Ben & Jerry's Foundation Shuts Down
Ben & Jerry’s Foundation to Shut Down Amid Legal Dispute with Parent Company
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The Ben & Jerry's Foundation, the philanthropic arm of the Vermont ice cream brand, announced it will shut down by the end of 2025 after parent company Unilever cut off its funding and evicted its three staff members, according to WECT. The closure puts $600,000 a year in grants to Vermont organizations at risk — and threatens 40 years of the brand's progressive giving mission.
The foundation's fate now hinges on a federal judge's ruling. A lawsuit filed in November 2024 against The Magnum Ice Cream Co. — the Unilever subsidiary that controls the brand — is pending in the U.S. District Court for the Southern District of New York, WFSB reported.
Unilever Cuts Funding and Forces Staff Out
Unilever stopped sending money to the foundation and removed its three employees from their offices. The foundation had relied entirely on Unilever for its budget. Without that funding, it says it cannot keep operating. The shutdown is set to take effect at the end of this year, according to KTTC.
Since Ben & Jerry's sold its ice cream business to Unilever in 2000, the company had given $60 million to the foundation over more than two decades, WBTV reported. That long financial relationship now appears to be over, barring a court order to reverse course.
Lawsuit Accuses Unilever of Silencing Ben & Jerry's Voice
The foundation filed a lawsuit against The Magnum Ice Cream Co. in November 2024. The suit claims the company went too far in controlling the brand. It alleges that Magnum pushed out the brand's CEO and tried to shape Ben & Jerry's political views, according to WABI.
Ben & Jerry's has long been known for taking bold political stances — on climate, racial justice, and more. The foundation argues that Unilever used its corporate power to suppress that voice. The case is now before a federal court in New York, Cleveland 19 reported.
Vermont Communities Stand to Lose $600,000 Yearly
The foundation has given grants to Vermont-based groups for four decades. Those grants — totaling $600,000 per year — support local progressive causes and community organizations. If the foundation closes, that money disappears with it, according to WLBT.
Small nonprofits and advocacy groups in Vermont depend on that annual funding. The closure would leave a significant gap in local philanthropy that would be hard to fill quickly. Foundation leaders say the shutdown is not their choice — it is being forced on them by Unilever's actions, KFYR TV reported.
A Judge's Ruling Could Reverse the Closure
The foundation says a favorable court ruling could change everything. If the judge sides with the foundation, Unilever could be ordered to restore funding and reinstate staff. But until a decision comes down, the clock is ticking toward a year-end shutdown, according to WBTV.
The case puts a spotlight on a larger tension: what happens to a brand's mission after a corporate buyout. Ben & Jerry's kept its independent board when Unilever bought it in 2000 — a rare arrangement. Now that deal is being tested in court, Fox 34 reported.
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