Removed Ben & Jerry’s Chair Accuses Magnum of Attempting to ‘Smear’ Her
– Anuradha Mittal, the ousted chair of Ben & Jerry’s, has publicly accused Magnum, the company that owns the ice cream brand, of threatening a smear campaign against her.
– Mittal, who led Ben & Jerry’s independent board for seven years, shared her concerns with the BBC, stating that Magnum suggested they would release defamatory statements if she did not resign from her position.
– This incident has escalated tensions in an ongoing dispute involving the Vermont-based ice cream maker’s independence and its commitment to social missions.
– Magnum claims Mittal no longer met the criteria to serve on the board, after a review conducted by external advisors.
– In a statement released on Monday, Magnum announced several changes to the board’s operations, including a nine-year term limit for board members.
– Along with Mittal’s removal, two additional board members will be stepping down as part of these changes.
– Additionally, an audit of the Ben & Jerry’s Foundation, a charitable organization, revealed significant deficiencies in financial controls, governance, and conflicts of interest.
The Fallout from the Ben & Jerry’s-Magnum Dispute
– Speaking on the BBC’s World Business Report, Mittal highlighted the intensifying friction between Ben & Jerry’s and its new owner over the ice cream brand’s independence and integrity.
– “For several years now, we have been resisting their overreach, including attempts to silence our voices on issues of human rights and peace,” she stated.
– The beloved brand, known for its whimsical flavor names, was under Unilever’s ownership until recently. Unilever spun off its ice cream division, which includes Magnum, creating a new entity, the Magnum Ice Cream Company.
– Ben & Jerry’s, sold to Unilever in 2000, was allowed to maintain an independent board and make decisions regarding its social mission, often leading to friction with its parent company.
– In 2021, Ben & Jerry’s made headlines by refusing to sell ice cream in areas occupied by Israel, prompting Unilever to sell its Israeli operation to a local licensee.
– This contentious history has now been inherited by Magnum, culminating in the recent removal of Mittal.
– Mittal recounted that in October, “Unilever-Magnum executives threatened me with defamatory statements in their forthcoming prospectus if I did not resign,” adding that they offered her a prominent role in a multimillion-dollar Unilever-funded nonprofit in exchange for her resignation, which she deemed “inappropriate” and declined.
Magnum’s Corporate Governance Changes
– Magnum has now positioned itself as the world’s largest ice cream maker, with a portfolio that includes well-known brands like Cornetto, Wall’s, and Carte D’Or.
– Mittal, founder of the Oakland Institute—a human rights and development think tank—described Magnum’s strategy as a public smear campaign, insisting that the allegations against her are baseless.
– Jerry Greenfield, one of Ben & Jerry’s original founders, stepped down in September, citing concerns that the brand’s social mission was being suppressed.
– His co-founder, Ben Cohen, has also criticized Magnum, asserting it is not fit to own the company.
– In a statement, a spokesperson for Magnum emphasized that these changes are designed to strengthen corporate governance and reaffirm the responsibilities of the Ben & Jerry’s Board.
– “These actions aim to preserve and enhance the brand’s historical social mission and safeguard its essential integrity,” the spokesperson added.
– Since its inception in 1978, Ben & Jerry’s has stood out with unique flavors like Cherry Garcia and Bohemian Raspberry.
– Magnum reasserted its commitment to Ben & Jerry’s three-part mission: product, economic, and social, declaring its dedication to progressive, non-partisan values.
– “Ben & Jerry’s continues to advocate for a range of causes and serves as a bold voice for social justice, as evident from its social media channels,” stated Magnum.
As the tensions unfold, the implications for Ben & Jerry’s brand identity and social mission remain to be seen.