Ben & Jerry’s Founders Explore Spin-Off Under Employee Ownership Plan
Key Facts
Ben & Jerry’s founders are exploring a deal with Beth Stavros, KKR’s co-head of global private equity, to separate the brand’s business from its owner, according to a Wall Street Journal report cited by Reuters on Monday. The proposal would structure the business under an employee stock ownership plan, the report said. No agreement has been announced, and discussions remain at the stage of exploring a possible separation structure. The proposal would tie employee ownership to the business structure after it is separated, rather than amounting to an administrative change within the parent group. The move comes amid a long-running dispute over the brand’s independence and mission, while Magnum became its owner after the ice cream business separated from Unilever.
According to the report, the proposed structure would give ordinary employees shares and provide tax benefits to the company. The report did not specify the shareholding employees would receive or the value of the business under the potential structure. That puts employee participation at the center of the arrangement the founders are discussing with Stavros, an executive at a private equity firm. The parties have not announced that the structure has been adopted or that the business separation has been completed. Reuters said Magnum, KKR and Ben & Jerry’s did not immediately respond to its requests for comment.
Ben & Jerry’s is currently owned by Magnum, which was spun off from Unilever’s ice cream business. The separation was completed on 6 December 2025, and Magnum shares began trading on 8 December of the same year. Unilever retained a minority stake of less than 20% in Magnum after the separation. Any proposed spin-off of the brand would therefore be from its current owner, Magnum, rather than directly from Unilever. Unilever acquired Ben & Jerry’s in 2000 for $326 million.
The deal exploration comes amid a dispute between the founders and the owner over the brand’s independence and social role. In April 2026, founder Ben Cohen said he wanted to sell the brand to a group of investors interested in social issues, valuing it at between $1.5 billion and $2 billion. Magnum responded that month that Ben & Jerry’s was not for sale, describing it as a thriving part of the company and reaffirming its commitment to the brand’s model and three-part mission. In September 2025, founder Jerry Greenfield resigned after nearly 50 years with the brand, calling the decision painful and expressing concern that its independence was eroding. Magnum said at the time that it had sought constructive dialogue with the founders on strengthening Ben & Jerry’s values and was committed to the brand’s mission.
The dispute has also involved the authority of the brand’s board and who determines its composition. On 21 August 2026, a federal court in New York rejected most motions to dismiss the lawsuit, allowing some claims related to the removal of independent board members or the imposition of new eligibility requirements on them, as well as board appointments, to proceed. Magnum had introduced nine-year limits on board membership, according to a Reuters report in February 2026; five other directors left after its chair, Anuradha Mittal, was removed. Magnum said it was committed to supporting the Ben & Jerry’s team and looked forward to developing a “refreshed” board, calling the prolonged litigation “unfortunate.” Former directors said the parent company had no right to appoint the independent board chair.
The dispute between the brand and its owner dates back to 2021, when Ben & Jerry’s said it would stop sales in Israeli settlements in the occupied West Bank. The company also said Magnum had blocked posts related to Black History Month, a ceasefire in Gaza and support for student protesters. The Associated Press reported these allegations in its coverage of the dispute, while Magnum said it was committed to supporting the brand’s team and mission. This background gives the proposed separation significance beyond ownership structure, as it is also linked to the dispute over the scope of Ben & Jerry’s independence in its public positions. In trading on 23 October 2026, KKR shares closed at $91.34 and Unilever shares closed at $66.23; closing data alone did not include details on the two stocks’ movements during the session.
The report does not give an announced date for an agreement or completion of the proposed deal. The parties have also not announced a timeline for a next step and did not immediately respond to Reuters’ requests for comment. Based on the information published, the proposal remains a discussion about separating the business and structuring it under an employee stock ownership plan. Magnum has not announced a change to its earlier position that Ben & Jerry’s is not for sale. The path and outcome of a potential separation therefore remain unresolved publicly.