Ben & Jerry’s could be scooped up by a new owner. Will its progressive activism hold it back?

The Boston Globe reported that Ben & Jerry’s, the iconic ice cream brand known for its quirky flavors and progressive social stances, has reached a pivotal moment as Unilever, its parent company since 2000, announced plans to spin off its ice cream business into a standalone entity. This move raises questions about Ben & Jerry’s future, with speculation from retail analyst Carol Spieckerman about a potential sale of the brand.

Spieckerman, president of Spieckerman Retail, has suggested that Ben & Jerry's may become a "hot potato" for Unilever. She posits that Unilever is likely setting up Ben & Jerry's for sale, as the brand's strong political voice on issues from climate change to human rights, embedded in its B Corp status, has presented challenges alongside its commercial success.

Founded by Ben Cohen and Jerry Greenfield, Ben & Jerry's has long been intertwined with activism, a characteristic that has become both a defining trait and a source of contention. The brand's political actions, such as its stance on Israeli settlements in the West Bank and East Jerusalem, have led to a legal dispute with Unilever, highlighting the complexities of maintaining corporate responsibility while under the umbrella of a global conglomerate.

Unilever’s recent restructuring, including the proposed spinoff which may result in the cutting of 7,500 jobs, does not specifically cite the politics of Ben & Jerry's as a reason. However, analysts like Spieckerman see it as an underlying factor, especially in the context of heightened geopolitical tensions and rising costs in the premium ice cream segment.

The restructuring is expected to streamline Unilever's operations, possibly impacting Ben & Jerry's, which reported over $900 million in sales in 2022. Despite controversies, the brand maintains its market strength, though its independent board structure and B Corp status could affect investor interest in the spun-off ice cream business.

In the face of these changes, Ben & Jerry's has affirmed its dedication to its mission, indicating that it will continue to champion its social values regardless of new ownership dynamics. The possibility remains for the founders or other executives to buy back the company, with Spieckerman's insights underscoring the delicate balance between maintaining brand integrity and navigating the demands of the market and ownership structures.