Unilever May Cut Funding to Ben & Jerry’s Foundation Amid Governance Dispute
Unilever is reportedly considering pulling financial support from the Ben & Jerry’s Foundation, according to sources familiar with the matter. The potential move follows an intensifying conflict over the ice cream brand’s governance structure, particularly the extent of control its independent board has over social mission decisions.
The Ben & Jerry’s Foundation, which funds progressive causes and holds a 501(c)(3) nonprofit status, receives a significant portion of its finances from Unilever. In 2022, the Foundation reported over $4 million in revenue—approximately $2.6 million of which came from Ben & Jerry’s corporate profits allocated by Unilever. That funding is now under review.
At the core of the tension is the governance model established in 2000, when Unilever acquired Ben & Jerry’s. While Unilever owns the brand, the acquisition agreement gave the Ben & Jerry’s independent board authority over social mission decisions. However, the board has increasingly pushed for greater independence, including seeking to amend its legal structure to cement autonomy, according to people familiar with the matter.
The situation escalated in 2022 when Ben & Jerry’s attempted to block the sale of its products in Israeli settlements, citing objections on human rights grounds. Unilever overruled the decision by selling the Israeli business to a local licensee, prompting a legal battle filed by Ben & Jerry’s and its independent board. The dispute ended in a settlement, but tensions have since lingered.
The potential withdrawal of funding could significantly impact the Foundation’s operations, which support a wide range of social justice initiatives, including racial equity and environmental advocacy. It also brings into focus broader questions for FMCG players balancing corporate governance, brand identity, and stakeholder expectations.
Unilever has declined to comment on the discussions, while representatives from Ben & Jerry’s and the Foundation have not issued official statements. However, industry observers note this situation underscores complex challenges in maintaining brand purpose and activist roots within multinational ownership structures.
For FMCG brands navigating similar tensions between acquired brand autonomy and corporate oversight, the Ben & Jerry’s-Unilever standoff serves as a cautionary tale about the risks of misaligned mission priorities and the financial consequences that may follow.