Ben & Jerry's battle with Unilever over operations in Israel continues and provides a wake-up call for purpose-led brands.
Unilever purchased Ben & Jerry's in 2000 for US$326 million with a caveat not often seen in such acquisitions - the ice cream maker retains an independent board of directors to guide the company's social and political identity.
Ben & Jerry's took Unilever to court on July 5 after they sold Israeli operations to American Quality Products Ltd when it did not align with the company values, even though the sale of operations went through on June 29. A ruling on the case is expected soon.
The conflict brings a vital message to purpose-led brands in being vigilant when undertaking financial deals. They must also look at the future of a brand and ensure there are no potential conflicts.
Gary Hirshberg who co-founded the yoghurt brand Stonyfield which he sold to French dairy group Lactalis has said that this case is a classic example of a difference between cultures. Entrepreneurs should not rely on publicly-traded buyers to see out social missions when executive teams consistently change.
Tobias Read, the treasurer of Oregon, has said that the dispute shows the contrasting obligations purpose-led brands have when they become part of a publicly listed company. Founders need to consider what they are acquiring and what they are giving up.
Lush Ethics director has said that for the vegetarian, cruelty-free and handmade beauty products, a financial return will never be exchanged for independence. Brands need to be incredibly aware of how to implement long-term missions without compromise.
