Ben & Jerry’s founders explore separation from owner Magnum Ice Cream

Ben Cohen and Jerry Greenfield, the co-founders of Ben & Jerry’s, are exploring a deal to separate the ice cream brand from its current owner, Magnum Ice Cream. According to reports, the founders have been in discussions with Pete Stavros, founder of Expanding ESOPs, to carve out the business and restructure it under an employee stock-ownership plan (ESOP).

This proposed structure would provide rank-and-file employees with stock and offer the company tax benefits. The move follows a history of friction between the brand’s independent board and its parent companies regarding social activism and ethical stances.

Magnum Ice Cream has stated that Ben & Jerry’s is not for sale, asserting that the brand is thriving under its current ownership. The company warned that a separation would create significant dis-synergies, reduce investment in the brand’s social mission, and lead to higher unit prices.