Ben & Jerry’s West Bank Boycott Prompts Suit by Israeli Partner

(Bloomberg) -- Ben & Jerry's Israeli partner said the ice cream maker's decision to stop selling its products in West Bank settlements will illegally terminate a 34-year business relationship.

Avi Zinger and his company, American Quality Products, on Thursday sued Unilver Plc, Ben & Jerry's corporate parent, in federal court in New Jersey. Zinger argues the West Bank boycott violates U.S. and Israeli law and is seeking an immediate order allowing his company to continue manufacturing and distributing Ben & Jerry's products under license throughout Israel, as well as unspecified money damages.

Unilever didn't immediately respond to a request for comment. Ben & Jerry's, whose founders are well-known for their progressive politics, announced its boycott in July, saying “it is inconsistent with our values for Ben & Jerry's ice cream to be sold in the Occupied Palestinian Territory.” It said at the time that it would not be renewing its current licensing agreement in Israel at the end of 2022 but would continue selling its products in the country through a different arrangement.

“Ben & Jerry's and Unilever's actions are misguided, unlawful and immoral,” Zinger said in a statement. “We expect the court to prevent Unilever from terminating my contract, since the only reason it's doing so is that I refused to break the law.”

According to the lawsuit, allowing the licensing agreement to end will lead to “irreparable harm” to the Israeli company. Zinger claims relationships with creditors and suppliers are already being damaged, while competitors, including another Israeli ice cream company owned by Unilever, are “taking advantage of the situation to push plaintiffs out of the marketplace” by “poaching plaintiffs' employees and pressuring supermarket chains” for more freezer space.

Ben & Jerry's denied in its July statement that it was part of the so-called boycott, divestment and sanctions movement against Israel, noting that its products would continue to be available outside the West Bank settlements. But its move was widely seen as reflecting BDS sentiments. New York, one of many U.S. states that have passed anti-BDS laws, last year said it was selling a $111 million stake in Unilever in response to Ben & Jerry's West Bank boycott.