Unilever Plc’s internal dispute with Ben & Jerry’s is heating up again as the Vermont-based ice cream maker disavowed the products sold under its brand in Israel.

Ben & Jerry’s independent board criticized parent company Unilever’s decision to allow sales under the brand in West Bank settlements via a third party. The comments, made Tuesday in a statement shared exclusively with Bloomberg, mark the first time Ben & Jerry’s has spoken about the matter publicly since filing a lawsuit in a federal New York court in July.

“Ben & Jerry’s position is clear: the sale of products bearing any Ben & Jerry’s insignia in the Occupied Palestinian Territory is against our values,” the ice-cream maker’s board said. “Such sales are inconsistent with international law, fundamental human rights and Ben & Jerry’s social mission.”

Unilever is in the tricky position of being sued by its premium ice cream unit, which it has allowed to pursue socially progressive causes via an independent board. Last year, the independent board publicly pledged to stop sales of Ben & Jerry’s in the occupied West Bank, citing human rights, economic and social justice concerns. Unilever decided to go over the board’s head and sell the Ben & Jerry’s business in Israel to a local producer of the ice cream.

‘No Different’

“The ownership of the brand is different, but the Ben & Jerry’s product is no different to what’s been enjoyed in Israel for many years,” Unilever said in a statement.

The dispute is a headache for outgoing Unilever CEO Alan Jope, who said in October he considered the Israel situation resolved and denied that he would divest the “beautiful products,” which have grown well over the years. 

“We’re proud of that brand and it is going nowhere,” he said at the time. “It is staying in the Unilever portfolio. Period.”

Ben & Jerry’s said Tuesday being present within an internationally recognized illegal occupation is inconsistent with the company’s values. The board said its ice cream shouldn’t be confused with any products sold by Blue & White Ice Cream Ltd., the local producer in Israel owned by Avi Zinger.

The Vermont-based company’s board alleges that Unilever’s sale of a license to Blue & White conflicts with a legal agreement made when Unilever bought the brand in 2000 that gave the independent board control over its social mission.

Ben & Jerry’s original comments in 2021 triggered a backlash from the Israeli government, which views the occupied territories as part of its economy. It argued that any efforts to block sales in those territories violate anti-boycott laws. 

In the U.S., Unilever drew the ire of local investors who threatened to sell the company’s stock because of state laws that prohibit investing pensions in companies that boycott Israel. 

—Bloomberg News