Ben & Jerry’s co-founders, Ben Cohen and Jerry Greenfield, are in discussions to separate their ice cream brand from its current owner, Magnum Ice Cream, a subsidiary of Unilever. According to a report by the Wall Street Journal, the founders are considering a partnership with Pete Stavros, founder of Expanding ESOPs, to transition the company to an employee stock ownership plan (ESOP), which would allow employees to acquire stock while also gaining potential tax advantages.
However, any potential separation would require approval from Magnum, which currently maintains that “Ben & Jerry’s is not for sale” and asserts that the brand is thriving within the Magnum structure. The company expressed concerns that removing Ben & Jerry’s from its portfolio could lead to operational inefficiencies, reduced investment in social missions, and increased prices for consumers.
Ben & Jerry’s is known not only for its unique flavors but also for its strong commitment to social activism. The founders have often found themselves at odds with previous parent company Unilever over various political and ethical issues. Additionally, Magnum has aimed to lessen the influence of Ben & Jerry’s independent board, which has now been reduced to just two members.
Cohen indicated that generating public pressure might be their strategy to encourage Magnum to facilitate a sale. As of now, neither Ben & Jerry’s nor the co-founders have commented further on the negotiations.
Why this story matters
- Potential implications for employee ownership models in the corporate sector.
Key takeaway
- The co-founders’ pursuit of an employee stock ownership plan highlights ongoing tensions between social missions and corporate structure.
Opposing viewpoint
- Magnum argues that separation could harm the company’s efficiency and its commitment to social initiatives.
