Unilever has ceased funding to the Ben & Jerry’s charitable foundation, a decision stemming from the foundation’s refusal to provide requested audit documents, Semafor reported.
The move escalates an ongoing conflict between the global consumer goods giant and its ice cream subsidiary.
Peter ter Kulve, who heads Unilever’s ice cream business, communicated to Ben & Jerry’s executives via email that the foundation’s trustees “have continued to resist basic oversight” and are not cooperating with corporate auditors, according to Semafor.
This audit is part of the process for the upcoming spinoff of Unilever’s ice cream business. Reports earlier this year indicated that the probe into the foundation was initiated in part due to its donations to pro-Palestinian organizations.
Ter Kulve emphasized that the lack of transparency from the foundation is a significant concern. “It represents a marked departure from the norms of charitable organizations, for whom transparency is typically a bedrock operating principle,” he wrote in the email, which was seen by Semafor.
The Ben & Jerry’s foundation distributed over $5 million of Unilever’s funds in 2022, primarily to progressive organizations. This practice has been in place since Unilever acquired the Vermont-based ice cream maker in 2000.
Ter Kulve’s e-mail said that management of the soon-to-be independent ice cream company met with foundation trustees and “consistently sought to accommodate concerns” they raised. This included offering to switch audit firms and promising to keep certain grantee information private.
Despite the current dispute, ter Kulve affirmed Unilever’s commitment to the ice cream brand’s core values. “The Foundation is a powerful force for good and has played a meaningful role in advancing the Ben & Jerry’s social mission,” ter Kulve stated to executives. “We remain committed to that mission.”
Representatives for both Unilever and Ben & Jerry’s did not respond to requests for comment, nor did a lawyer for the foundation’s trustees.
The political stances of Ben & Jerry’s have frequently caused friction with its parent company, with tensions increasing as corporate entities became more involved in cultural debates. The friction dates back to at least 2021, when the Vermont-based company announced its decision to cease sales in Judea and Samaria.
The announcement led to months of controversy and criticism, including multiple American states divesting from the firm, and Australia’s kosher authority delisting the ice cream maker.
In July of 2022, Unilever announced that it had reached a new arrangement for Ben & Jerry’s in Israel, selling its Ben & Jerry’s business interests in Israel to Avi Zinger, the owner of American Quality Products Ltd (AQP), the current Israel-based licensee.
Ben & Jerry’s then sued Unilever in a bid to block the sale of the Israeli business to Zinger. That lawsuit was settled in December of 2022.
More recently, Ben & Jerry’s initiated legal action against Unilever, alleging attempts to silence its outspoken stance on Gaza and its past criticisms of President Donald Trump.
In May, the board of Ben & Jerry’s escalated its bitter feud with Unilever by publicly labeling the ongoing conflict in Gaza as “genocide”.
(Israel National News’ North American desk is keeping you updated until the start of Shabbat in New York. The time posted automatically on all Israel National News articles, however, is Israeli time.)
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