A tub of Ben & Jerry’s ice cream, manufactured by Unilever plc.
Chris Ratcliffe | Bloomberg | Getty Images
Ben & Jerry’s is suing the parent company Unilever To prevent the sale of its Israeli business to a local licensee, the consumer products giant said ice cream products would continue to be available in Israel and its occupied territories.
Ben & Jerry’s said Tuesday in a lawsuit filed in federal court in New York that Unilever’s decision was made without the approval of its independent board, which has a primary responsibility for protecting the integrity of its brand name.
A judge on Tuesday rejected Ben & Jerry’s application for a temporary restraining order, but ordered Unilever to show cause by July 14 as to why the preliminary injunction should not be issued.
Representatives for Unilever and Ben & Jerry’s did not immediately respond to requests for comment.
The suit marks the latest development in a dispute that began last year when Ben & Jerry’s said it would stop sales in the West Bank region occupied by Israel since the Six-Day War in 1967.
The government of Israel views the occupied territories as part of its economy and any attempt to boycott trade in the territories is seen as being imposed on the country. Stopping the sale of ice cream in the occupied territories would have ended sales throughout Israel.
In its lawsuit, Ben & Jerry’s stated that its brand is “synonymous with social activism” and that as part of the deal to be acquired by Unilever in 2000, it removed Ben & Jerry’s “primary responsibility for protecting integrity”. was kept safe. Brand through its independent board.
It said that Unilever had publicly recognized the right of the brand to make decisions about its social mission. But then last week, Ben & Jerry’s said that Unilever “suddenly reversed.”
Unilever announced last week that it sold American quality products to the Israeli branch of its Ben & Jerry’s business, which licenses ice cream products in Israel. American Quality said it would continue to sell Ben & Jerry’s under the Hebrew and Arabic names throughout Israel and its occupied territories.
Despite the authority of Ben & Jerry’s independent board to make decisions about the brand’s social mission, Unilever announced the sale, stating that it had the right to enter into the agreement as it had primary responsibility for financial and operational decisions. Was.
After Unilever announced the sale, Ben & Jerry’s said in its lawsuit that its board held a special meeting on Friday and voted to sue the decision.
The move by Unilever follows last week’s move by Israeli licensor, Avi Ginger of American Quality Products, Avi Ginger of American Quality Products, said that any potential lawsuit would be “between Unilever and Ben & Jerry’s. I already have a deal.”
— CNBC’s Candice Choi contributed to this report.