Gaza’s support could derail the spin-off of Unilever’s ice cream into a separate company

According to the publication, Unilever warned that statements by the independent board of directors of Ben & Jerry’s on the war in Gaza carry the risk of “reputational damage” for the new structure – The Magnum Ice Cream Company, which will include the Magnum, Cornetto, Ben & Jerry’s and other brands.

Unilever is spinning off its ice cream division as a separate company as part of a major restructuring and cost-cutting effort. The new holding is planned to be listed on the stock exchanges of London, Amsterdam and New York. The implementation of the deal, according to analysts, largely depends on the attitude of investors to the risks around Ben & Jerry’s, which remains the most politicized and conflict-ridden part of the division.

Ben & Jerry’s independent board has repeatedly clashed publicly with its parent over its stance on Israel and the Palestinian issue in recent years, calling for a ceasefire in Gaza and accusing Israel of “genocide” and challenging Unilever’s business decisions in Israel and Judea and Samaria. In 2024-2025, Ben & Jerry’s filed several lawsuits against Unilever in the United States, accusing the concern of trying to “silence” the brand and illegally remove executives for political activity.

Adding to the strain is a recent audit of the Unilever-funded Ben & Jerry’s Foundation, which found “significant deficiencies” in its financial controls, governance and conflict of interest policies.

In October, Ben & Jerry’s co-founder Ben Cohen said Unilever, which owns Ben and Jerry’s, prevented him from producing ice cream “in solidarity with Palestine.” According to the entrepreneur, he proposed to start producing sorbet with watermelon flavor. The watermelon combines the colors of the Palestinian flag: green, red, white and black, and has become a symbol of solidarity with the Palestinians.