Why Ben & Jerry's has fired 3 board members
What's the story
Ben & Jerry's, the iconic ice cream brand, has removed three members from its independent board. The decision comes as part of a new set of governance practices introduced by the company. The changes include a nine-year term limit for board members. Among those affected is Chairperson Anuradha Mittal, who had previously said she wouldn't resign under pressure.
Cohen's reaction
Ben Cohen criticizes board removal as power grab
Co-founder Ben Cohen has criticized the board removals, calling it a "blatant power grab designed to strip the board of legal authority and independence." His comments highlight an ongoing dispute between the brand and its parent company over social activism and board independence. The BBC reported that Mittal will leave her role immediately, while Daryn Dodson and Jennifer Henderson will exit the board at year-end.
Acknowledgment
Cohen praises departing board members for their service
Cohen praised the departing members, saying they served the company with integrity and courage. He added that over the years, they helped the board make bold decisions to uphold Ben & Jerry's social mission. Meanwhile, the company said these changes are aimed at "preserving and enhancing the brand's historical social mission and safeguarding its essential integrity."
Acquisition impact
Magnum Ice Cream Company's acquisition and future plans
The Vermont-based firm is now owned by The Magnum Ice Cream Company, following a spinoff from Unilever last week. This move created the world's biggest standalone ice cream maker. A spokesperson for Magnum said they want to build and strengthen Ben & Jerry's "powerful, non-partisan values-based position in the world." However, Cohen has warned that if it remains with Magnum, Ben & Jerry's shall be destroyed as a brand.
Sale details
Ben & Jerry's sale to Unilever and subsequent conflicts
Ben & Jerry's was sold to Unilever in 2000, a deal that allowed it to keep an independent board and decide on its social mission. However, since then, there have been growing clashes between the brand and Unilever. This conflict has now been passed on to Magnum. In 2021, Ben & Jerry's refused to sell its products in Israeli-occupied territories, leading Unilever to sell its Israeli operation to a local licensee.