Unilever threatened with legal action as Ben & Jerry’s pulls out of Israeli-occupied territories

20 Jul 2021 --- Israel’s prime minister has warned Unilever of “severe consequences” after its subsidiary Ben & Jerry’s has decided to stop selling ice cream in the Occupied Palestinian Territory (OPT). Having held talks with Unilever CEO Alan Jope, prime minister Naftali Bennett brands this as an “anti-Israel” step, stating it amounts to a boycott of Israel.

However, Ben & Jerry’s believes it is “inconsistent with our values” for the ice cream to be sold in the OPT.

“We also hear and recognize the concerns shared with us by our fans and trusted partners,” says a Ben & Jerry’s statement. 

“We have a longstanding partnership with our licensee, who manufactures Ben & Jerry’s ice cream in Israel and distributes it in the region. We have been working to change this, and so we have informed our licensee that we will not renew the license agreement when it expires at the end of next year,” the statement continues. 

Ben & Jerry’s was sold in 2000 to the British multinational consumer goods company, and it now operates as a fully owned subsidiary of Unilever.

Legal consequences?
Although Ben & Jerry’s will no longer be sold in the OPT, the brand will stay in Israel through a different arrangement, it says. “We will share an update on this as soon as we’re ready,” the statement concludes.

A statement from Bennett’s office today reads: “Bennett made it clear that he views with utmost gravity the decision by Ben & Jerry’s to boycott Israel and adds that this is a subsidiary of Unilever, which has taken a clearly anti-Israel step.”

“Bennett emphasized that from the perspective of the State of Israel, this is an action that has severe consequences, including legal, and it will take strong action against any boycott directed against its citizens.”

Sensitive situation 
Founded in 1978 in Burlington, Vermont, Ben & Jerry’s was sold in 2000 to the British multinational consumer goods company, and it now operates as a fully owned subsidiary of Unilever. 

Ben & Jerry's has production facilities in Be'er Tuvia, Israel.

Unilever has also released a statement on Ben & Jerry’s decision.

“The Israeli-Palestinian conflict is a very complex and sensitive situation. As a global company, Unilever’s brands are available in more than 190 countries, and in all of them, our priority is to serve consumers with essential products that contribute to their health, well-being and enjoyment,” it says. 

“We remain fully committed to our presence in Israel, where we have invested in our people, brands and business for several decades.”

In addition, Unilever points out that as part of the acquisition agreement with Ben & Jerry’s, it has always recognized the right of the brand and its independent Board to take decisions about its social mission. 

“We also welcome the fact that Ben & Jerry’s will stay in Israel,” the statement concludes. 

By Gaynor Selby