Ben & Jerry’s sues parent company Unilever over sale of Israeli business

Ben & Jerry’s is suing parent organization Unilever to stop the sale of its Israeli business to a area licensee, a transfer the consumer items huge claimed would keep the ice product merchandise out there in Israel and its occupied territories.

Ben & Jerry’s reported in a lawsuit filed in federal court docket in New York Tuesday that Unilever’s determination was manufactured without having the acceptance of its independent board, which has the major obligation for safeguarding the integrity of its brand’s title.

A judge on Tuesday denied Ben & Jerry’s application for a temporary restraining order but requested Unilever to exhibit trigger by July 14 for why a preliminary injunction really should not be issued. 

In a statement, Unilever claimed that “the offer has presently shut” and that it does not remark on pending litigation. A Ben & Jerry’s consultant did not reply to a request for comment.

The accommodate marks the latest improvement in a controversy that was set off last calendar year when Ben & Jerry’s explained it would cease revenue in the West Lender territory occupied by Israel considering the fact that the Six Working day war in 1967.

Israel’s government sees the occupied territories as part of its financial state and any attempts to boycott organization in the spots are viewed as making use of to the state. Stopping profits of the ice cream in the occupied territories would have ended income during Israel.

In its suit, Ben & Jerry’s explained that its brand name is “synonymous with social activism” and that as portion of its offer to be acquired by Unilever in 2000, it experienced reserved the “major accountability for safeguarding the integrity” of the Ben & Jerry’s manufacturer by way of its independent board.

It stated that Unilever experienced publicly recognized the brand’s proper to make choices about its social mission. But then last 7 days, Ben & Jerry’s said Unilever “abruptly reversed class.” 

Unilever introduced very last 7 days that it sold the Israeli department of its Ben & Jerry’s business enterprise to American Quality Items, which licenses the ice cream solutions in Israel. American Top quality mentioned it would go on advertising Ben & Jerry’s below Hebrew and Arabic names through Israel and its occupied territories. 

Even with the proper of Ben & Jerry’s impartial board to make selections about the brand’s social mission, Unilever claimed in saying the sale that it experienced the ideal to enter into the agreement simply because it experienced reserved key obligation for money and operational conclusions.

After Unilever announced the sale, Ben & Jerry’s reported in its lawsuit that its board held a exclusive meeting on Friday and voted to sue more than the conclusion.

In an interview with CNBC after last week’s move by Unilever the Israeli licensor, Avi Zinger of American High quality Merchandise, said any potential lawsuit would be “involving Unilever and Ben & Jerry’s. I currently have a offer.”

— CNBC’s Candice Choi contributed to this report.