Unilever threatens to pull funding from the Ben & Jerry's Foundation, sources say

NEW YORK: Unilever is threatening to halt funding to the Ben & Jerry’s Foundation, a U.S.-based nonprofit that makes donations to social justice organizations, sources familiar with the matter said.

Unilever is asking Ben & Jerry’s Foundation to agree to an expedited audit of its donations to continue the funding, which amounts to roughly $5 million annually and is determined by a formula based on sales of the brand’s ice cream, the two sources said.

Ben & Jerry’s sued Unilever in November to stop alleged efforts to dismantle its board and end its progressive social activism, which has included protesting the war in Gaza, supporting a movement to defund police, and attempting to criticize U.S. President Donald Trump.

The sources said Unilever is threatening to halt the funding in retaliation for the lawsuit, and because one of the ice cream maker’s founders has tried to buy back the frozen dessert maker.

Unilever, Ben & Jerry’s and Ben & Jerry’s Foundation did not immediately return requests for comment.

The Ben & Jerry’s Foundation has supported Homes for All St. Louis, an advocacy group for renters, the Felony Murder Elimination Project, a nonprofit that tries to reduce sentencing for inmates, and Adelante Student Voices, which supports undocumented students.

Read More: Ben & Jerry’s says parent Unilever silenced it over Gaza stance

Earlier, Ben & Jerry’s said in a lawsuit filed that parent company Unilever has silenced its attempts to express support for Palestinian refugees and threatened to dismantle its board and sue its members over the issue.

The lawsuit is the latest sign of the long-simmering tensions between Ben & Jerry’s and consumer products maker Unilever. A rift erupted between the two in 2021 after Ben & Jerry’s said it would stop selling its products in the Israeli-occupied West Bank because it was inconsistent with its values, a move that led some investors to divest Unilever shares.

The ice cream maker then sued Unilever for selling its business in Israel to its licensee there, which allowed marketing in the West Bank and Israel to continue. That lawsuit was settled in 2022.