A bath of Ben and Jerry’s ice cream, manufactured by Unilever Plc.
Chris Ratcliffe | Bloomberg | Getty Photos
Ben & Jerry’s is suing guardian firm Unilever to cease the sale of its Israeli enterprise to an area licensee, a transfer the buyer merchandise large mentioned would preserve the ice cream merchandise accessible in Israel and its occupied territories.
Ben & Jerry’s mentioned in a lawsuit filed in federal courtroom in New York Tuesday that Unilever’s choice was made with out the approval of its unbiased board, which has the first accountability for safeguarding the integrity of its model’s title.
A choose on Tuesday denied Ben & Jerry’s utility for a brief restraining order however ordered Unilever to point out trigger by July 14 for why a preliminary injunction shouldn’t be issued.
Representatives for Unilever and Ben & Jerry’s didn’t instantly reply to requests for remark.
The go well with marks the most recent growth in an issue that was set off final yr when Ben & Jerry’s mentioned it might cease gross sales within the West Financial institution territory occupied by Israel for the reason that Six Day warfare in 1967.
Israel’s authorities sees the occupied territories as a part of its financial system and any efforts to boycott enterprise within the areas are seen as making use of to the nation. Stopping gross sales of the ice cream within the occupied territories would have ended gross sales all through Israel.
In its go well with, Ben & Jerry’s mentioned that its model is “synonymous with social activism” and that as a part of its deal to be acquired by Unilever in 2000, it had reserved the “main accountability for safeguarding the integrity” of the Ben & Jerry’s model by its unbiased board.
It mentioned that Unilever had publicly acknowledged the model’s proper to make selections about its social mission. However then final week, Ben & Jerry’s mentioned Unilever “abruptly reversed course.”
Unilever announced last week that it bought the Israeli department of its Ben & Jerry’s enterprise to American High quality Merchandise, which licenses the ice cream merchandise in Israel. American High quality mentioned it might proceed promoting Ben & Jerry’s beneath Hebrew and Arabic names all through Israel and its occupied territories.
Regardless of the proper of Ben & Jerry’s unbiased board to make selections in regards to the model’s social mission, Unilever mentioned in asserting the sale that it had the proper to enter into the settlement as a result of it had reserved main accountability for monetary and operational selections.
After Unilever introduced the sale, Ben & Jerry’s mentioned in its lawsuit that its board held a particular assembly on Friday and voted to sue over the choice.
In an interview with CNBC after final week’s transfer by Unilever the Israeli licensor, Avi Zinger of American High quality Merchandise, mentioned any potential lawsuit could be “between Unilever and Ben & Jerry’s. I have already got a deal.”
— CNBC’s Candice Choi contributed to this report.
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