British multinational company Unilever is facing growing pressure over subsidiary Ben & Jerry's adamant refusal to allow its Israeli franchisee to continue sales in Judea and Samaria, financial daily Globes reported Sunday.
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Ben & Jerry's moved in July to end a license for its ice cream to be sold in the Judea and Samaria, east Jerusalem and the Golan Heights, saying sales there were "inconsistent with its values."
The decision prompted massive criticism as well as accusations of discrimination and antisemitism against both companies.
Unilever, which has been trying to distance itself from the ice cream giant's move, has been facing increasing heat in the US, where dozens of states have passed anti-BDS laws banning investment of public pension funds or the awarding of government procurement contracts to companies that boycott Israel.
So far, Texas, New York, New Jersey, Florida and Arizona have divested their pension fund from the UK conglomerate, and US lawmakers are working to launch a Securities and Exchange Commission review if the regulatory implications of Ben & Jerry's decision and another 33 states have stated that they are considering taking similar action.
According to the report, Unilever's shares have dropped by 12% over the past few months.
Globes further noted that attorney generals from 12 states wrote to Unilever CEO Alan Jope expressing their deep concern over the fact that the company has allowed its subsidiary's decision to stand.
"Not only is Israel one of our nation's closest and most reliable allies, but it is also the only democratic nation in the region and has long been a force for peace and stability," their letter read.
The letter also charges Unilever and Ben & Jerry's with hypocrisy, noting that the Vermont-based ice cream maker did not boycott countries such as Russia, China, Saudi Arabia and Venezuela, which have a spotty track record on human rights and international law, nor has it boycotted sales in Iran "the hotbed of terrorism in the Middle East."
The letter concludes by threatening to act against Unilever with the full force of the legislation against BDS.
Ben & Jerry's Israel CEO Avi Zinger told Globes that both Unilever and Ben & Jerry's underestimated the backlash over the move.
Zinger, who has appeared in several US forums on this issue, added that he has been told by "senior jurists, attorney generals and state attorneys from the Republican Party" that unless the decision was reversed, they would pursue "more severe legal and economic measures against Unilever and Ben & Jerry's, similar to the sanctions imposed on Iran and its banks."
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