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Ben & Jerry’s Faces Backlash Over Land Return Proposal

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Amidst the ever-growing trend of companies speaking out on contentious issues, it seems that we have yet another contender for the spotlight. This time, it’s ice-cream brand Ben & Jerry’s finding itself at the center of a heated debate after publicly calling for the return of land in the U.S. to indigenous communities.

The controversial message, originally tweeted by Ben & Jerry’s on July 4th, has sparked a wave of criticism and even calls for a boycott against the brand. Some have drawn parallels between this situation and the backlash faced by another company, Bud Light. However, despite the noise surrounding this issue, investors in Ben & Jerry’s parent company Unilever (Ticker: UL) can breathe a sigh of relief knowing that the relative size of the ice-cream business and its long history of corporate activism should shield the company from significant reputational damage.

In order to put things into perspective, it’s worth highlighting just how small Ben & Jerry’s is when compared to Unilever as a whole. According to Reuters, Ben & Jerry’s was valued at over $1 billion last year, whereas Unilever’s market value stands at an impressive $131 billion.

It’s important to note that Bud Light, prior to facing backlash, was the leading brand under parent company Anheuser-Busch InBev (BUD). The controversy arose following its partnership with transgender social-media personality, Dylan Mulvaney. Despite the stock drop experienced by Anheuser-Busch InBev, analysts have questioned the extent to which the situation was blown out of proportion. In contrast, Unilever possesses a diversified portfolio with a strong focus on emerging markets, which should enable it to withstand any potential U.S. backlash related to a relatively small part of its overall portfolio.

In conclusion, while Ben & Jerry’s may be facing criticism and calls for a boycott over their land return proposal, it is unlikely to have a significant impact on Unilever as a whole. Investors can take comfort in both the size of the ice-cream brand in relation to the parent company and Unilever’s established track record of navigating through corporate activism challenges. As controversy continues to make headlines, only time will tell how this latest chapter unfolds.

The Impact of Ben & Jerry’s Tweet

Introduction

Ben & Jerry’s Core Audience

Unlike Bud Light, whose advertisements received criticism from rural and conservative demographics in the United States, Ben & Jerry’s remains closely connected to its core audience. This audience is already familiar with the brand’s extensive history of advocating for progressive social causes. Consequently, it is unlikely that the recent tweet will alienate this loyal customer base.

The Relationship between Unilever and Ben & Jerry’s

Unilever, the parent company of Ben & Jerry’s, occasionally finds itself uncomfortable with the messages conveyed by the ice-cream brand. Since Ben & Jerry’s has an independent board, which was part of the acquisition deal in 2000, conflicts of interest often arise. For instance, last year, Unilever and Ben & Jerry’s found themselves in court due to the sale of the brand’s Israeli business. However, this litigation was ultimately resolved. Despite such occasional disputes, Unilever’s management is unlikely to overreact to a single tweet in a manner similar to Bud Light. Investors should take note and remain calm as well.

Market Response and Comments

On Thursday, Unilever’s American depositary receipts experienced a slight decline of 1.1%. At the time of writing, both Unilever and Ben & Jerry’s have not responded to comment requests made by ‘s.

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