Ben & Jerry's founders consider repurchasing ice-cream brand from Unilever
What's the story
The co-founders of popular ice cream brand, Ben & Jerry's, are mulling repurchasing their company from Unilever.
The move comes amid allegations that the parent corporation is meddling with their progressive political stance.
Ben Cohen and Jerry Greenfield, now aged 73, sold their namesake ice cream business to Unilever for $326 million in 2000.
The multinational corporation also owns other ice cream brands like Breyers and Magnum.
Corporate strategy
Unilever's plans for Ben & Jerry's amid cost-cutting measures
Despite the interest from the founders to repurchase, Unilever has said that it doesn't plan to sell the profitable ice cream business.
Instead, as part of a cost-cutting drive, the company plans to separate Ben & Jerry's through a demerger.
It is expected that this spin-off will become a publicly traded entity with listings in Amsterdam, London, and New York.
Financial outlook
Ben & Jerry's potential market value and sales performance
The potential market value of Ben & Jerry's could run into several billion dollars, meaning Cohen and Greenfield would require a lot of financial backing to go ahead with a buyback.
The ice cream brand posted impressive sales figures last year, with revenues hitting around $8.72 billion.
The strong financial performance highlights the brand's strong market presence and profitability under Unilever's ownership.
Ideological conflict
Progressive politics and social activism
Ben & Jerry's, a brand famous for its commitment to progressive politics and social justice causes, has had a tumultuous relationship with Unilever in recent years.
Earlier this month, the ice cream company filed a lawsuit alleging that Unilever was trying to dissolve its independent board and cease all social activism.
This included criticism of President Donald Trump, with claims that Unilever had barred them from posting on social media about Trump's inauguration.
Corporate response
Unilever CEO defends actions amid Ben & Jerry's allegations
In light of the allegations, Unilever CEO Peter ter Kulve defended the company's actions as creating a "new dynamic" in an "unprecedented time."
This comes after a previous dispute in 2021 when Ben & Jerry's pledged to stop all sales in the West Bank.
However, Unilever overruled the decision and continued their sale through a local Israeli licensee.