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(pensive music) (spoon sliding)
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- [Narrator] Phish Food, Chunky Monkey,
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these quirky flavors are unmistakably Ben & Jerry's.
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But what really sets the brand apart
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is its activism despite being owned
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by one of the largest food companies in the world.
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- It's been really fascinating to see
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that Ben & Jerry's has really held their ground.
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- [Narrator] Companies that take a stance
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on social and political issues
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are becoming more important to consumers.
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According to research by the polling firm Ipsos,
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60% of consumers said they would be more likely
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to consider a brand that's aligned
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with their own views.
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So how does the company blend activism
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into its business model?
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This is The Economics of Ben & Jerry's.
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- Ben & Jerry's really takes a fairly liberal stance
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on a lot of political issues.
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And Ben & Jerry's has not shied away
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from making those positions very public.
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- [Narrator] The company's social mission
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is rooted in the values of its two founders,
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and their life experience having grown up in the 1960s.
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- What's going on is genocide.
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- [Narrator] Ben Cohen and Jerry Greenfield founded
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the company in Burlington, Vermont in 1978.
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Two years later, they were selling pints to grocery stores.
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And in the late '80s, they began using their ice cream
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to support social causes.
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- They've spoken out about how they were advised
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by counterparts in the industry
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that speaking out and taking these activist positions
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would hurt their bottom line.
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This was just not something
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that businesses were doing.
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- [Narrator] But Ben & Jerry's pushed ahead
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and by 1999, it reported $237 million in sales.
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Today, the company says the overwhelming majority
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of its sales comes from selling packaged ice cream
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in supermarkets and convenience stores.
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- What the company has shown over the years
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is that if your product is delicious,
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is attractive in other ways to consumers,
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you can do these things
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and still be a successful business.
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- Hi. - Thanks so much.
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- [Narrator] Ben & Jerry's centered its business
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on an idea it calls linked prosperity,
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which means that has the company profits,
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its communities should too.
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So when Ben & Jerry's needed investors
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to build its first manufacturing facility in 1984,
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it offered stock exclusively to Vermont residents first
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as a way to give back to the community
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where it got its start.
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A year later, the Ben & Jerry's Foundation was born.
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It received 7.5% of the company's annual pre-tax profits
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to fund community-oriented projects.
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In 2000, multinational food conglomerate Unilever
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bought Ben & Jerry's for $326 million
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but the ice cream maker negotiated a deal
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where it could maintain
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its own independent board of directors.
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- While Unilever has made statements
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over the years saying
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that these are not the issues of the whole company,
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they have not been able to stop Ben & Jerry's
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from making statements on social media
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that get a lot of attention
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because of how controversial they are.
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- [Narrator] After the killing of George Floyd in 2020,
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many companies started posting on Instagram
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to show their support for the Black Lives Matter movement.
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While Ben & Jerry's released this statement,
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saying "We must dismantle white supremacy."
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- They were so much more direct than other companies
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and that's where Ben & Jerry's
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has continued to be different.
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Because they've been doing this for decades,
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they have that credibility.
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- We need to have people sitting in at their Congress,
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people's offices, at their senators' offices
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and telling 'em we ain't leaving
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'til you pass a Green New Deal.
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(people cheering)
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- [Narrator] But these bold statements
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haven't been without backlash.
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For example, in 2021, Ben & Jerry's announced
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that it would stop selling its products
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in Jewish settlements in the Israeli-occupied West Bank
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and contested east Jerusalem.
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This decision was criticized by Jewish communities
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around the world.
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- And I will give up on my Ben & Jerry
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and everything that Unilever produces.
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- [Narrator] And by Israeli politicians.
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Two months later, several state funds sold
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or threatened to sell their investments in Unilever
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accusing the company of breaking state laws
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that prohibit the boycott of Israel.
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Unilever didn't respond to requests for comment.
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At the time, the company declined to discuss the divestments
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but reiterated its commitment to Israel.
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In February, Ben & Jerry's posted
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this tweet criticizing President Biden's decision
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to send US troops to Ukraine.
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- Unilever CEO said Ben & Jerry's needs
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to stay in their lane basically
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and said that they should not speak out about things
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that they're not experts in.
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- [Narrator] A spokesman from Ben & Jerry's said,
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"We don't believe one must be a foreign policy expert
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to promote the ideals of peace
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and to oppose armed conflict
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as a solution to solve problems."
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(spoon banging)
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In addition to its public statements,
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the company's social justice initiatives
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are also baked into every aspect of it business model,
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how the ice cream is made,
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how it's packaged and how it's served to consumers.
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- There you are. No problem.
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- Thank you, thank you very much.
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- [Narrator] For example, the brownies that are used
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in flavors like Half Baked come
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from a bakery in New York
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that hires people who face barriers to employment.
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Ben & Jerry's also uses milk and cream
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from family-owned dairy farms,
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and all of its flavors are fair trade certified
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which guarantees that farmers who grow vanilla,
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cocoa and coffee beans get a fair price
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for their harvest.
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- There's a flavor that's gonna be supporting
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the Poor People's Campaign.
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- [Narrator] For special edition flavors,
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Ben & Jerry's often works with nonprofit organizations.
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- And a portion of the proceeds
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will be donated to be supporting the campaign.
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- So it's a real influence,
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not just with consumers
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but also by using their profits
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to give back to these organizations.
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- Can I please have a Mint Chocolate.
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- [Narrator] Ben & Jerry's also has
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about 215 independently owned scoop shops across the US.
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As corporate activism becomes more important
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to consumers, we might see more companies voice their social
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and political stances online.
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So does this mean it's the end of an era for Ben & Jerry's?
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A spokesman from the company says,
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"Ben & Jerry's acts on values it cares about
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but trying to go at it solo was never the intention."
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(lively music)