Unilever Considers Halting Ben & Jerry’s Foundation Funding Amid Legal Dispute
FMCG giant Unilever is weighing the suspension of funding to the Ben & Jerry’s Foundation as tensions escalate in an ongoing legal dispute with its subsidiary’s board. This move could sever a longstanding financial tie to the Vermont-based non-profit that champions social and environmental causes.
The conflict originated in 2022 when Ben & Jerry’s sought to block Unilever’s sale of its Israeli operations to a third party, citing inconsistencies with its social mission. The dispute led to a lawsuit and has since intensified, dragging the Foundation into the legal crossfire.
According to court filings, Unilever is evaluating whether continued financial support to the Foundation—estimated at around $3.4 million annually—is required under its existing agreement with Ben & Jerry’s. The Ben & Jerry’s Foundation, formed in 1985, receives an annual 7.5% of the ice cream brand’s profits to fund grants aligned with its progressive values.
The company argues that because the Foundation has reportedly sided with the independent Ben & Jerry’s board in their lawsuit against Unilever, ongoing contributions may not be contractually or ethically necessary. Unilever has also raised concerns over the Foundation’s involvement in lobbying and public discourse, claiming it undermines the parent company’s decision-making authority.
For FMCG stakeholders, this battle signals growing challenges around corporate governance and brand autonomy, especially when mission-led subsidiaries operate under large, publicly traded portfolios. The case highlights the complexities that arise when brand identity and social values intersect with shareholder interests and global strategy.
Unilever’s acquisition of Ben & Jerry’s in 2000 came with an unusual governance framework, allowing the brand’s board to maintain control over its social mission. This precedent-setting deal now poses implications for how other multinationals manage purpose-driven brands within their portfolios.
The legal proceedings continue to evolve, with a Vermont federal court expected to weigh in on the implications of Unilever’s funding obligations. As the FMCG industry increasingly integrates ESG principles and consumer expectations around corporate responsibility rise, the outcome of this case may reshape how multinational players handle brand governance and financial entanglements with socially active arms.