t sit idly by.'
• "The ice cream brand has said it will amend its lawsuit about the divestment against Unilever in federal court in Manhattan, which it may do until Sept. 27, according to court records.
• "The independent board of Ben & Jerry’s, which controls social responsibility matters, was formed as part of its merger agreement with Unilever. The Vermont-based brand regularly advocates for causes such as ending modern slavery and the Black Lives Matter movement."
• "Based on Unilever’s purchase agreement with Ben & Jerry’s, Unilever decides who should be the ice cream brand’s CEO. But that CEO must defer to Ben & Jerry’s independent board about the “social responsibility aspects of the company,” Tulane University Law School professor Ann Lipton told the New York Times. Unilever also can only appoint two of the 11 seats on the brand’s board, the outlet noted. Shareholders of publicly traded companies usually vote to decide board members.
• "The social responsibility aspects of that deal, specifically the independent board’s power, are what Cohen and co-founder Jerry Greenfield said was the bedrock of the purchasing agreement. The 2000 deal filed with the Securities and Exchange Commission as part of Unilever’s acquisition of the ice cream company stated the parties agreed 'the Surviving Corporation Board will have primary responsibility for preserving and enhancing the objectives of the historical social mission of the Company as they may evolve from time to time consistent therewith.'
• "Unilever has maintained it has the right to make operational decisions for the ice cream brand."

Ben & Jerry’s Makes Fresh Push to Stop Israel Ice Cream Deal

September 6, 2022 - from Bloomberg:

"Ben & Jerry’s is renewing its effort to unwind a contentious decision by parent company Unilever Plc to sell the ice-cream business in Israel.

"The Vermont-based ice-cream maker will confirm as early as Tuesday that it plans to file a revised complaint in New York federal court in the coming weeks, said two people familiar with the matter. Ben & Jerry’s independent board wants to stop Unilever’s sale of its brand and trademark to local licensee Avi Zinger as the deal allows the ice cream to be sold in the Israeli-occupied West Bank.

"The board, which first sued its corporate parent in early July, argues that the sale conflicts with Ben & Jerry’s long-held “core values” and breaches a legal agreement made when Unilever bought the brand in 2000."

Ben & Jerry’s Loses Bid to Halt Sales In West Bank

August 3, 2022 - from the Wall Street Journal

"A US judge on Monday rejected Ben & Jerry’s attempt to stop its parent Unilever Plc from allowing its ice cream to be sold in the West Bank, which Ben & Jerry’s said undermined its values.

"US District Judge Andrew Carter in Manhattan said Ben & Jerry’s did not deserve an injunction to halt ice cream sales and marketing because it did not show it would suffer irreparable harm, or that customers would be confused.

"Ben & Jerry’s sued Unilever on July 5, saying the sale of its Israeli business to local licensee Avi Zinger violated the agreement under which Unilever bought the Burlington, Vermont-based company in 2000.

"The sale came nearly a year after Ben & Jerry’s decided to end sales in the West Bank, saying it was “inconsistent” with the values and social mission it retained the right to promote.

"Unilever countered that Ben & Jerry’s had no power to stop the sale of the Israeli business, and the sale could not be undone because it had closed in late June.

"The unusual dispute has shone a spotlight on Unilever‘s goal of giving its more than 400 brands social missions and purpose.

"Carter rejected as “too speculative” the idea that customers would be confused if Zinger offered new products conveying a message that might conflict with Ben & Jerry’s own.

"The judge noted that products sold in the West Bank would use Hebrew and Arabic trademarks, not English language trademarks."

Ben & Jerry’s Escalates Dispute With Unilever Over Israel Business

August 3, 2022 - from the Wall Street Journal

"Ben & Jerry’s ratcheted up its war of words with Unilever PLC, UL 0.52%▲ saying it had sued its parent company because it feared that left unchecked, the consumer-goods giant would undermine the ice-cream brand’s reputation and business.

"Ben & Jerry’s filed a complaint with the U.S. District Court in Manhattan in July, seeking to block Unilever’s sale of the ice-cream maker’s Israeli business to a licensee. Unilever’s move followed a rift over Ben & Jerry’s decision last year to end sales of its products in Jewish settlements in the Israeli-occupied West Bank and contested East Jerusalem.

"On Wednesday, Ben & Jerry’s said its grievance with Unilever was about more than just the Israel issue, in a statement explaining its rationale for the lawsuit.

"Ben & Jerry’s said in its statement that Unilever had frozen the board’s compensation as a “pressure tactic” before a recent mediation between the two sides. Those talks ended unsuccessfully last week. A hearing on Ben & Jerry’s request for a temporary injunction to block Unilever’s sale of the brand’s Israel business is scheduled for Monday."

Ben & Jerry’s Sues Unilever Over Sale of Ice Cream Business in Israel

June 30, 2022 - from the Wall Street Journal

"Ben & Jerry’s is suing parent company Unilever to block the sale of its Israeli business to a licensee, the latest twist in a rift over the ice cream maker’s decision to end sales in Israeli-occupied West Bank and contested East Jerusalem.

"In a complaint filed in U.S. District Court in Manhattan on Tuesday, Ben & Jerry’s said Unilever’s decision to sell the business in Israel last week was done without the approval of Ben & Jerry’s independent board of directors.

"The board held a special meeting on Friday in response to Unilever’s decision and voted 5-2 to file a lawsuit against its parent company, according to the complaint. Two Unilever appointees on the board were the dissenting votes, the lawsuit said."

Ben & Jerry’s Israel, Unilever reach deal to end settlement boycott

June 29, 2022 - from Times of Israel

"The Foreign and Economy ministries issue a joint statement welcoming an agreement reached between Ben & Jerry’s Israel and its parent company Unilever under which the former will be able to sell its ice cream in the West Bank.

"The agreement is the result of a settlement reached in a federal US lawsuit filed on behalf of Ben & Jerry’s Israel owner Avi Zinger by the Louis D. Brandeis Center for Human Rights Under Law.

"As a result of the deal, Unilever has sold all of its business interests in Israel to Zinger, who will now be allowed to sell the ice cream on both sides of the Green Line, though no longer under the auspices of Unilever and the original Ben & Jerry’s, which made the decision to boycott.

"The Israeli branch will also sell its ice cream using Hebrew and Arabic labeling, as it no longer will be allowed to use Ben & Jerry’s original English branding."