Ben & Jerry’s accuses Unilever of muzzling it due to Trump

By Jessica DiNapoli and Jonathan Stempel

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

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

Ben & Jerry’s needs a courtroom 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 firm.

Unilever and Ben & Jerry’s didn’t instantly reply to requests for remark.

Each corporations have been publicly at odds since 2021 when Ben & Jerry’s determined to cease 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 corporate’s values.

That led some traders to divest Unilever shares, and Ben & Jerry’s to sue its father or mother for promoting its Israeli enterprise to a neighborhood 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.

London-based Unilever since then introduced plans to spin out its ice cream enterprise, together with Ben & Jerry’s, to simplify its product portfolio and lower prices. The lawsuit, nevertheless, might complicate these plans.

“It doesn’t assist it, as a result of anytime you’ve gotten a cloud over it, it makes it more durable to both promote it or spin it out. It impacts people’ interpretation of its worth,” mentioned Charles Elson, a retired College of Delaware legislation professor and a company governance skilled.

DONALD TRUMP, NELSON PELTZ AND ELON MUSK

Within the amended grievance, Ben & Jerry’s mentioned its administration and board, with enter from Unilever’s world head of litigation, labored after Trump’s election on a publish to be launched on Inauguration Day, discussing hot-button points comparable to abortion, local weather 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 publish as a result of it particularly talked about ‘Donald Trump,'” the grievance mentioned.

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

It additionally mentioned 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:TSLA) founder and shut Trump adviser.

The grievance mentioned that in accordance with ter Kulve, “regardless of 4 many years of progressive social activism–and years of difficult the Trump administration’s insurance policies specifically–criticizing Trump was now too taboo for the model synonymous with ‘Peace, Love, and Ice Cream.'”

Many corporations in retail, banking and different sectors have curtailed assist this month for packages whose perceived social affect 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 stored its socially aware mission after Unilever purchased it in 2000.

In line with the amended grievance, Ben & Jerry’s deliberate to direct $5 million from Unilever to human rights teams, and $20 million over 10 years to assist Palestinian almond farmers and a good commerce almond provider it had lengthy used.

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

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

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