New Jersey is yanking its investments out of Unilever over Ben & Jerry’s decision this summer to pull out of the occupied territories in Israel.
The state’s treasury department, which has $182 million invested in Unilever stock, bonds and other securities, fired off a letter to Unilever’s chief executive, Alan Jope, informing him of a 2016 law that prevents New Jersey from investing its pension funds in businesses that engage in boycotts of Israel, according to a copy of the letter which The Post obtained.
The Ben & Jerry’s move was determined to be an action that fell afoul of that law.
The divestment will be finalized within 90 days unless Unilever appeals the decision, according to the letter by the state’s acting director of the treasury, Shoaib Khan.
Unilever, which owns the popular ice cream company that announced plans to stop selling its products in the occupied territories, has been taking heat from a number of government officials — including Israel’s prime minister, Naftali Bennett — over the controversial decision.
Bennett said the boycott would have “severe consequences.”
In an August letter to New Jersey, Jope said: “This is a complex matter because since we acquired Ben & Jerry’s in 2000, as part of the acquisition agreement, we have always recognized the right of the brand and its independent Board to take decisions in accordance with its social mission. On this decision, it was no different.”
He said Unilever rejected anti-Semitism and had never expressed support for any so-called BDS movement, which stands for boycott, divest and sanctions and is a pro-Palestinian strategy to get companies and others to take stands against Israel. The Ben & Jerry’s move was seen as part of this.
The company didn’t respond to a request for a comment from The Post, except to send the August letter from Jope.
Last week, Arizona announced that it would divest its $143 million investment in Unilever as a result of a law that states “public state entities may not invest moneys with an entity that boycotts Israel.” The pension fund has $92.7 billion in assets, according to Pensions & Investments.
US Sen. Rick Scott (R-Fla.) called on the Department of Commerce to launch an investigation into Ben & Jerry’s, arguing that the boycott of the West Bank may violate the Export Administration Act.
Other states, including New York and Illinois, have warned Unilever that they are reconsidering divesting their pension funds from the company — and this summer the mayor of Englewood Cliffs, NJ, where Unilever is headquartered, wrote a letter urging the company to reconsider its decision.
In July, Thomas DiNapoli, New York’s state comptroller, wrote a letter to Jope giving him 90 days to justify the company’s decision.
Scores of other prominent individuals and groups have also threatened Unilever, including a legal group in Israel, which is trying to coopt the Ben & Jerry’s trademark in the Palestinian territories on the grounds that it “abandoned” its intellectual property there.
Some Ben & Jerry’s employees here and in Israel have also quit their jobs.
Unilever, which bought Ben & Jerry’s in 2000, has been walking a tightrope, trying to appease its critics while defending its subsidiary’s right to make decisions according to its social mission.
