LONDON, May 6 - A group of shareholders representing roughly 1.3% of The Magnum Ice Cream Company’s stock has formally challenged the company over its management of issues tied to the Ben & Jerry’s brand and a perceived lack of financial transparency, according to a shareholder letter seen by Reuters.
The investors - who collectively manage assets measured in the billions - asked Magnum to explain how it will preserve the independence of the Ben & Jerry’s board and to provide separate sales and profit data for the brand. The letter raises questions about the impact of the dispute on brand value and investor confidence as Magnum operates post-demerger from Unilever.
Ben & Jerry’s, a brand with a long record of outspoken social activism, has repeatedly created friction with its former parent, Unilever. Those tensions have resurfaced following Magnum’s spin-off and December listing, where the newly independent ice cream maker has taken steps that critics say undermine the autonomy of Ben & Jerry’s independent board.
Magnum has reduced the independent board to two members, and former members who were removed are contesting Magnum’s actions. The shareholder letter, dated May 1 and sent to Magnum’s board ahead of the firm’s annual general meeting on May 7, requests a clear account of how Magnum will honour the independent board agreement and a full accounting of liabilities, including ongoing legal proceedings.
In their correspondence, the investors warned that Magnum’s handling of Ben & Jerry’s governance and public mission risks harming the business and eroding value. Whitney Nguyen, director of impact research at NorthStar, is quoted as saying: "They’ve dismantled the brand’s social mission which, for us as investors, is the brand equity."
The letter also highlights concerns that the independent board agreement has been "consistently and systematically disregarded," a point amplified by signatures from the major Dutch Association of Investors for Sustainable Development (VBDO) alongside NorthStar.
Magnum responded with a statement saying it respectfully disagreed with some characterisations in the letter but that it welcomes engagement with shareholders. The company emphasised its commitment to maintaining a board led by an independent director to help guide the social mission and brand integrity, alongside the CEO. Magnum noted it owns other brands including Wall’s and Cornetto.
Unilever, which retains a 19.9% stake in Magnum following the separation, declined to comment.
The investor concerns trace back to episodes in recent years that complicated the Ben & Jerry’s-Unilever relationship. Unilever’s acquisition of Ben & Jerry’s in 2000 included provisions granting Ben & Jerry’s an independent board and protecting its social mission and charitable efforts. Tensions escalated in 2021 when Ben & Jerry’s announced it would stop selling in the Israeli-occupied West Bank. As the demerger from Unilever approached, Magnum criticised the chair of Ben & Jerry’s independent board as unfit to serve and later accused her of serious misconduct.
NorthStar and the other signatories argued that actions such as overriding board decisions, removing dissenting board members, and curbing the brand’s social mission amount to systematic violations of the acquisition agreement. Nguyen warned that this pattern represents "a significant governance failure that erodes shareholder trust and sets a deeply concerning precedent for every brand within the Magnum and Unilever portfolio."
The investors also raised the prospect that the handling of Ben & Jerry’s could cause other brands, potentially being acquired by Magnum or Unilever, to reassess those companies’ willingness to deal with either owner. NorthStar framed the issue as having broader implications for brand trust and acquisition dynamics.
Contextual notes
- The shareholder letter was dated May 1 and was delivered ahead of Magnum’s May 7 annual general meeting.
- The investor group represents about 1.3% of Magnum stock and includes NorthStar Asset Management and the VBDO.
- Unilever retains a 19.9% stake in Magnum following the separation.