Ben & Jerry's Supply Chain Assignment

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Supply Chain in the Consumer-Packaged Goods Industry: Ben & Jerry’s By: Ornel Alfonso and Joseph Gimondo

Table of Contents Introduction ......................................................................................................................................................... 1 Purpose of Report .................................................................................................................................................... 1 Report Structure ....................................................................................................................................................... 1 Overview .............................................................................................................................................................. 2 Unilever Purchase .................................................................................................................................................... 3 Ben & Jerry’s Today .................................................................................................................................................. 3 Suppliers .............................................................................................................................................................. 4 Souring Organic Materials ....................................................................................................................................... 4 Reducing Petroleum-Based Plastics ......................................................................................................................... 4 Production ........................................................................................................................................................... 5 Distribution ........................................................................................................................................................ 10 Ice Cream Delivery ................................................................................................................................................. 10 Distribution Struggles ............................................................................................................................................. 11 Consumption ...................................................................................................................................................... 12 Ben & Jerry’s Pints .................................................................................................................................................. 12 Conclusion .......................................................................................................................................................... 13 Reference List: .................................................................................................................................................... 14

Introduction In the ice cream industry, Ben & Jerry’s has carved out a distinctive niche and aesthetic with its consumer-packaged offerings. This report is designed to understand the levels of Ben & Jerry’s supply chain by examining its suppliers, production processes distribution, and consumption. Through research and analysis, the fundamental goal is to identify areas of strength and offer insight and explanation into why Ben & Jerry’s does what they do. Purpose of Report The primary purpose of this report is to provide a comprehensive understanding of Ben & Jerry’s supply chain regarding the CPG industry. With a deep analysis of Ben & Jerry’s operation, the report is aimed at the major components discussed and will serve as a roadmap, each playing a crucial role in shedding light on different areas of Ben & Jerry's supply chain. Report Structure Overview: Offering a view of Ben & Jerry’s background, how it was made and their rise in the CPG industry. This section will help you get an understanding of how everything came about, a brief history of their founders, and what they are doing today. Suppliers: Examining the sourcing and relationships with suppliers, in this section, we will evaluate the design process, and the materials sourced, and analyze the overall supply and procurement process of Ben & Jerry’s. Production: A detailed analysis of Ben & Jerry’s manufacturing process, highlighting its assembly, its step-by-step production process, and many other important factors included in the production line. Distribution: This section focuses entirely on how the product gets to the consumer. From the farms to the stores, in this area, we will try the different distribution channels Ben & Jerry’s may possess. Consumption: Concluding our research, this topic focuses on consumer behaviour, and how they go about purchasing any of Ben & Jerry’s products.

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Ben Cohen and Jerry Greenfield outside their storefront in Burlington, VA 1980 Ted Dully – Boston Globe/Getty Images. Original packaging of the "Cherry Garcia" flavour released in 1987 - image captured from Ben & Jerry's company website Overview Ben & Jerry’s ice cream started back in 1978, when two friends, Ben Cohen and Jerry Greenfield found a common bond over their love of food. After receiving a 5$ diploma in an ice-cream-making course at Penn State, they invested whatever money they had into an abandoned gas station in Vermont and renovated that into the first Ben & Jerry’s ice cream shop (Fabry, 2018). Due to Cohen being diagnosed with anosmia, a condition in which you cannot smell, led to the creation of the company’s trademark chunks of flavour being mixed in with their ice cream (About Ben & Jerry’s, n.d). After one year of business, Ben & Jerry’s celebrated by giving away free ice cream cones, a tradition that is still held annually today. Due to the business growing so fast, and the demand started to grow, the boys rented out a space where they began packing their ice cream in pints and started distributing the ice cream to mom-and-pop shops and other grocery stores (About Ben & Jerry’s, n.d). In 1991, Ben & Jerry’s started selling their most popular product, the chocolate chip cookie dough ice cream which became a homerun. In just a year’s time, the flavour accounted for almost 20% of Ben & Jerry’s revenue (Lii, 1992). Over the years, Ben & Jerry’s has been very aware of pop culture and has done a variety of pint collaborations with several celebrities. The most popular flavour was their first collaboration in 1987 with the Cherry Garcia ice cream named after band Grateful Dead guitar legend (Our 12 Favorite Music-Inspired Pints, 2020). Other collaborations include Ron Burgundy, Glastonbury Music Festival, DaveMatthews Band, and Bob Marley.

“Pecan Resist” ice cream flavour released to promote activism - image captured from USAToday Unilever Purchase In April 2000, Ben & Jerry’s sold their business to billion-dollar CPG company Unilever for $326 million dollars (Meadows, 2000). Although this sale was a little different from a usual Unilever acquisition. In their sale agreement, Ben & Jerry’s negotiated to have a separate board that had control over their brand integrity, policies, and social missions (Solon, 2019). Also, during the sale, the boys negotiated that Unilever donate $5 million dollars to the Ben & Jerry Foundation which is geared toward helping the community (Clark, 2000). The idea for Unilever to purchase was to expand the brand internationally which they believed could rack in hundreds of millions of dollars. Ben & Jerry’s deal was also different in a sense as they are the only company under Unilever to have their own appointed CEO (Kroncke & Wyatt, 2018). Along with that, Ben & Jerry’s was allowed to have a board with only two appointed Unilever members, allowing the founders to still have control over their company (Giang, 2022). Ben & Jerry’s Today Today, under the operation of Unilever, Ben & Jerry’s is still thriving. In 2022, they were the leading ice cream brand in North America amassing over $900 million dollars in sales (Wunsch, 2023). To add to their stellar financials, Ben & Jerry’s continues to remain active in being socially responsible. Throughout the years, they have advocated for same- sex marriage, testing on cloning meat, and have committed to using fair-trade ingredients and supporting farmers (Kroncke & Wyatt, 2018). On a more serious note, they have also spoken up on issues regarding climate change, refugee rights and most notably calling for the end of white supremacy after the shooting of George Floyd (Ziady, 2020). Using their platform Ben & Jerry have always voiced expression through their ice cream. In 2018, they released a flavour called “Pecan Resist” to promote activism in the United States (Meyer, 2018). “The company cannot be silent in the face of President Trump’s policies that attack and attempt to roll back decades of progress on racial and gender equity, climate change, LGBTQ rights and refugee and immigrant rights – all issues that have been at the core of the company’s social mission for 40 years” – Ben & Jerry’s

Concept of 100% petroleum-free based packaging to be fully recyclable and biodegradable - captured from Ben & Jerry's company website Suppliers Ben & Jerry’s product design and materials sourced are carefully thought out to be able to fulfill their key initiatives such as reducing petroleum-based plastics and responsibly sourcing packaging. Souring Organic Materials Ben & Jerry's is proud to be a part of the consumer movement for transparency to know what is in our food supply, which is why they decided to support mandatory GMO labeling legislation in 2013 ( About Us , n.d.). Additionally, they pledged to completely transfer all their ingredients to non-GMO sources. This is still demonstrated today as Ben & Jerry's only uses raw milk from hundreds of local farmers and exclusively uses St. Albans Cooperative Creamery to prepare it locally ( How We Make Ice Cream , n.d.). Reducing Petroleum-Based Plastics By 2025, Ben & Jerry's hopes to have all their plastic packaging made without petroleum, be recyclable, biodegradable, or reusable ( Sustainable Packaging , 2021). The ice cream containers are currently made from a single-sided plant-based polyethylene on a more environmentally friendly European paperboard. Chemically, this coating is the same as plastic derived from petroleum, but switching to a plant-based version will result in a yearly reduction of around 88,000 pounds of plastic usage. Their Forest Stewardship Council (FSC) Certification guarantees that the paperboard is ethically obtained and does not contain weed pulp from ancient or endangered forests. They are furthering this through their partnership with Canopy and their Pack4Good program, which combats the usage of plastics derived from petroleum in a variety of ways. To reduce their environmental effect, Pack4Good advocates using paper-based packaging with a high recycled content and sourcing wood fiber exclusively from forests that are ethically managed ( Paper-Based Packaging Standard , n.d.).

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Diagram of the blend tank process - captured from Ben & Jerry's company website Production Ben and Jerrys follows a thirteen-step process in their production and assembly section of the end-to-end supply chain ( How We Make Ice Cream , n.d.). Step 1: Farms The initial phase in the manufacturing process is the sale of raw milk, which is split into heavy cream and condensed skim milk at the St. Albans Cooperative Creamery in St. Albans, Vermont, from hundreds of nearby farms. The second process is then initiated by shipping these two items to the Ben & Jerry's factories in St. Albans and Waterbury Vermont ( How We Make Ice Cream , n.d.). Step 2: Factories The milk and cream are kept in these establishments until they are needed. To ensure appropriate preservation and optimal condition for the Blend Tank in the third step, they are stored in 6000-gallon storage silos at 36 degrees ( How We Make Ice Cream , n.d.). Step 3: Blend Tank In the third step, the mix-making processes are carried out using the Blend Tank, a 1000-gallon stainless steel mega-blender. Mixed in this blender are egg yolks, liquid cane sugar, heavy cream, condensed skim milk (from the previous step), and occasionally cocoa powder for chocolate flavors, the ice cream mixture also contains natural stabilizers to keep it from going bad. Blending all these ingredients in the Blend Tank for 6 to 8 minutes, results in a chocolate mix or a sweet cream mix, which is then moved to the Surge Tank ( How We Make Ice Cream , n.d.).

Pasteurization and Homogenization process - captured from Ben & Jerry's company website Step 4: Pasteurization & Homogenization The mixtures are combined and then kept in the Surge Tank until they are prepared for homogenization and pasteurization. Using a pasteurizer consisting of a series of extremely thin stainless-steel plates, hot water at 182 degrees flows on one side of the plates while cold mix, at 36 degrees, is flown through the other side of the plates, heating the mixture to 180 degrees. Pasteurizing is a process used to kill harmful bacteria. The mixture is placed in the homogenizer before its temperature lowers, forcing the mixture through a tiny hole at a very high pressure ( How We Make Ice Cream , n.d.). Step 5: Flavour Vats After the simmering, the mixtures are pumped from the Tank Room to the 500- gallon stainless steel Flavour Vats. Here, purees and extracts such as fruit extracts, vanilla, banana puree, pure peppermint, and occasionally liqueurs transform the blends into various flavors. This is the last stage before the mixture is made into ice cream in step six Step 6: Freezer The mixes are then pumped from the flavour vats to the freezer, which runs them through an extremely cold cylinder at 36 degrees. This allows the mixture to slowly freeze and be scraped away throughout the cylinder. At 22 degrees, the mix is a soft-service consistency; it is no longer just a mix; it has become ice cream ( How We Make Ice Cream , n.d.).

Diagram of step 8 - captured from Ben & Jerry's company website Step 7: Chunk Feeder The seventh phase involves adding all the chunky flavourings, such as chocolate chip cookie dough, candy, nuts, fruits, and many more, to the ice creams with chunky flavors. This is accomplished using the Chunk Feeder, which serves as a mixer by evenly blending the pieces into the ice cream, guaranteeing a consistent distribution of chunks throughout the whole batch ( How We Make Ice Cream , n.d.). Chunk Feeder diagram - captured from Ben & Jerry's company website Step 8: Contherm and Variegator The eighth phase involves using a Contherm, Variegator, and variegate-guidance system to create swirls of toppings throughout the ice cream. Before being injected into the ice cream stream through the Variegator, the variegates must first be properly chilled after passing through the Contherm. This is the final step before the ice cream is packaged in the ninth stage ( How We Make Ice Cream , n.d.).

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Step 9: Automatic Filler The Automatic Filler is the machine that is utilized in the ninth stage to dispense ice cream into pint containers. The Automatic Filler fills around 120 pints per minute by putting the pints into place for the filler head to fill, encloses ice cream in pints by applying lids, and uses a conveyor belt to move the pints to the next step ( How We Make Ice Cream , n.d.). Diagram of step 9 - captured from Ben & Jerry's company website Step 10: Spiral Hardener Since the ice cream is still semi-frozen at 22 degrees, the ice cream will have to be frozen further to negative 10 degrees or colder before being stored or shipped. The pints of ice cream are transported into the Spiral Hardening Tunnel for three hours as part of a process known as hardening, which is done by the Spiral Hardener. This tunnel is set at minus 30 degrees and features large fans to provide a colder wind-chill temperature of minus 60 degrees, and by the end of the three hours the ice cream is fully frozen at minus 10 degrees and is ready to be packaged step eleven ( How We Make Ice Cream , n.d.). Diagram of step 10 - captured from Ben & Jerry's company website

Quality Assurance lab at Ben & Jerry's - captured from Ben & Jerry's company website Step 11: The Bundler The frozen pints are now being packaged in preparation for shipping, marking the eleventh and last phase in the ice cream preparation process. To begin, each pint is turned upside down and divided into two rows of four. Once the pints are correctly assembled, they are placed inside the Bundler, a heat tunnel that shrink-wraps plastic sleeves around each eight pints. Each sleeve is a gallon of ice cream and are stacked onto shipping pallets and stored at minus 20 degrees in a warehouse while waiting for the final two steps ( How We Make Ice Cream , n.d.). Diagram of step 11 - captured from Ben & Jerry's company website Step 12 & 13: Quality Assurance & Destination In the twelfth and thirteenth step the Quality Assurance Lab ensures that every type of Ben & Jerry’s ice cream meets their strict standards of product excellence, so that they are ready to be distributed around the globe in many different stores and places ( How We Make Ice Cream , n.d.).

Distribution Starting in a gas station in 1978, Ben & Jerry’s has grown on an international level. According to their company website, Ben & Jerry’s can be purchased in every continent in the world, excluding Africa (Where in the World Are We, n.d). They operate in the United States and have plants in Vermont, and the Netherlands (Schug, 2017). Ben & Jerry’s has many distribution methods, as a consumer, you can find pints of ice cream at wholesalers, grocery stores, supermarkets, restaurants, and even movie theatres. Not the mention the number of Ben & Jerry scoop shops around the world as well (How We Make Ice Cream, n.d). Ben & Jerry's current distribution channels - chart grabbed from http://www.slideshare.net/connectshivak/ben-n-jerry-gnims Ice Cream Delivery When it comes to distribution, Ben & Jerry’s has been very adaptable in their distribution methods when it comes to getting their products to their consumer. However, during the pandemic, there was a massive problem that needed to be addressed. Due to the world being practically shut down, it was almost impossible to distribute products the traditional way. Piggybacking through Unilever, they created an online ice cream shop through delivery partners like UberEATS, DoorDash, Postmates, and GrubHub (How Unilever pioneered ice-cream home deliveries, 2021). The results of this innovation were tremendous, generating over 20 million dollars of delivery sales in 6 months, selling over 700 pints an hour (How Unilever pioneered ice-cream home deliveries, 2021). This risk that paid off introduced a new category in the e-commerce space and showed that selling ice cream directly to consumers can work.

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Distribution Struggles Throughout the years, Ben & Jerry’s never really had any distribution issues due to being backed by such a powerhouse in Unilever. In 1984, while Ben & Jerry’s was rapidly growing in the ice cream industry, a competitor was trying to pause their growth. Haagen-Dazs, a company owned by Pillsbury had told their distributors that they would refuse to do business if they still carried Ben & Jerry’s products in their stores (Cookies, Cream, N’ Controversy, 1993). At the time, Ben & Jerry’s was not big enough to fight back with their limited resources. This resulted in Ben & Jerry’s fighting back in the form of a publicity campaign which they named “What’s Doughboy Afraid Of?” taking shots at the Pillsbury mascot (Egessa, 2016). Both Cohen and Greenfield took to the streets and used low-cost advertising such as small planes flying their slogan across stadiums which helped garner lots of attention (Egessa, 2016). The relentless pursuit of the small-town boys and their ability to captivate their customers' interests started quite the outrage, forcing Pillsbury to back off. Ben & Jerry's were able to use their customer support as an advantage, making a real David & Goliath story come true. Jerry of Ben & Jerry's protesting outside Pillsbury HQ source:https://innovationsjournal.net/how-ben-jerrys-took-on- pillsbury-and-won-13959a83730e

Consumption In 2024, you can now easily find Ben & Jerry's ice cream pints worldwide. Primarily they are sold across grocery stores and supermarkets. However, the easiest way to get their delicious ice cream is online. You can directly go on Ben & Jerry’s website and order whatever flavour you please and it will be delivered directly to your house. A common misconception is that if you deliver online, the ice cream can melt before it is delivered, although there is a workaround for that. Ben & Jerry’s partners with instant delivery programs that guarantee the ice cream is packed properly to ensure they are frozen at the time of delivery every time (How to get Ice Cream Delivered, n.d). Ben & Jerry’s Pints Ben & Jerry’s is known for their out of the box flavour combinations but are also popular through their pint sized packaging as well. It is very distinct, colourful and can be easily spotted in a store. Before, they became so famous, Ben & Jerry’s primarily sold in bulk to restaurants (Do you remember when Ben & Jerry Pints looked like THIS?, n.d). This changed when Ben wanted to sell direct to consumers, thus the pint was born. Since the 1980s, Ben & Jerry’s continues to sell pints in small sizes so consumers can comfortably eat. A pint size container of ice cream is around 16 ounces or 473mL, enough to fill you up (An update on our pints, n.d). Ben & Jerry's 473mL pints - image captured from Google Images

Conclusion Ben & Jerry’s, established in 1978 by Ben Cohen and Jerry Greenfield, has grown into a well-known and reputable ice cream brand, renowned for its unique flavours and commitment to social and environmental responsibility. Being under the ownership of Unilever since 2000, Ben & Jerry’s has managed to sustain its identity while also growing exponentially, becoming the leading ice cream brand in North America with $900 million recorded in sales in 2022. One important factor of Ben & Jerry’s supply chain is its dedication to sustainable practices and responsible sourcing. From using organic materials (non-GMO), to pledging to eliminate petroleum-based plastics from their packaging by 2025, Ben & Jerry’s proves their commitment to environmental awareness. And their tedious production process from sourcing raw milk all the way to packaging reflects a dedication to making quality and flavourful ice cream. This dedication is also shown in distribution as Ben & Jerry’s has adapted to their situation such as during the Covid-19 pandemic when they successfully moved to online ice cream delivery through many partnerships. Ben & Jerry’s has always maintained a strong connection with their consumers, by engaging in collaborations and advocating for social justice. They do not only deliver a delightful ice cream experience but also stands as a testament to their intuitive integration of business success, sustainability, and social responsibility. Ben & Jerry’s is a great example for any business that wants to succeed while also practicing ethically.

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Reference List: About Ben & Jerry’s . https://www.benjerry.com. (n.d.-a). https://www.benjerry.com/about-us Ben & Jerry’s. (2020, July 20). Our 12 favorite music-inspired pints . https://www.benjerry.com. https://www.benjerry.com/whats-new/2018/05/music-inspired-pints Ben & Jerry’s. (2020, November 4). Do you remember when Ben & Jerry’s Pints looked like this? https://www.benjerry.com. https://www.benjerry.com/whats-new/2016/pint- evolution#:~:text=For%20a%20while%2C%20our%20co,It%20was%20genius. Clark, G. (2000, April 13). Unilever’s Ben & Jerry’s buyout keeps activism intact . Unilever’s Ben & Jerry’s Buyout Keeps Activism Intact. https://www.foodonline.com/doc/unilevers-ben-jerrys-buyout-keeps- activism-in- 0001#:~:text=B%20%26%20J’s%20board%20of%20directors,million%2C%20company%20officials %20announced%20today. The Drum. (2021, November 4). How unilever pioneered ice-cream home deliveries . The Drum. https://www.thedrum.com/news/2021/11/04/how-unilever-pioneered-ice-cream-home-deliveries Egessa, P. (2016, December 14). How ben & jerry’s took on Pillsbury and won . Medium. https://innovationsjournal.net/how-ben-jerrys-took-on-pillsbury-and-won-13959a83730e Fabry, M. (2018, May 4). Ben & Jerry’s founding story: How they changed ice cream . Time. https://time.com/5252406/ben-jerry-ice-cream-40/ How to get ice cream delivered . https://www.benandjerrys.ca. (n.d.). https://www.benandjerrys.ca/en/whats-new/2020/04/ice-cream-delivery How we make ice cream . https://www.benjerry.com. (n.d.-b). https://www.benjerry.com/about-us/how-we- make-ice-cream?our-13-step-process-=tab-13-destination-everywhere Kroncke , D., & Wyatt, S. (2018). Managing social responsibility and growth at Ben & Jerry’s. https://harbert.auburn.edu/binaries/documents/center-for-ethical-organizational-cultures/cases/ben- and-jerrys.pdf Lii, J. H. (1992, August 2). All about/ice cream; in the cut-throat world of ice cream, Flavormania! . The New York Times. https://www.nytimes.com/1992/08/02/business/all-about-ice-cream-in-the-cut- throat-world-of-ice-cream-flavormania.html Meadows, D. (2000, April 13). The Globalization Of Ben And Jerry’s. https://web.archive.org/web/20000901230848/http://commondreams.org/views/041300-106.htm Meyer, Z. (2018, October 30). Ben & Jerry’s launches Donald Trump-inspired ice cream flavor, pecan resist . USA Today. https://www.usatoday.com/story/money/2018/10/30/ben-and-jerrys-ice-cream- flavor-pecan-resist-trump/1811714002/

Newsweek. (2010, March 14). Cookies, cream “n” controversy . Newsweek. https://www.newsweek.com/cookies-cream-n-controversy-194604 Paper-based Packaging Standard . https://www.benjerry.com. (n.d.-c). https://www.benjerry.com/values/how-we-do-business/paper-based-packaging-standard Schug, D. (2020, October 22). How ben & jerry’s successfully manages its plants . Food Engineering RSS. https://www.foodengineeringmag.com/articles/97116-how-ben-jerrys-successfully-manages- its-plants#world-class Solon, O. (2021, July 19). Ben & Jerry’s withdraws from Israeli settlements, clashes with parent company Unilever . NBCNews.com. https://www.nbcnews.com/business/business-news/ben-jerry-s- withdraws-sales-israeli-settlements-clashes-parent-company-n1274403 Sustainable Packaging . https://www.benjerry.com. (n.d.-d). https://www.benjerry.com/values/how-we-do- business/sustainable-packaging An update on our pints . https://www.benandjerrys.ca. (n.d.-a). https://www.benandjerrys.ca/en/whats- new/2022/03/an-update-on-our-pints Where we do business . https://www.benjerry.com. (n.d.-e). https://www.benjerry.com/about-us/where-we- do-business Wunsch, N.-G. (2023, December 11). Best-selling ice cream brands U.S. 2022 . Statista. https://www.statista.com/statistics/190426/top-ice-cream-brands-in-the-united-states/ Ziady, H. (2020a, June 5). Ben & Jerry’s statement on white supremacy is so extraordinary. ... CNN Business. https://www.cnn.com/2020/06/03/business/ben--jerrys-george-floyd/index.html Ziady, H. (2020b, June 5). Ben & Jerry’s statement on white supremacy is so extraordinary. ...Why Ben & Jerry’s statement on white supremacy is so extraordinary . CNN Business. https://www.cnn.com/2020/06/03/business/ben--jerrys-george-floyd/index.html

Ben & Jerry's Supply Chain Assignment

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