Ben&Jerry’s business model

Ice cream is a snack or dessert that is loved by millions of people. There is something in this frozen food, made from dairy products and fruits or other flavours, that makes it delicious. However, when you are having your ice cream, you are not usually thinking about all the process and people that are behind its production. Nevertheless, for Ben&Jerry’s this is a core aspect.

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Since 1978, this brand has been selling ice creams. They started with a small shop in Vermont and now they are present in many countries in the world. CEO, Jostein Solheim believes that nowadays the world is living critical challenges and changes, such as climate change or the uncertain global economy.

Even if they are just ice cream makers, they believe that as members of the society they are responsible to take actions to bring positive change. To do this their mission is divided into 3 parts: the product, the economic and the social mission.imgres

First of all, Ben&Jerry’s must ensure that they keep doing what they do best: ice creams. Their products keep to be all natural and of the finest quality. Secondly, they operate with the objective to bring value to their stakeholders and employees. Finally, they want to use their company in innovative ways to make the world a better place.  As you can see in the video below, they support family farms, products like sugar or coffee are fair trade certified and the packaging is environmentally sustainable.

I believe that this vision of being responsible for their actions as members of the planet should be implemented in other companies. Ben&Jerry’s is a leader in this aspect because there are many researches that show how there is an up growing trend of people being aware of the sustainability of the products they are purchasing. As this tendency grow, more companies will see how important is to take responsibility on their actions and to try and improve the world through their performance.

References:

http://www.benjerry.com/about-us/sear-reports/2014-sear-report

http://www.stuff.co.nz/business/industries/77987584/Sustainable-companies-reap-benefits-of-increasingly-conscious-consumers

3 Comments

  1. Hi Maria. Great post, although I’m now craving ice cream! Ben and Jerry’s is certainly a leader when it comes to responsible business. The interesting thing is that not many people are aware of their efforts, people are more interested in their wacky flavours than anything else. What people might be horrified to find out is that they are actually a subsidiary of Unilever, you know, that company responsible for mass deforestation that sustainability-minded folk abhor. This seems to be quite a trend these days: large, multinational companies acquiring businesses with a social mission (another example is Clorox’s purchase of Burt’s Bees). What are your thoughts on responsible companies being acquired by traditionally unsustainable corporations?

  2. Ben & Jerry’s is not a company from which i have personally hears any rumours recenlty, or i believe ever. This is great because it implies that operations have been honest and constant. A shift towards sustainable operations will help the company have more cost effective operations. More important, it is slowly taking into account every stakeholders well being into the equation.
    I am surprised however that Ben & Jerrys is not a major case in studies about sustainable companies. IT is a big, well known company however, one does not necessarily relate that name to sustainable practices. The marketing efforts need to focus more on showing how their operation is sustainable and the product maintains its quality. I wonder if they are trying to decrease their budget allocation in marketing to focus on developing a green supply chain and promote when it is actually set up. Already taking steps to find third party certifications is a good way to set up an operation system that will be trusted by customers. Hopefully a good marketing campaign is coming after the complete development of green implementations. It is clear that Benny’s has a priority in making their business beneficial for society and producers as well.

  3. Ah Maria thank you for sharing this, I have been waiting for someone to blog about Ben and Jerry’s! I consider myself an ice cream addict, but I guess there’s worse things out there right? I admire Ben and Jerry’s for their sustainability initiatives. I think they are really paving the way for the food and beverage industry. Like we have discussed in class, they have put value first, and then sustainability second. However, I do think Ben and Jerry’s has a higher advantage in the desert industry, considering they are a higher margin product. It is possible that their higher-income target consumers may place a higher value on these social missions, then the lower-income consumers who buy the cheaper ice cream alternatives? Regardless, I think this transition into sustainability is inevitable for all companies, and I commend Ben and Jerry’s for getting a head start!

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