The ongoing conflict between Ben & Jerry’s and its new parent company, Magnum Ice Cream Company, intensified this week when Magnum accused the brand’s former board chair, Anuradha Mittal, of serious misconduct. The situation escalated as Magnum revealed that Ben & Jerry’s board had shrunk dramatically from eight members to just two.
Magnum, which took over Ben & Jerry’s after Unilever spun off its ice cream unit in December 2023, claims that Mittal’s actions rendered her unfit to serve on the board. The former chair was removed in mid-December, coinciding with Magnum’s decision to implement nine-year term limits for directors. Currently, only the Ben & Jerry’s CEO and a Unilever appointee remain on the board.
In a filing dated January 20, 2024, in a U.S. District Court in New York, Magnum stated that an audit by Ernst & Young raised concerns about conflicts of interest involving the Ben & Jerry’s Foundation. The foundation is a separate U.S. non-profit funded by the brand. Magnum noted that none of the three independent directors would certify compliance with its business integrity code, leading to their departure from the board as of January 1.
Mittal has publicly challenged Magnum and Unilever, claiming they are attempting to discredit her and undermine the board’s authority. In a statement, she criticized the removal of independent directors, describing it as a “midnight purge” that jeopardizes oversight and control over charitable funds. “Magnum’s actions speak for themselves,” she asserted.
In its filing, Magnum expressed regret over the ongoing litigation, stating that it is committed to supporting the Ben & Jerry’s team. The company emphasized its intention to develop a new board with a majority of independent directors, stating, “We look forward to the development of a refreshed Board with a majority of Independent Directors, led by an Independent Director.”
The Ben & Jerry’s Foundation has also voiced concerns, indicating that it has become “collateral damage” in the disputes between the brand and its parent companies. Magnum specifically pointed out that the foundation had distributed grants to organizations where trustees, including Mittal, held significant roles and received compensation or benefits.
The tensions between Ben & Jerry’s and its parent company began to surface in 2021 when the ice cream brand announced it would halt sales in the Israeli-occupied West Bank, marking a significant stance in its social mission. As the legal battle continues, the future direction of Ben & Jerry’s and its commitment to its progressive values remains uncertain.
