Kenneth Rapoza
Will big business gobble up Ben and Jerry's?
A protest movement tries to make sure that Cherry Garcia is never owned by Nestli.
Ben & Jerry’s Homemade Inc., the Vermont ice cream company with a social conscience, is having a hard time doing well while doing good. So with the company’s stock price sagging, multinational ice-cream manufacturers are trying to scoop up the struggling firm.
On Dec. 2 the company announced that it had received acquisition offers from four firms: Unilever NV, Nestli, Diageo of Britain (makers of arch rival Häagen-Dazs) and Italy’s Roncadin. Ben and Jerry’s stock climbed 8 points on the news.
A grassroots movement against the proposed sale, however, formed quickly after the announcement, and it’s clear that many Vermonters don’t want to see Ben & Jerry’s sold.
On Monday afternoon, about 100 demonstrators gathered in Burlington, handing over ice cream lids with the words “Don’t Sell Us Out” to the company’s board of directors. Vermont government officials, well aware of Ben & Jerry’s large tourist draw and economic boon to local farmers, said that they were “very concerned” about the possibility of an acquisition by a multinational.
“This company has really come to symbolize Vermont to the country and to the world,” Vermont Gov. Howard Dean told Reuters. “It would be a shame if it were sucked into the corporate homogenization that’s taking over the planet.”
Ben & Jerry’s surged to popularity in part on the marketing of its socially responsible, countercultural approach to business. It named ice cream after ’60s icons like Jerry Garcia and Wavy Gravy, and recruited a CEO through an essay contest. It is probably the only company that holds its annual shareholders meeting at a live outdoor concert, where investors can step up to the microphone and give opinions and advice on the company’s future.
The executive director of Vermont’s Public Interest Research Group (VPIRG), Dave Rapaport, said the company has a business model that proves companies can be successful and care about local communities. “We want a local economy. It’s been historically a local economy in this state but the entry of a lot of large corporations coming in here is dominating the characteristics that make Vermont unique,” Rapaport said.
Vermont could very well suffer from a Ben & Jerry buyout. State officials fear it will result in hundreds of lost jobs. Plus, Ben & Jerry’s buys all its milk from Vermont dairy farmers, and it pays more than most premium ice cream manufacturers. The company also donates 7.5 percent of its pre-tax earnings to Vermont charities.
Do-gooders like the company for other reasons. Ben & Jerry’s won’t buy milk, for instance, from dairy farmers who inject rBGH, the infamous Bovine Growth Hormone produced by agribusiness giant, Monsanto. The company makes its brownies in a New York factory that only employs “disenfranchised people,” according to VPIRG, who’ve been out of work, recently off welfare or just out of prison. And in San Francisco Ben and Jerry’s teamed up with a local job training agency to hire at-risk teenagers to work in its local stores and its 3-Com Park franchise.
And yet Ben & Jerry’s is a public company whose stock is traded on NASDAQ, and lately it seems that the firm’s brand of benign capitalism isn’t yielding the return its investors expect.
Public companies are required by law to consider all reasonable offers put before them by outside competitors. The four successful corporations are offering nearly double the share-price value, so the board of directors must take the offer to the shareholders.
Founders Ben Cohen and Jerry Greenfield, along with a shareholder named Jeff Furman, hold 47 percent of the voting shares and are opposed to a buy out. On Monday, Cohen told Vermont public radio that he wants to keep the company local. But they are facing pressure from other shareholders, who want to take the money and run, nearly doubling their investment.
Meanwhile, in Massachusetts, an aggressive 23-year-old named Garret LoPorto created a Web site last week to convince Ben & Jerry’s fans to buy shares in the company, and write to the board of directors. The site has over 700 posts urging Cohen and Greenfield not to sell. LoPorto said he bought some shares this week, but not enough to cover the $225 million being bid for the coveted brand name.
“When I heard about this I thought it was totally against everything Ben Cohen says he is. It doesn’t seem like selling his business to a global corporation is something he’d go for,” said LoPorto. “It’s totally contrary to what Ben & Jerry’s is.”
Visitors to the Save Ben & Jerry’s site are asked to sign a petition against what he calls the “liquidation” of the 21-year-old-company.
Joseph Henry, a shareholder from Iowa, said if globalization gobbles up Ben & Jerry’s, he’ll stop buying the brand. Henry works for Iowans for Sensible Priorities in Des Moines, where he has had opportunities to talk about socially responsible capitalism with Ben Cohen. “Why is Ben & Jerry’s so famous? People are turned on by what they do. Their success is driven by people who care about society and there are a lot of people out there who connect with companies like this,” he said.
“As a shareholder I say no to any sale. I’ve seem small industry get bought out by large competitors here in Iowa. They soon move the plants out of state,” said Henry. “I want the company to stay as it is.” But Henry, with 100 shares of Ben & Jerry’s stock, doesn’t have voting rights.
Joan Johnson of Philadelphia writes on the Save Ben & Jerry’s Web site: “Please don’t let a truly unique institution become just a cog in some monolithic wheel. Let’s continue to have Cherry Garcia and social conscience together in one entity!”
The lies I tell to keep Santa real
It's not long before my girls are jaded middle schoolers. Can't I let them believe in magic a little longer?
Christmas 2010 might be the last year my 9-year-old daughter believes in Santa Claus. That’ll pressure the 6-year-old into disbelief, too, meaning our nuclear family will pass a phase in our own particular holiday culture that I’m not ready for yet. Next year is the year of middle school sarcasm and wanting $400 presents that everyone knows are made by techies at Apple and not toymakers employed by St. Nicholas.
“Daddy, I’m looking at all of my fairy dolls and they all say ‘Made in China’ on them,” says an inquisitive 6-year old, holding a Silvermist doll from Disney Fairies. The oldest doesn’t pay too much attention, even though the doll was given to her by Santa last year. Instead, she glances up from a blank piece of paper while hunched over a box of colored pencils on the living room floor. She is writing her annual day-after-Thanksgiving letter to Santa Claus. We’ve been doing this since she was 3. Looking at her, I think that this is the last time we will share this moment as parent and child.
Continue Reading CloseHelp, I need to buy $1,200 Jonas Brothers tickets
It's ridiculous, it's insane, but is it really so wrong to want your kids to be VIPs?
My 9-year-old daughter’s best friend Sierra has VIP passes to see the Jonas Brothers this summer. It’s a big blowout at the Comcast Center in Massachusetts in August — the Jonas Brothers, Demi Lovato and the cast of “Camp Rock.” What better way to end their summer than with a bang like that?
I can’t name one Jonas Brothers song, but I know most of the lyrics to Demi Lovato’s songs and so does my 5-year-old, who sings in her car seat with a fake microphone to and from kindergarten every day. Sometimes she makes up lyrics. I swear Demi Lovato does not have any songs about fishing, but my 5-year-old seems to think she does.
Continue Reading CloseThe 9/11 lawsuits
A small but growing group of people who lost loved ones in the terror attacks are giving up federal compensation to sue airlines, airport security firms and the FAA.
Waiving federal payments of as much as $1.85 million, 10 people who lost their loved ones in the Sept. 11 terrorist attacks have sued several U.S. airlines and airport security firms, charging that they are responsible for their relatives’ deaths. More lawsuits, including ones against the Federal Aviation Administration (FAA), are expected in the wake of recent revelations that U.S. officials had received warnings about imminent terrorist attacks, and failed to properly investigate two alleged terrorists.
Continue Reading CloseBanned in Boston?
A rumor that the city's housing authority targeted shamrocks as hate symbols just wouldn't die in embattled Southie.
It all started, as ethnic misunderstandings have been known to do, with diversity training.
Late last summer, the Boston Housing Authority gathered residents and staff at a voluntary diversity meeting, where the talk turned to the power of ethnic symbols. Someone suggested that shamrocks, the Hallmark-approved symbol of Irish pride, might be perceived negatively by the non-Irish living in Boston’s housing projects. Soon afterward, trans-Atlantic hell broke loose.
A column in the South Boston Tribune reported that local residents who’d attended the workshop were “insulted” by the notion that shamrocks could be hate symbols, and alleged the BHA was telling residents to take down shamrocks displayed on their apartment door and windows. Columnist John Ciccone called the diversity training “another way of saying brainwashing.” Readers began debating the supposed shamrock ban in letters to the editor.
Continue Reading CloseMilitia U.
Vermont's Norwich University continues to make Indonesians into soldiers, despite a suspension of military cooperation between the two countries.
Human rights activists claim the presence of 11 Indonesian students at a central Vermont military college flies in the face of the recently enacted U.S. policy that forbids U.S.-Indonesian military cooperation and training.
Due to the violence in East Timor after its vote for independence from Indonesia, President Clinton made the ruling in September. But unless the government intervenes in the business of the private 1,000-student military college, the students will finish their four-year course of studies at the 1,000-student college and return to Indonesia for a compulsory 10-year military stint. They list their address in Jakarta as the headquarters of Kopassus, the army’s elite forces alleged by Human Rights Watch to have committed the most atrocious of acts against the East Timorese.
Continue Reading ClosePage 1 of 2 in Kenneth Rapoza