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Owner Drops Ben & Jerry’s Ice Cream Brand Due to Woke Stance

Source: Flickr/benjerry.fr

The owner of Ben and Jerry’s, Unilever, announced plans to depart from its ice cream division.  Unilever has been making and distributing ice cream all over the world for more than 100 years. This separation will make the company’s ice cream division into its own standalone business. Unilever also revealed that a sale of this division could be possible in the future.

Restructuring Unilever

Unilever’s latest announcement coincides with the corporation’s plan to restructure a lot of its businesses. It is anticipated that the move will save the company approximately $870 million.

Source: Unsplash/Akshay Bandre

While best known for its hang in some of the most popular ice cream brands, the company also owns popular brands like Dove soap,Tre Semme shampoo, and Hellmann’s mayonnaise.

Ice Cream And Unilever 

Unilever bought Wall’s in 1922 and launched itself into the ice cream business. Since then, the corporation has acquired many other frozen treat brands and businesses.

Source: Unsplash/Lama Roscu

Unilever bought Breyers in 1993, and seven years after that it acquired Ben and Jerry’s. Currently the company owns 10 ice cream brands all over the world. 

Emerging Ice Cream Division

The newly established ice cream division will operate as a completely separate business. This divide will encompass all of the frozen treat brands that Unilever currently owns.

Source: Unsplash/Courtney Cook

Items from Ben and Jerry’s, Wall’s, Breyers, Klondike, Magnum, and Popsicle will all be included in this part of the sector. 

Ben and Jerry’s And Unilever 

While Ben and Jerry’s was once a huge asset to Unilever, the relationship between the two companies has deteriorated in recent years.

Source: Unsplash/Hybrid Storytellers

This hit the public eye when Ben and Jerry’s filed a lawsuit against Unilever in 2022.

Layoffs Are Inevitable 

When addressing this new standalone business, Unilever made the suggestion that its ice cream division will undergo a separate entity. However they also announced that layoffs will be inevitable.

Source: Unsplash/CHUTTERSNAP

It is possible that approximately 7,500 jobs could be affected by this business move. By laying off these workers, the company strives to hit that $870 million in savings

The Lawsuit Against Ben and Jerry’s 

The Ben and Jerry’s lawsuit took place after Unilever agreed to sell its business in Israel. Unilever did not seek out any form of consultation from the ice cream brand when it made this decision.

Source: Unsplash/Cristi Ursea

This also occurred right around the time Ben and Jerry’s stopped the sale of their products in Jewish settlements in the contested area of East Jerusalem, as well as in the Israeli-occupied West Bank.

The Settlement

Ben and Jerry’s settled with Unilever In December 2022. Despite this the issues between the brand and its parent company remained. Arguments between the two would eventually become public.

Source: Unsplash/Nas Mato

Most recently, a public dispute transpired when billionaire Nelson Peltz got on Unilever’s board while also holding a position at the Simon Wiesenthal Center. Previously the center had announced a boycott of Ben and Jerry’s over their comments denouncing what Israel was doing in Gaza.  

Ongoing Battle

Ben and Jerry’s was not fond of the idea that Peltz would be joining the Unilever board. 

Source: Unsplash/TSI

It was assumed that the issue was resolved after Peltz officially resigned from his position at the Wiesenthal Center. However, now that Ben and Jerry’s and other ice cream brands are heading to their own division, it’s possible that bad blood will still play a role.  

Shifts In Consumer Habits 

While Unilever has faced significant issues with brands like Ben and Jerry’s, other issues have also come to light with the sale of ice cream. Overall sales of the corporation’s ice cream products have only sluggishly risen.

Source: Unsplash/Courtney Cook

Several factors contributed to this lack of beneficial rise in sales. New studies have shown that a decrease in sales could be a direct result of weight loss drugs like Ozempic.  

Some Individuals Aren’t Buying Ice Cream

Consumers using these weight loss drugs aren’t buying products like ice cream. Instead they are opting for healthier sweet treats like yogurt. 

Source: Unsplash/Annemarie Grudën

Since the Ozempic fad doesn’t appear to be slowing down any time soon, ice cream brands will likely have to find a new way to provide sweet treats that are also healthy. 

Transformations Within the Ice Cream Industry

Unilever is not the only player in the ice cream industry that is being affected. The industry in its entirety is facing a variety of challenges, especially in the last few years. 

Source: Unsplash/Erwan Hesry

Nestlé recently revealed in 2019 that it was going to sell its ice cream businesses. Nestlé used to own popular brands such as Dreyer’s and Häagen-Dazs.

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Written by Athena Hallet

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