WATERBURY, Vt. (WCAX) – After 24 years of ownership, Unilever announced plans to cast off Ben and Jerry’s ice cream. Our Sophia Thomas looks into what led the international food giant to get out of the ice cream business and what it means for the iconic Vermont brand.
Unilever, the parent company behind brands like Axe, Dove and Hellmann’s, says the ice cream industry has “distinct characteristics” from its other brands and would grow more under separate ownership.
In a statement to The Associated Press, Unilever said the split will reduce their costs and boost profits.
Unilever is also launching a productivity program based in greater investment in technology. The London-based company says it will save over $800 million over the next three years. It will also cut 7,500 mostly office-based jobs worldwide.
Fritz Burkhardt, a finance professor at Champlain College in Burlington, says the growing price of milk could play a part in the spinoff.
“Ice cream is more of a lower margin product than many of the products that Unilever is actually trying to sell,” Burkhardt said.
He also believes Ben and Jerry’s roots in social justice, including a recent call for a permanent cease-fire in Gaza, could shake up Unilever stakeholders and influence the split.
“Within companies whose brands around the world are on a global mission to do good, there can be different visions of what good is,” Burkhardt said.
Despite the divide, Burkhardt says the split has a silver lining.
“There’s a wonderful opportunity for Ben and Jerry’s to be able to focus on what is ideal for Ben and Jerry’s going forward for its business,” he said.
No one was available to comment from Ben and Jerry’s. In a statement to WCAX News, the company called the split a significant change but emphasized their continued commitment to their products, economics and social justice.
There are still several unanswered questions, including how the new ice cream business will be owned and operated, and what impact the split will have on jobs at Ben and Jerry’s.
Unilever says the split should be completed by the end of next year.
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