BEN & JERRY’S HOMEMADE
~ Case Analysis ~
I. PROBLEM STATEMENT
Ben and Jerry’s, founded in 1978, is a market leading distributor of super-premium ice creams, frozen yogurts, and sorbets, and has built a reputation on being a socially minded company. They were pioneers in the policy of “caring capitalism” and place heavy importance on the concept of social responsibility, a practice which many companies have since adopted. They have enjoyed long-term success as a result of their progressive methods of doing business and novel ideology regarding how a company should be ran. However, due to increased competitive pressure and declining financial performance, they have now been confronted by the threat of a takeover. Recently four …show more content…
In order for this to be a feasible solution, Dreyer’s would have to substantially increase their offer of stock or offer cash.
2. Merge with Unilever at an offer price of $36 (cash)
There are many pros to this offer. Unilever is the largest ice cream producer in the world and like Dreyer’s, already has an extensive distribution network and extensive knowledge of the market. With an offer of $36 (cash), Unilever had by far the best looking offer on paper. They also have a market capitalization of $18 billion and can provide the financial backing that Ben & Jerry’s needs. On the other hand, there are a large number of cons and a huge amount of risk. B & J would have to give up a great deal and essentially “sell its soul” if it were to accept this offer. Unilever has no intention of keeping with B & J’s corporate vision and practices of social responsibility which made B & J a household name in the first place. Unilever is a much larger and more diversified corporation than the others and simply won’t be able to put in the “t.l.c” into the product that Ben & Jerry’s has built their reputation around. As a result, brand loyalty will drop significantly as will B & J’s value. If Unilever were to adhere to B & J’s social charter this would be a much more attractive offer.
3. Merge with Meadowbrook Lane at an offer price of $32 (cash)
Meadowbrook, like Ben & Jerry’s, portrays itself as a
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