Dive Brief:
- Fifteen years after its acquisition by Unilever PLC, Ben & Jerry's remains a trailblazer for social activism in the food industry, despite initial fears that being acquired by a major corporation could derail those efforts.
- While Unilever and Ben & Jerry's did work through some tensions immediately following the merger, including layoffs, Unilever largely allowed Ben & Jerry's to maintain independence, more so than most of Unilever's other brands.
- Since the acquisition, Unilever has enabled Ben & Jerry's to close to triple its revenue and have a bigger social impact because of its increased size. At the same time, Ben & Jerry's has helped Unilever aspire to be a more progressive company as well.
Dive Insight:
Acquisitions of smaller brands that make organic, natural, and/or local products have been common in the food industry over the past few years, including General Mills and Annie's, Hormel and Applegate Farms, and Coca-Cola's recent minority stake in Suja, to name a few. These acquisitions are a way for major food and beverage companies to respond to changing consumer preferences besides pursuing product development within the company's current brands, sales for which may be hurting as consumers turn away from conventional processed foods.
In the case of Unilever and Ben & Jerry's, both companies had a positive effect on each other in what The New York Times called "a case study on how such marriages can succeed." Each year, Oxfam International ranks the world’s 10 largest food and beverage companies on various facets of sustainability for its "Behind the Brands" campaign, and for the March 2015 campaign, Unilever overcame its consistent No. 2 spot to outrank Nestle and claim the No. 1 seat.