The Ben and Jerry's Experiment Continues

Since April 2000 when multinational Unilever bought small, values-driven Ben & Jerry’s, the socially responsible business community has been watching to see whether the marriage would last. What impact would Unilever have on one of America’s most trusted brands?

This relationship is already being tested. Referring to the companies’ difference in opinion in who should be Ben & Jerry’s new CEO, Ben Cohen and Jerry Greenfield stated, “We strongly supported a different candidate, a longtime member of Ben and Jerry’s Board of Directors, whose commitment to our social policies was clear and established. As owner, Unilever of course has the legal right to manage Ben and Jerry’s in the way it sees fit. We have not decided whether or not to remain with the company.” What would happen to Ben & Jerry’s without Ben and Jerry?

When Unilever purchased the company they agreed to continue its hallmark progressive practices. The company stayed in Vermont and continues to use rBGH-free milk from local farmers. Ben and Jerry’s foundation is so far continuing to be funded with over a million dollars a year. But Ben & Jerry’s didn’t plan to stop there. They want Unilever to conduct a social/environmental audit of its business. Ben & Jerry’s wants to increase its number of fair trade suppliers. And they want to examine new markets in organic food, starting with ice cream.

When the media caught wind of the rift they compared it to Paul Newman leaving Newman’s Own. Business would more than likely drop without the two founders that are so closely identified with the company. More than that though, an opportunity to mainstream organic products would be lost. “I have always thought that Ben and Jerry’s is the perfect brand to introduce organic to a wider consumer audience.” says Ben Cohen.

Indeed, the next logical step for Ben & Jerry’s growth is to enter the blossoming organic market. It would not only be a huge business opportunity but would also give the founders a new socially responsible market to focus on. Organic dairy is one of the fastest growing sectors in food right now. “Ben and Jerry’s could make a huge difference with an organic line of ice cream, while creating a new product that would appeal to their core customers plus plenty of new ones,” says Katherine DiMatteo, president of the Organic Trade Association. It would be a win-win scenario for Unilever, benefiting customers, farmers and the environment, while building a great new business.”

Source: Alternet.org, “Crisis and Opportunity at Ben and Jerry’s”, by Jim Slama