Company Background: Ben & Jerry's Homemade Inc.

Ben & Jerry's Homemade Inc.

Socially conscious ice cream giant Ben & Jerry's claims its mission is about more than merely fattening shareholders' pocketbooks (7.5% of before-tax income goes to charitable programs). But when it comes to fattening the general public, the Waterbury, Vermont-based company is all for it. Ben & Jerry's has seduced 42% of the super-premium ice cream market and is the leader in the frozen yogurt market. Its products are sold in supermarkets, convenience stores, and restaurants in the eastern, southern, and western US and in the UK; Dreyer's distributes its products on contract in other markets. In addition, the company franchises 105 Ben & Jerry's "scoop shops" in the US and Canada, operates a joint venture scoop shop in Russia, and has a licensing agreement with an Israeli ice cream venture. Cofounders Ben Cohen and Jerry Greenfield control 35.4% and 6.7% of the shareholders' votes, respectively.

Cohen's first involvement with ice cream, other than eating it, was in 1968 when he worked as an independent mobile ice cream retailer with Pied Piper Distributors of Hempstead, New York. In 1977 he moved to Vermont to start Ben & Jerry's with Greenfield. In 1978, with $12,000, Ben & Jerry's opened in a vacant gas station. The first franchise followed in 1981, distribution outside Vermont began in 1983, and the company went public in 1984.

In 1994, with profits falling due to stiff competition and manufacturing inefficiencies, the company suffered its first-ever loss. Cohen stepped down as CEO and the company launched its Yo! I'm Your CEO! essay contest, receiving more than 25,000 responses before naming Robert Holland new CEO and president. (Holland was recruited from an executive search firm and wrote his essay/poem after accepting the post. In hiring him, the company broke its pledge to keep executive salaries no more than 7 times that of its lowest-paid employee.) President and COO Chuck Lacy resigned after Holland's appointment.

In hopes of expanding market share through sales of more traditional flavors, Ben & Jerry's introduced its Smooth, No Chunks! line in 1994. Three new No Fat Yogurt flavors and Chubby Hubby ice cream were added in 1995.

OFFICERS

Chairperson: Ben Cohen, age 43, $132,500 pay
VC: Jerry Greenfield, age 43, $132,745 pay
President and CEO: Robert Holland Jr., age 54, $250,000 pay
CFO, Treasurer, and Secretary: Frances Rathke, age 34, $122,009 pay
Director Social Mission and Acting Director Human Resources: Elizabeth Bankowski, age 47, $116,131 pay
Auditors: Ernst & Young LLP

LOCATION

HQ: Duxtown Commercial Plaza, Junction of Rts. 2 and 100, Waterbury, VT 05676
Phone: 802-244-6957
Fax: 802-244-5944
URL: http://www.benjerry.com

PRODUCTS/SERVICES

                                    1994 SALES
                                    % of total
Packaged pints                           85
2 1/2-gallon containers                   7
Novelties                                 5
Company-owned scoop & gift shops          3

Total                                   100

SELECTED FLAVORS:
FROZEN YOGURT
Coffee Almond Fudge
English Toffee Crunch
Low Fat Apple Pie
Low Fat Cherry Garcia
Low Fat Chocolate Fudge Brownie
No Fat Cappuccino
No Fat Strawberry
No Fat Vanilla Fudge

ICE CREAM NOVELTIES
Peace Pops

ICES
Lemon Daiquiri
Mandarin
Raspberry

SMOOTH, NO CHUNKS! ICE CREAM
Aztec Harvests Coffee
Deep Dark Chocolate
Double Chocolate Fudge Swirl
Mocha Fudge
Vanilla
Vanilla Bean
Vanilla Caramel Fudge
White Russian

SUPER PREMIUM ICE CREAM
Butter Pecan
Cherry Garcia
Chocolate Chip Cookie Dough
Chocolate Fudge Brownie
Chubby Hubby
Chunky Monkey
Coconut Almond Fudge Chip
Coffee Toffee Crunch
English Toffee Crunch
Mint Chocolate Cookie
New York Super Fudge Chunk
Peanut Butter Cup
Rainforest Crunch
Wavy Gravy