Ben & Jerry’s Co-Founder Claims Parent Company Unilever Ousted CEO Over Palestinian Support
Ben & Jerry’s co-founder Jerry Greenfield has alleged that former CEO Matthew McCarthy was dismissed by parent company Unilever due to his stance on Palestinian rights. In an interview with The Guardian, Greenfield claimed McCarthy was removed after supporting the ice cream brand’s decision to halt sales in Israeli-occupied territories, a stance that sparked significant political and legal backlash.
Controversy Over West Bank Sales
Ben & Jerry’s, known for its social activism, announced in 2021 that it would stop selling ice cream in Israeli settlements in the West Bank—territories widely regarded as illegally occupied under international law. The move triggered condemnation from Israeli officials and pro-Israel groups, leading to lawsuits and political pressure on Unilever.
Unilever responded by transferring the operations of Ben & Jerry’s in Israel to a local franchise, allowing the continued sale of the brand’s products in the region. Ben & Jerry’s board opposed the decision, arguing it undermined the brand’s independence.
Unilever Denies Political Influence
Unilever has refuted Greenfield’s allegations, stating that McCarthy’s departure was unrelated to Ben & Jerry’s stance on Palestine. The consumer goods giant emphasized that CEO transitions are routine business decisions and insisted that McCarthy’s exit was “completely unrelated to Israel.”
The company also reiterated its respect for Ben & Jerry’s social mission while maintaining legal control over key business operations following its acquisition of the brand in 2000.
Industry Implications
The dispute highlights the complexities global corporations face when balancing brand activism with shareholder and political pressures. Unilever’s handling of Ben & Jerry’s advocacy efforts raises broader questions about corporate governance, brand independence, and the consequences of taking firm political positions.
For FMCG professionals, the case underscores the tensions between brand identity and corporate control, particularly when it comes to navigating politically sensitive issues. With increasing consumer demand for ethical business practices, companies must carefully manage social activism without jeopardizing commercial interests.
While Ben & Jerry’s continues to champion its progressive values, this high-profile conflict with its parent company signals the challenges brands may face when activism intersects with corporate strategy.