Ben & Jerry’s sues parent Unilever to block sale of Israeli business to Israeli firm

New York (QNN)- Ben & Jerry’s on Tuesday sued its parent Unilever Plc in an effort to block the sale of its Israeli business to an Israeli licensee, stressing it was inconsistent with its values to sell its ice cream in the occupied West Bank.
Filed in the U.S. District Court in Manhattan, the complaint said the sale announced on June 29 threatened to undermine the integrity of the Ben & Jerry’s brand, which Ben & Jerry’s board retained independence to protect when Unilever acquired the company in 2000.
An injunction against transferring the business and related trademarks to Avi Zinger, who runs American Quality Products Ltd, was essential to “protect the brand and social integrity Ben & Jerry’s has spent decades building,” the complaint said.
Ben & Jerry’s said its board voted 5-2 to sue, with the two Unilever appointees dissenting.
Unilever, in a statement, said it does not discuss pending litigation, but that it had the right to sell the disputed business and the transaction had already closed.
“It’s a done deal,” Zinger’s lawyer Alyza Lewin said in a separate statement. The sale resolved Zinger’s own lawsuit in March against Ben & Jerry’s for refusing to renew his license.
Last year in July, the well-known American firm announced it will no longer sell its products in occupied Palestinian territories, sparking backlash including divestments by at least six U.S. pension funds.
The company had said in a statement that “it is inconsistent with our values for Ben & Jerry’s ice cream to be sold in the Occupied Palestinian Territory (OPT).”
The decision was one of the highest-profile boycotts by a well-known brand of Israel’s illegal settlements, which are considered as illegal under international law.
On June 29, Unilever announced that it had “sold its Ben & Jerry’s business interests in Israel to Avi Zinger, the owner of American Quality Products Ltd (AQP),” the current Israeli licensee for Ben & Jerry’s.
Zinger had sued Ben & Jerry’s after its decision in the occupied West Bank, claiming the company illegally severed their 34-year relationship.
With the new arrangement, Ben & Jerry’s ice cream will be sold to all consumers in ‘Israel’ and the occupied West Bank, including in illegal Israeli settlements.
Ben & Jerry’s ice cream also cannot be sold in ‘Israel’ using the name of Unilever or the original branding, as per the new arrangement. The Israeli licensee will instead sell the product with Hebrew and Arabic labelling.
“Unilever has used the opportunity of the past year to listen to perspectives on this complex and sensitive matter and believes this is the best outcome for Ben & Jerry’s in Israel,” it said in a statement.
“The review included extensive consultation over several months, including with the Israeli government.”
It added that it rejected antisemitism, and had never endorsed the pro-Palestinian boycott, divestment, sanctions campaign: “We have never expressed any support for the Boycott Divestment Sanctions (BDS) movement and have no intention of changing that position.”
“The new arrangement means Ben & Jerry’s will be sold under its Hebrew and Arabic names throughout Israel and the West Bank under the full ownership of its current licensee,” Unilever added.
The parent company also acknowledges that “Ben & Jerry’s and its independent board were granted rights to take decisions about its social mission, but Unilever reserved primary responsibility for financial and operational decisions and therefore has the right to enter this arrangement.”
The same day, Ben & Jerry’s blasted Unilever for selling the Vermont-based firm’s business in ‘Israel’ to an Israeli licensee, stressing it did not agree with the decision and found it ‘inconsistent’ with its values.
“We are aware of the Unilever announcement. While our parent company has taken this decision, we do not agree with it,” the ice cream firm tweeted on Wednesday.
“Unilever’s arrangement means Ben & Jerry’s in Israel will be owned and operated by AQP. Our company will no longer profit from Ben & Jerry’s in Israel.”
“We continue to believe it is inconsistent with Ben & Jerry’s values for our ice cream to be sold in the Occupied Palestinian Territory.”