Ben & Jerry's claims Unilever removed CEO over political activism
What's the story
Dave Stever, the CEO of Ben & Jerry's, has been ousted from his position by parent company Unilever. The move comes as part of an intensifying battle over the ice cream giant's political activism. This comes to light from a legal case filed by Ben & Jerry's in a US court, accusing Unilever of breaching their merger agreement to stifle its "social mission."
Legal dispute
Unilever's alleged attempt to silence Ben & Jerry's
Ben & Jerry's has been a champion of social causes since its founding in 1978. The ice cream maker was purchased by Unilever in 2000, under a merger deal that created an independent board to maintain the brand's values and mission. However, the tensions between the two companies have been escalating lately. Recently, Ben & Jerry's sued Unilever for allegedly trying to stop it from supporting Palestinian refugees and from making statements about issues expected in Donald Trump's second term.
Company statement
Unilever's response to Ben & Jerry's accusations
Unilever said it was disappointed that an employee career conversation was made public, adding it had made "repeated attempts to engage the [Ben & Jerry's] board and follow the correct process." In a filing with the US District Court for the Southern District of New York, Ben & Jerry's alleged that Unilever had "repeatedly threatened Ben & Jerry's personnel, including CEO David Stever, should they fail to comply with Unilever's efforts to silence the social mission."
Allegations
Ben & Jerry's accuses Unilever of unlawful CEO removal
Ben & Jerry's has accused Unilever of unlawfully removing its CEO, alleging that the move was a retaliation against the ice cream maker's social and political activism. The Vermont-based company said in a legal filing that Unilever had informed its board on March 3 about replacing CEO David Stever. Ben & Jerry's argued this decision violated their merger agreement, requiring consultation with an advisory committee from its board before any CEO can be removed.
Ongoing tensions
Ben & Jerry's and Unilever's strained relationship
The relationship between Ben & Jerry's and Unilever has been strained since 2021 when the ice cream maker announced it would stop selling its products in Israeli settlements in the occupied West Bank and East Jerusalem. The following year, Unilever sold its Israeli operations to a local company that continued selling Ben & Jerry's under its Hebrew and Arabic branding across Israel and the West Bank.