The ice cream boycott in Israel: the CEO got entangled in his words

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Ben & Jerry’s storm refuses to sink. As previously reported, Unilever CEO initially tried to shake off the boycott, claiming that it was an independent decision by Ben & Jerrys, but as stated – his announcement seemed out of place and outspoken. Last Thursday, Unilever Global CEO Alan Joop said Ben & Jerry’s aims to formulate a “new arrangement” for sales in Israel before the end of the year. Our focus at the moment is to understand what the new arrangement will be for Ben & Jerrys. “

The announcement means that the Ben & Jerrys factory in Israel has ended its current format as a result of the cessation of the Israeli factory’s opposition to the Ben & Jerrys boycott of the ‘occupied’ territories – and the company will find a way to sell the ice cream in Israel while implementing the boycott. & Jerry’s, and without selling the ice cream in Judea and Samaria.

Unilever Corporation in Toronto (Shatterstock)

Jop’s remarks caused a worldwide uproar because they were in conflict with both the Israeli boycott law and the agreement signed with the US Antitrust Authority: The boycott law – and the company is expected to face sanctions under Israeli law.

However, beyond Israeli law, the implementation of the boycott will affect an agreement signed between Unilever and Ben & Jerry’s in 2001. Food giant Unilever, which wanted to acquire Ben & Jerry’s, applied to the US antitrust commissioner to acquire the company – and the commissioner demanded acceptance. The consent of the antitrust authorities in all countries in which there is another competing subsidiary, as there is in Israel (Strauss Ice Cream, owned by Unilever).

Asking for the consent of the then Israeli commissioner – Dror Strum, they were met with a unique problem due to the fact that Unilever already owned Strauss ice cream, and the acquisition of another ice cream company could hurt competition in the ice cream industry.

Finally, Shtrum granted their request and allowed the acquisition on terms that did not harm competition: among other things, the Commissioner of Unilever prohibited in any way restricting the market shares of any of the companies it owned. Now, the cessation of ice cream sales in Judea and Samaria is a blatant violation of the agreement signed with the antitrust commissioner, and this could even complicate Unilever’s deal with the US antitrust commissioner.

The words of the CEO of Unilever, according to which the option for a new arrangement that does not include Judea and Samaria are being examined, in fact the company is reducing Ben & Jerrys’ market share – in contrast to the 2001 agreement.

Did not succumb to the boycott.  Avi Singer (Photo: Matan Portnoy)

Did not succumb to the boycott. Avi Singer (Photo: Matan Portnoy)

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Avi Singer, the CEO and owner of Ben & Jerrys Israel, who refused to boycott parts of the State of Israel and subsequently announced that the contract with him will not be renewed at the end of 2022, responds to Unilever’s CEO: “Unilever CEO’s scandalous statement breaks records Hypocrisy and lack of understanding of Israeli law explicitly states that there is no legal possibility to continue selling in Israel without selling in Judea and Samaria. Any new arrangement that does not include a sale in all areas of Israel means a violation of Israeli law.

In his remarks, the CEO of the Knesset of Israel will approve the regulations of the boycott law approved last week by the ministers of finance and justice, which will allow immediate sanctions against the company. Following the words of the CEO of Unilever.

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