An audit conducted by Magnum, Unilever’s ice‑cream unit that will own Ben & Jerry’s after the planned spin‑off, identified significant deficiencies in the financial controls and governance structure of the Ben & Jerry’s Foundation. The audit, released on December 3, 2025, highlighted gaps that could expose the foundation to mismanagement and potential misuse of its $5 million annual grant from the brand.
Magnum issued a statement clarifying that the audit was a routine governance review carried out in preparation for the spin‑off and that it was not an investigation of wrongdoing. The company emphasized that it is working with the foundation’s trustees to implement stronger controls, including a formal code of ethics, stricter conflict‑of‑interest policies, and trustee term limits. The foundation, founded in 1985, has historically been funded by Ben & Jerry’s and represents nearly 14 % of Magnum’s global turnover, compared with 1.8 % of Unilever’s overall revenue.
The audit findings come amid long‑standing tensions between Ben & Jerry’s and its parent companies. In 2021 the brand halted sales in the Israeli‑occupied West Bank, sparking legal disputes and accusations that Unilever attempted to suppress its political statements. The new governance review therefore carries heightened scrutiny, as any further missteps could jeopardise the brand’s reputation and the success of the spin‑off, which is expected to be listed in Amsterdam by the end of 2025.
From a business perspective, the audit raises the risk of regulatory scrutiny and could prompt Unilever to tighten oversight of its charitable entities. If the foundation fails to address the identified weaknesses, Unilever may consider reducing or suspending its annual grant, which would impact the foundation’s ability to fund social causes. The audit also signals to investors that Unilever is proactively addressing governance gaps ahead of the spin‑off, potentially mitigating reputational damage.
Magnum’s chief operating officer stated that the audit “reflects our commitment to good governance and transparency as we transition Ben & Jerry’s into an independent company.” The company plans to publish a detailed remediation plan within the next quarter and will monitor the foundation’s compliance with the new controls. The audit’s findings are expected to influence stakeholder confidence as the spin‑off proceeds, but the company’s prompt response and planned corrective actions suggest a measured approach to risk management.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.