An Israeli ice cream manufacturer has filed a lawsuit against Ben & Jerry’s and its parent company, Unilever PLC (NYSE:UL), charging them with breach of contract in refusing to renew its license when the company embraced the Boycott, Divestment and Sanctions (BDS) movement designed to make Israel an economic pariah.
What Happened: According to a Wall Street Journal report, Avi Zinger filed a suit in New Jersey federal court that claimed the Ben & Jerry’s license for American Quality Products Ltd wasn't renewed because he refused to stop selling ice cream in the Israeli-occupied West Bank and East Jerusalem.
Zinger’s company has sold Ben & Jerry’s in Israel for 34 years, and his lawsuit claimed the company pledged it would renew its five-year license prior to its expiration this December. Last July, Zinger was informed his license wasn't being renewed.
In his lawsuit, Zinger stated he received the news about his license on the same day Ben & Jerry’s announced it was participating in the BDS movement. The company took that approach by claiming it was "inconsistent with our values for Ben & Jerry’s ice cream to be sold in the Occupied Palestinian Territory.”
The company added that the end of its retail presence in these markets will not occur until the end of 2022, which coincided with the end of Zinger’s current licensing agreement.
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What Happens Next: Zinger’s lawsuit argued that Israeli law prohibits a local company from participating in efforts that encourage a boycott of Israeli products and services.
Ben & Jerry’s and Unilever did not publicly comment on the lawsuit. Last July, Ben & Jerry’s stated it would continue to sell its products in Israel “through a different arrangement” beginning in 2023, although it did not offer specifics on what that would entail.
Photo: Ben & Jerry’s
