Unilever and Ben & Jerry’s Resolve Legal Dispute Over Israeli Sales
Unilever and its subsidiary, Ben & Jerry’s, have reached a settlement in their legal dispute regarding the ice cream brand’s attempt to halt sales in Israeli territories. The lawsuit, which was filed in July 2022, stemmed from Ben & Jerry’s opposition to Unilever’s decision to transfer distribution rights to an Israeli licensee.
Background of the Dispute
The conflict began in 2021 when Ben & Jerry’s announced plans to cease product sales in what it referred to as “occupied Palestinian territories,” citing ethical concerns. However, Unilever, which owns Ben & Jerry’s but operates it with an independent board, later sold the Israeli distribution rights to Avi Zinger, the owner of American Quality Products, the local manufacturer and distributor of the brand.
Ben & Jerry’s board argued that this decision violated a pre-existing agreement that allowed them autonomy over the brand’s social mission. In response, they sued Unilever to block the distribution deal, claiming it undermined their ethical stance.
Settlement Reached
Unilever confirmed that a settlement was reached, leading to the lawsuit’s dismissal in December 2022. While specific terms of the agreement remain confidential, the resolution ensures that Ben & Jerry’s will continue to be available in Israel under its local licensee.
Industry Implications
This case highlights the challenges FMCG multinational corporations face when balancing brand autonomy with corporate oversight. Unilever’s handling of Ben & Jerry’s demonstrates the complexities of managing purpose-driven brands with independently governed ethical missions.
The dispute also brings attention to the broader role of social activism in brand strategy. As more FMCG brands integrate ethical and political stances into their identities, tensions between corporate oversight and brand autonomy may become increasingly common.
With the lawsuit resolved, Unilever can focus on stabilizing the brand’s reputation while continuing its broader corporate initiatives. Meanwhile, the case serves as a reminder of how strategic brand management must align with both commercial and ethical considerations.