The founders of Ben and Jerry’s accused Unilever PLC (LSE:ULVR) (Unilever PLC (LSE:ULVR)) of violating a 22-year old agreement that could see the eponymous ice-cream sold in the occupied West Bank.
Ben Cohen and Jerry Greenfield, who founded the company in 1978 with a mission to “advance human rights and dignity”, said they could not “sit idly by” after Unilever sold its interest in the ice-cream to an Israeli licence holder, according to the Guardian.
They claim the move breaks a deal which was brokered when Unilever bought Ben and Jerry’s in 2000 for US$326mln.
“That agreement gave authority over the social mission to the independent board of Ben & Jerry’s,” Cohen said.
“Unilever has usurped their authority and reversed the decision that was made and we can’t allow that to happen, we can’t sit idly by.
“That is essentially saying: ‘Well, the independent board does not matter.’”
Greenfield said the “social mission” agreement “lasts in perpetuity … and must be respected”.
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 core values.
But earlier this year, Unilever agreed to sell the Israeli division of the ice cream business to Avi Zinger, who runs American Quality Products and acted as its local partner to produce and distribute the ice creams.
Unilever has said it retained the right to make operational decisions for Ben & Jerry’s, and that the sale of the licence could not be undone.
Ben & Jerry’s independent board had previously announced that it would not renew a licence with AQP when it expired at the end of the year.
That announcement led to Zinger suing Unilever. The lawsuit was settled upon the sale of the licence.
In July, Ben & Jerry’s sued Unilever alleging the licence sale violated the terms of 2000 takeover agreement. But last month, a US district judge denied Ben & Jerry’s request for a preliminary injunction blocking the licensee deal.
Ben & Jerry’s said earlier this month that it planned to amend its lawsuit challenging the sale. Unilever must respond by 1 November.