Unilever ‘resolves’ dispute with subsidiary Ben & Jerry’s

Unilever has announced that the litigation with its subsidiary Ben & Jerry’s, whose independent board has challenged the parent firm over the decision allowing its ice cream to be sold in the Israeli-occupied West Bank, has been resolved.

The London-based consumer goods major didn’t divulge details of the resolution.

Ben & Jerry’s sued Unilever on July 5, saying the sale of its Israeli business to local licensee Avi Zinger violated the agreement under which Unilever bought the Burlington, Vermont-based company in 2000.

The sale came nearly a year after Ben & Jerry’s decided to end sales in Israeli-occupied Palestinian territories, saying it was “inconsistent” with the values and social mission it retained the right to promote.

In August, a US court has rejected Ben & Jerry’s attempt to block the distribution of its products in the occupied territories, noting that the brand did not deserve an injunction to halt ice cream sales and marketing because it did not show it would suffer irreparable harm, or that customers would be confused.

Unilever then contended that Ben & Jerry’s had no power to stop the sale of the Israeli business, and the sale could not be undone because it had closed in late June.

The unusual dispute has shone a spotlight on Unilever’s goal of giving its more than 400 brands social missions and purpose.