That iconic ice cream brand could be ruined if it remains owned by corporate owner the Magnum Ice Cream Company, co-founder Ben Cohen has declared.
His statements are a new chapter within an long-running dispute between the ice cream maker with its corporate owner regarding matters concerning political advocacy, board independence, as well as brand values.
Conflict Over Values and Control
The warning comes on the same day when the Magnum Ice Cream Company (TMICC) began trading on the separate company in the financial exchanges, after its separation from former owner the conglomerate Unilever.
Ben & Jerry's was sold by its founders back in 2000 under an agreement which provided it an unusual degree of autonomy, such as its own governing board and authority for its social mission.
However, disagreements have consistently deepened in the years, leading to this present standoff with successor company TMICC.
"Should Ben & Jerry's continues to be owned by its current owner, both its principles disappear, also the very soul of the brand will vanish," warned Mr. Cohen.
Recent Points of Contention
- In 2021: Ben & Jerry's moved to stop sales in Israeli-occupied territories, an action that led to its then-owner divesting its local Israeli operation.
- More Recently: The founder claimed Ben & Jerry's was blocked from introducing a product flavor meant to show "support for the Palestinian people."
- Board Leadership: Ahead of the demerger, Magnum announced that board chair Anuradha Mittal failed to meet the criteria to serve” after a review, citing serious flaws in financial controls.”
The chair has rejected these claims, calling it a fabricated review – designed to attempt to discredit my position,” adding stating it is an attack against the independent board's very authority.
A Call for Change
Cohen contends that the new parent company “has no standing to determine who the chair the autonomous board should be.”
Cohen stated, “Therefore, in attempting to [change the chair], it is clear that Magnum is not suited to own this brand.”
The suggested path forward is one of two options: securing different owners who support its mission, or an absolute “reversal” by Magnum in support of the current board's autonomy.
Fear of Turning Into ‘Just Another Bit of Frozen Slush’
Cohen, who remains an employee of the brand, warned that the company’s “loyal” customer base could become alienated for good.
“As they destroy the brand's values, they will lose that following and they will damage that brand,” he warned.
“It'll become just another lump of ice cream slush that destined to shed a lot of customers.”
In response, a spokesperson for Magnum stated that the brand was “not being sold” adding the company has “consistently honored” its social mission.
The New Independent Ice Cream Giant
The demerger establishes what is now the world's biggest independent ice cream business.
Magnum's shares started with an opening price of 12.20 euros on its first day on the market, slightly below the expected initial price but later recover ending the day up by a 1.3% increase.
