In a move that resolves a significant corporate impasse, Unilever has finalised the sale of the iconic Ben & Jerry's ice cream business to its existing licensee in Israel. The deal transfers the brand's operations in the country to its longstanding manufacturing and distribution partner, Avi Zinger of American Quality Products Ltd, which is principally owned by the private equity firm Greenfield Partners.
The sale concludes a bitter two-year dispute that erupted in 2021 when Ben & Jerry's independent board announced it would halt sales in the "Occupied Palestinian Territory". This decision placed its parent company, Unilever, in a direct confrontation with over 35 U.S. states that have enacted anti-Boycott, Divestment, Sanctions (BDS) laws. These laws prohibit state investments in or contracts with companies that boycott Israel.
Unilever stated the agreement ensures Ben & Jerry's ice cream will remain available to all consumers in Israel and the West Bank under the same brand. A company spokesperson emphasised that the deal was the result of extensive negotiations and aligns with Unilever's commitment to its business stakeholders.
The acquisition by Greenfield Partners effectively severs the connection between Ben & Jerry's social justice-focused founders and its Israeli operations. The brand's founders have been vocal critics of Israeli policy, making this corporate clash inevitable. Unilever's structure, which granted Ben & Jerry's an unusual degree of autonomy over its social mission, ultimately created an untenable situation for the multinational conglomerate.
This resolution allows Unilever to extricate itself from a major political and legal headache while ensuring the brand's continued presence in the Israeli market. For Ben & Jerry's, it marks the end of its direct influence over business operations in the region.
