The ice cream industry faces an unprecedented corporate showdown as major players prepare for significant market changes. What started as a routine business separation has evolved into a complex dispute that could reshape how activist brands operate within larger corporations.
This conflict highlights the delicate balance between corporate governance and brand independence in today’s business landscape. The implications extend far beyond frozen desserts, touching on fundamental questions about corporate responsibility and autonomous decision-making.
Magnum Challenges Ben & Jerry’s Leadership
The Magnum Ice Cream Company stated in a U.S. Securities and Exchange Commission (SEC) filing that the chair of Ben & Jerry’s board no longer “meets the criteria” to serve, following internal investigations conducted by external advisers. This revelation marks the latest escalation in an ongoing internal dispute as Unilever prepares to spin off its ice cream division. The separation, initially scheduled for November, has been delayed by a month due to the U.S. government shutdown.
Investigation Details Remain Confidential
Magnum’s filing did not disclose specific findings from the investigation or identify the board chair in question. However, reports indicate that Anuradha Mittal currently serves as chair of Ben & Jerry’s board. The company has informed the board about the investigation and hinted at potential follow-up actions depending on the board’s response.
Despite the strong language, the scope of Magnum’s authority is limited, since Ben & Jerry’s board was originally structured to operate independently following its 2000 acquisition by Unilever.
Longstanding Rift Between Unilever and Ben & Jerry’s
Tensions between Unilever and Ben & Jerry’s date back to 2021, when the Vermont-based brand announced it would halt sales in the Israeli-occupied West Bank. The decision triggered a legal and corporate battle over the brand’s autonomy. Ben & Jerry’s later accused Unilever of undermining its independent board and even filed lawsuits to preserve its governance rights.
The rift deepened as the brand continued to take strong political stances, including calling the Gaza war a “genocide.”
Founders Defend Independent Governance
Co-founder Ben Cohen condemned Magnum’s actions, describing them as an attempt to “rewrite history” and undermine the board’s legal independence. He emphasized that the original acquisition agreement with Unilever established a structure designed to safeguard the brand’s social mission and integrity. Any significant changes to board membership require a majority vote from the board itself, making unilateral corporate interference difficult.
Implications for the Brand’s Future
Cohen argued that Magnum’s move against Mittal threatens the brand’s long-term value, accusing the parent company of pursuing power at the expense of Ben & Jerry’s founding principles. He warned that once the spin-off is complete, the conflict may intensify, as Ben & Jerry’s will represent a more substantial portion of Magnum’s overall business. This could increase corporate pressure on the brand to conform to profit-driven priorities over social advocacy.
Magnum’s Market Outlook and Strategy
Magnum, which is set to list in Amsterdam on December 8, expects its market value to grow amid the global ice cream industry’s expansion – projected to reach around $105 billion by 2029. In the first half of 2025 alone, Magnum generated €4.5 billion ($5.25 billion) in revenue. Once independent, it will control about one-fifth of the global ice cream market, competing directly with major rivals such as Nestlé-backed Froneri.
Risks Facing the Ice Cream Industry
As Magnum transitions into a standalone company, it has highlighted several risks that could affect profitability. These include shifting consumer behavior influenced by the rise of weight-loss drugs, reduced ice cream consumption, and fluctuating prices of essential ingredients such as cocoa and sugar. How Magnum manages these challenges – and its strained relationship with Ben & Jerry’s – will play a crucial role in determining its future stability and brand integrity.
