Ben & Jerry’s accuses Unilever of muzzling it | Stock News

By Jessica DiNapoli and Jonathan Stempel

NEW YORK (Reuters) – Ben & Jerry’s on Friday ratcheted up its censorship lawsuit towards Unilever (LON:), accusing its guardian company of suppressing a social coverage assertion the U.S. ice cream maker wished to release as a result of it talked about President Donald Trump.

The allegation got here in an amended grievance filed in Manhattan federal court docket, the place Ben & Jerry’s in November accused Unilever of silencing its makes an attempt to specific help for Palestinian refugees and finish army assist to Israel, and threatening to dismantle its impartial board.

Ben & Jerry’s desires a court docket order liberating the board to proceed oversight of its social mission, and requiring Unilever to honor its dedication to make $25 million of funds to teams chosen by the ice cream company.

Unilever didn’t instantly reply to requests for remark.

Each firms have been publicly at odds since 2021 when Ben & Jerry’s determined to stop promoting Cherry Garcia, Chubby Hubby and different ice cream flavors within the Israeli-occupied West Financial institution as a result of it was inconsistent with the company’s values.

That led some buyers to divest Unilever shares, and Ben & Jerry’s to sue its guardian for promoting its Israeli business to a native licensee.

A settlement in 2022 required Unilever to respect Ben & Jerry’s impartial board and social mission, in addition to make the $25 million of funds.

DONALD TRUMP, NELSON PELTZ AND ELON MUSK

Within the amended grievance, Ben & Jerry’s stated its management and board, with enter from Unilever’s world head of litigation, labored after Trump’s election on a post to be launched on Inauguration Day, discussing hot-button points akin to abortion, climate change, minimal wages and common healthcare.

However on Jan. 18, two days earlier than Trump’s inauguration, Unilever ice cream chief Peter ter Kulve “unilaterally barred Ben & Jerry’s from issuing the post because it specifically mentioned ‘Donald Trump,'” the grievance stated.

Ben & Jerry’s stated ter Kulve appeared to base his resolution on instinct, whereas ignoring the company’s historical past of difficult the Trump administration.

It additionally stated ter Kulve quickly held a city corridor assembly the place he touted how Unilever board member and activist investor Nelson Peltz, a Trump supporter, had launched the president to Elon Musk, the Tesla (NASDAQ:) founder and close Trump adviser.

The grievance stated that in line with ter Kulve, “despite four decades of progressive social activism–and years of challenging the Trump administration’s policies specifically–criticizing Trump was now too taboo for the brand synonymous with ‘Peace, Love, and Ice Cream.'”

Many firms in retail, banking and different sectors have curtailed help this month for applications whose perceived social influence has drawn opposition from Trump and his supporters.

RESISTANCE TO PAYMENTS

Ben & Jerry’s was based by Ben Cohen and Jerry Greenfield in a renovated gasoline station in 1978, and saved its socially-conscious mission after Unilever purchased it in 2000.

In response to the amended grievance, Ben & Jerry’s deliberate to direct $5 million from Unilever to human rights teams, and $20 million over 10 years to help Palestinian almond farmers and a truthful trade almond provider it had long used.

It stated Unilever opposed the $5 million of funds as a result of it believed they might help “Palestinian human rights,” and has not made the second $2.5 million installment.

Ben & Jerry’s additionally stated ter Kulve resisted the $20 million cost as a result of he disliked the 2022 settlement and had not heard of the almond provider.

Unilever plans to spin out its ice cream business this 12 months to simplify its product portfolio and cut prices.

Its dozens of different merchandise embody Dove cleaning soap, Hellmann’s mayonnaise, Knorr bouillon cubes, Surf detergent and Vaseline petroleum jelly.