Ice cream brand Ben & Jerry’s has sued its parent company Unilever PLC (LSE:ULVR) as it looks to block the sale of its Israeli businesses to a local licensee.
A complaint was filed to the US district court in Manhattan, with Ben & Jerry’s saying the sale threatened to undermine the integrity of its brand.
Last year, Ben & Jerry’s said it would end sales in the occupied West Bank and parts of East Jerusalem as it was inconsistent with its values.
Last week, Unilever agreed to sell the Israeli business to Avi Zinger, who runs American Quality Products and acted as its local partner to produce and distribute the ice creams, to remove itself from the ongoing row over sales in the region.
Under the agreement between Unilever and American Quality Products, ice cream with the same flavours and similar artwork would continue to be sold, but only using the Hebrew and Arabic version of the brand names.
The board of Ben & Jerry’s, which retained independence after Unilever’s takeover in 2000, voted 5-2 in favour to sue, with the two Unilever appointees voting against the action.