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

Ben & Jerry’s is suing dad or mum enterprise Unilever to quit the sale of its Israeli business to a nearby licensee, a transfer the buyer products huge reported would keep the ice product solutions readily available in Israel and its occupied territories.

Ben & Jerry’s mentioned in a lawsuit submitted in federal courtroom in New York Tuesday that Unilever’s conclusion was produced without having the approval of its impartial board, which has the key duty for safeguarding the integrity of its brand’s title.

A choose on Tuesday denied Ben & Jerry’s software for a short-term restraining get but requested Unilever to show result in by July 14 for why a preliminary injunction really should not be issued. 

Representatives for Unilever and Ben & Jerry’s did not promptly react to requests for remark.

The go well with marks the latest progress in a controversy that was set off previous year when Ben & Jerry’s stated it would quit income in the West Bank territory occupied by Israel considering the fact that the 6 Working day war in 1967.

Israel’s govt sees the occupied territories as part of its financial state and any efforts to boycott enterprise in the spots are observed as implementing to the country. Stopping revenue of the ice cream in the occupied territories would have finished gross sales all over Israel.

In its suit, Ben & Jerry’s said that its model is “synonymous with social activism” and that as element of its offer to be obtained by Unilever in 2000, it experienced reserved the “primary obligation for safeguarding the integrity” of the Ben & Jerry’s brand as a result of its unbiased board.

It said that Unilever experienced publicly regarded the brand’s correct to make choices about its social mission. But then past 7 days, Ben & Jerry’s stated Unilever “abruptly reversed course.” 

Unilever introduced final 7 days that it marketed the Israeli branch of its Ben & Jerry’s company to American Quality Merchandise, which licenses the ice cream products in Israel. American Good quality mentioned it would continue marketing Ben & Jerry’s under Hebrew and Arabic names all over Israel and its occupied territories. 

Despite the appropriate of Ben & Jerry’s impartial board to make choices about the brand’s social mission, Unilever mentioned in saying the sale that it had the ideal to enter into the agreement simply because it had reserved primary obligation for economical and operational decisions.

Immediately after Unilever announced the sale, Ben & Jerry’s claimed in its lawsuit that its board held a special meeting on Friday and voted to sue over the final decision.

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

— CNBC’s Candice Choi contributed to this report.