Unilever sells Ben & Jerry's Israeli business to defuse row

Tubs of ice-cream are seen as a labourer works at Ben & Jerry’s factory in Be’er Tuvia, Israel July 20, 2021. REUTERS/Ronen Zvulun

June 29 (Reuters) – Unilever (ULVR.L) on Wednesday sold its Ben & Jerry’s ice cream business in Israel to its local licensee for an undisclosed sum, aiming to smooth over a potentially damaging diplomatic row.

The deal comes after the U.S. ice cream brand announced last year it would stop marketing products in the occupied Palestinian territories, saying that selling there was “inconsistent” with its values.

Israel condemned the move as “morally wrong” and said Unilever would face “severe consequences”. The consumer goods giant defended Ben & Jerry’s autonomy, but said it was “fully committed” to Israel and would find a solution by the end of this year.

Under the new arrangement, welcomed…