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Ruth Mortimer analyses Unilever's acquisition of the quirky ice cream brand Ben & Jerry's and discovers that there is space for the hippy child in the corporate family.
Ben & Jerry's has always been the hippy child of the ice cream industry. It began doing business at the end of the 'flower power' era and its fun, childlike products are backed up by a strong commitment to social causes. The American brand's generous corporate ethos has won fans from countries as diverse as Israel and Belgium.
But five years ago, the distinctive, independent company was sold to Anglo-Dutch multinational Unilever for $326m (pound 169m). It now sits within a huge corporate structure alongside brands such as Bird's Eye and Knorr, which reported a profit in its food division of pound 1.9bn in 2003. Has the ice cream kid had to grow up?
"There is a really positive spirit of co-operation between us and Unilever but we value our independence. We have built a unique and distinctive culture and this remains very important to us," says Helen Jones, head of Ben & Jerry's in the UK.
Ben & Jerry's now occupies a unique position within its parent company's vast brand structure. It is part of the portfolio, yet the only brand exempt from carrying the new Unilever branding on its packaging. It has a separate location from other companies in the portfolio and is run as a distinct business unit.
But being distinctive is nothing new for the brand. Ben & Jerry's started out with a firmly independent philosophy in 1977 when Ben Cohen and his schoolfriend Jerry Greenfield started their ice cream business. The friendly, small-company culture of the brand thrived even when profits grew to $9m (pound 4.6m) by 1985.
The Ben & Jerry's charitable Foundation was established the same year with a donation of stock. It receives a minimum of $1.1m (pound 600,000) annually from the company and its grants are awarded to a variety of good causes including environmental and women's projects.
Crazy culture
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