Jonathan Stempel

NEW YORK (Reuters) – Ben & Jerry’s was sued on Thursday by its longtime Israeli ice cream manufacturer, which said the company illegally severed their 34-year relationship after halting sales in Israeli-occupied Palestinian territories.

Avi Zinger said Ben & Jerry’s refused to renew the license for his American Quality Products Ltd because he would not abide by the company’s decision to stop selling its products in the Israeli-occupied West Bank and parts of East Jerusalem.

Ben & Jerry’s and its parent Unilever (NYSE:) Plc declined to comment on the lawsuit, which was filed with the U.S. District Court in Newark, New Jersey.

Founded in 1978 by Ben Cohen and Jerry Greenfield in a renovated gas station, Ben & Jerry’s has long positioned itself as socially conscious, and retained independence to pursue that mission after being acquired by Unilever in 2000.

The sales boycott that was announced in July caused a backlash. There were divestments of pension funds as well as accusations by Jewish groups of anti-Semitism.

According to Thursday’s complaint, Ben & Jerry’s had “repeatedly promised” Zinger it would renew its license with his 169-employee company beyond its scheduled Dec. 31, 2022 expiration, but caved to pressure from Israel’s opponents.

Zinger is an Israeli citizen who claimed that Zinger’s only reason for the change was his “refusal” to fulfill their illegal demand that they boycott parts of Israel in violation of Israeli law.

The plaintiff seeks injunction to maintain the status quo, and unspecified damages.

Many countries regard Israeli settlements within the occupied Palestinian territory as illegal. Israel disagrees.

In announcing the boycott, Ben & Jerry’s said selling ice cream in those territories was “inconsistent with our values.”

Ben & Jerry’s accounts for about 3% of the global ice cream market.

Cohen and Greenfield, who are Jewish, are not involved in Ben & Jerry’s operations.

In July, they wrote in The New York Times that they were supportive of Israel and opposed the “illegal occupation” in West Bank.

The case is Zinger et al v Ben & Jerry’s Homemade Inc et al, U.S. District Court, District of New Jersey, No. 22-01154.