Jason, Gergana, Chris http://owl.english.purdue.edu/owl/resource/747/01/

Dr. Miller, OMS 511

April 2, 2010

Ben & Jerry’s Ice Cream Supply Chain

1) Introduction

Ben & Jerry's is an American ice cream company that manufactures ice cream, frozen

yogurt, sorbet, and ice cream novelty products, headquartered in South Burlington,

Vermont. The company is most famously known for their innovative and cleverly named

ice cream flavors such as Cherry Garcia, Chubby Hubby and Imagine Whirled Peace

(Wikipedia-Ben & Jerry’s).

Ben and Jerry’s began in 1978 when lifelong friends and dedicated activists Ben Cohen

and Jerry Greenfield invested $12,000 to open an ice cream parlor in a renovated gas

station in downtown Burlington, Vermont. In 1980, the pair rented space in an old spool

and bobbin mill in Burlington and began packing their ice cream in pints. In 1981, the

first Ben & Jerry’s franchise opened. The company became wildly popular by using fresh

milk from Vermont and concocting imaginative ice cream creations. The pair has made it

known that they were “in this business to create some good in the world and enjoy

themselves while they earned a living” (benjerry.com).

The Ben & Jerry’s Foundation was established in 1985 to fund community-oriented

projects; with the company providing 7.5% of their annual pre-tax profits. In 1988, the

pair won the title of U.S Small Business Persons of The Year, awarded by U.S. President

Ronald Reagan (benjerry.com).

In April 2000, Ben & Jerry's announced its acquisition by multinational food giant

Unilever. Ben and Jerry created an ice cream shop that over time evolved into a

worldwide ice cream distributor and was purchased for $326 million (benjerry.com).

Unilever said it hopes to carry on the tradition of engaging "in these critical, global

economic and social missions." Although the founders are still engaged with the

company, they do not hold any board or management position and are not involved in

day-to-day management of the company ("Ben & Jerry's & Unilever to Join Forces").

2) The company’s strategy and how they align the supply chain

According to Ben and Jerry’s website there are three interrelated sections that comprise

the company’s mission:

Product Mission : “to make, distribute and sell the finest quality, all natural ice cream

and euphoric concoctions with a continued commitment to incorporating wholesome,

natural ingredients and promoting business practices that respect the Earth and the

Environment”.

Economic Mission- “to operate the company on a sustainable financial basis of

profitable growth, increasing value for their stakeholders and expanding opportunities for

development and career growth for their employees”.

Social Mission – “to operate the company in a way that actively recognizes the central

role that business plays in society by initiating innovative ways to improve the quality of

life locally, nationally and internationally”.

Ben and Jerry’s mission is founded on a prospering yet sustainable corporate concept

that the company addresses by seeking new and creative methods while respecting

individuals inside and outside the company (benjerry.com).

Respecting the Earth and the Environment

Ben and Jerry’s has taken their product mission’s pledge of environmental activism and

aligned it to their supply chain operations through various endeavors. They are pioneers

of the “Eco-Pint” packaging movement in 2001; an environmentally-friendly unbleached

paperboard container that was used until 2006. Additionally, they pioneered the testing of

the environmentally friendly refrigerant hydrocarbon in Boston and DC areas. Currently,

hydrocarbon is awaiting approval for widespread commercial use from the US

Environmental Protection Agency (EPA). They have also worked consistently with the

scientific community since 1999 to reduce their product freezers’ energy consumption

through thermoacoustic chilling, a technology that employs sound waves to keep frozen

products cool. Ben and Jerry’s has helped create awareness of CO2 emissions and the

environment by creating the “Lick Global Warming” campaign which educates people

on how to reduce their own CO2 emissions and how to get Congress to take action

against global warming. The company also has a commitment with Efficiency Vermont

(The nation’ first statewide provider of energy efficiency services) to target areas in their

operations for energy improvement; from waste reduction to installing more efficient

pipes to increase production (benjerry.com).

Ben and Jerry’s is a leader in creating environmentally friendly methods to reduce

their costs without reducing quality of their product. The company is a proud member of

the Ceres Companies, a national network of investors, organizations and groups working

with companies and investors to address sustainability challenges and achieve

competitive advantages by integrating environmental and social performance into their

business strategies (ceres.org). Their commitment over time to the environment has been

an example for other companies to follow.

Incorporating wholesome, natural ingredients

Ben and Jerry’s has verified their commitment to their product mission and aligning

their dairy supply chain by primarily purchasing their cream and condensed milk from

the St. Albans Cooperative Creamery in Vermont since 1990. The Co-op is a 500-plus

family of farmers that is an integral partner in the Dairy Stewardship Alliance, a unique

program that helps farmers move toward more environmentally friendly sustainable farm

practices. St. Albans is a supplier who does not use rBGH, a genetically engineered

growth hormone commonly injected into cows to increase milk production. Ben and

Jerry’s believe that the use of rBGH “is a step in the wrong direction toward a synthetic,

factory-produced food supply” (benjerry.com).

Ben and Jerry’s European production has been supplied with free-range eggs since

2004, so the U.S. transition to more humane supplied eggs was inevitable. Starting in

2007, Ben and Jerry’s began transitioning their eggs suppliers over to Certified Humane

cage-free farms suppliers. Upon completion of this in 2011, Ben and Jerry’s guarantees

that the entirety of their egg supply will come from hens “guaranteed to have wholesome

food, access to clean water, and adequate space for normal behavior” (benjerry.com). The

company claims that by demonstrating their willingness to absorb the extra cost of cage-

free eggs, they will give the cage-free industry time to expand supply to meet their

volume requirements. This landmark decision will make Ben & Jerry’s one of the first

national food manufacturers to commit to using Certified Humane cage-free eggs

(benjerry.com).

Ben and Jerry’s sources the following ingredients by collaborating with Fair Trade

suppliers. Fair Trade is the concept of paying the farmers/suppliers a premium wage that

lets them provide more adequately for their family and communities, leading to better

healthcare, education and housing and economic empowerment (benjerry.com).

Vanilla is supplied from a 1,200 small scale growers fair trade in western Uganda.

Macadamia nuts supplied that are ethically grown using sustainable farming

practices in Malawi. They are also dipped in chocolate that is Fair Trade.

Cocoa powder that comes from various Fair Trade suppliers such as the farmer

co-ops on the Ivory Coast and a co-op in Conacado that consists of about 10,000

small-scale farmers.

Coffee extract supplied from the Fair Trade certified Huatusco co-op located in

Mexico.

Improve the quality of life locally, nationally and internationally

Ben and Jerry’s social commitment to its consumers is fundamental to their corporate

mission. The company focuses on giving back to those that support them and help them

grow. In addition to using Fair Trade suppliers, Ben and Jerry’s also uses suppliers such

as Greyston Bakery, a business that provides employment and support services to former

homeless, low-income and disenfranchised individuals (benjerry.com). Greyston

brownies can be found in favorites such as “Brownie Batter”. The company’s goal is to

hire and train those who otherwise might not ever find a job, getting them on the path out

of poverty and on to self-sufficiency; this mission works hand in hand with Ben and

Jerry’s social commitment (benjerry.com).

Ben and Jerry’s promote a peaceful voice toward controversial issues. Over time, this

has been completed through creating and distributing unique ice cream products such as,

Imagine Whirled Peace or Stephen Colbert’s Americone Dream. The proceeds of these

products go to charities dedicated to improving lives (benjerry.com).

3) Supply Chain and Interaction with Strategy:

The supply chain for Ben and Jerry’s must take into consideration the type of

product that is being created. According to Marshall Fisher’s article, “What is the right

supply chain for Your Product”, “…in the traditionally functional category of food, Ben

and Jerry’s… have tried to gain an edge with designer flavors and innovative concepts

(106).” Since ice cream is a functional product, there is a life cycle of longer than 2

years. However, the innovation that Ben and Jerry’s frequently completes for their

product causes a not so clear image of what type of product they have created. Since the

type of supply chain used is confidential and not made publicly, research was needed to

determine what type of chain may be used. The supply chain used does try to use an

environmental friendly physical function. In addition, Ben and Jerry uses market

mediation strongly in delivering products to the consumer. They follow feedback and

flavor suggestions from consumers routinely. With all the information presented, we

concluded that the company may have an overall functional product but may have a

separate division committed to their new innovative flavors. The company should use an

efficient supply chain for their traditional flavors such as vanilla, chocolate, mint

chocolate chip, etc. and create a more responsive supply chain for their innovative

products like Cherry Garcia, Whirled Peace, and Fossil Fuel. This would save time and

money for the company, if not already being enforced.

The supply chain of Ben and Jerry’s is one that will follow the company’s

product, economic, and social missions while giving back to the communities that

support them. The use of eco-friendly processes and materials is very important to Ben

and Jerry’s. The use of Greyston Bakery as a supplier ensures hiring from the local

community for Greyston. Ben and Jerry’s also believes in using Fair Trade to ensure

workers of their suppliers do not work poor conditions or have lower wages. All of these

reasons leads one to believe that the concept of social responsibility concept is very

important in all of the processes used at Ben and Jerry’s.

InputsRaw materials: dairy products such as milk and cream; eggs, extracts such as coffee and vanilla, brownies, cocoa powder, nuts and fruit.

Process A Creation of ProductProcess B Control and Disposal of WasteProcess C Packaging and shipping

OutputIce creams distribution to supermarkets, grocery stores, convenience stores, scoop shops, restaurants and miscellaneous venues

5) Quality Metrics

Ben & Jerry’s purchasing practices include suppliers with Environmental

commitments, such as carbon dioxide balancing from Superior Nut; with social vision,

such as job training and community support from Greyston Bakery, and third party

certifications, such as Fair Trade. In 2006, Ben & Jerry’s embarked on a project to

devise new metrics to measure the impact of many of their Social Mission projects,

including Values-Led Sourcing initiatives. They also continue to seek a balance between

their mission-driven desire to support forward-thinking suppliers and their need to keep

costs down in the supply chain. A NAIC, which manages Ben & Jerry’s supply chain,

keeps a sharp eye on costs, while Ben & Jerry’s continues to seek Values-Led suppliers

who will create real social benefits and keep aligned with their three-part mission

(benjerry.com).

In 2006, for example, NAIC supply chain expressed concerns about the supply, quality,

and cost of the unbleached Eco-Pint container that was being used to package the ice

cream pints. The Ben & Jerry’s team responded by presenting several options for

alternative packaging that could answer these concerns, while still maintaining their

dedication to environmentally responsible packaging. Together, and with input from Ben

& Jerry’s board, a solution was crafted that was a combination of values and good

business sense (benjerry.com).

Outside of Ben and Jerry’s Values-Led Sourcing initiatives, all of their ice cream

suppliers are expected to follow practices consistent with the Code of Business Principles

of their parent company, Unilever. This code includes: continuous improvement in

managing environmental impacts, safe and healthy standards for workers, and a firm

commitment to human rights, among other things. Unilever is also a signatory to the UN

Secretary General’s Global Compact of 1999 which is committed to support and respect

human rights within the sphere of the company’s influence (benjerry.com).

Product Replacement

In 2006, Ben & Jerry’s made the decision to transition all of the eggs used in their U.S.

ice cream production to Certified Humane Cage-Free suppliers over a four-year period,

which began in 2007 (benjerry.com).

They made plans in 2006 to convert the vanilla extract in their smooth Vanilla ice

cream — and the cocoa powder in their smooth Chocolate ice cream — to Fair Trade

Certified in 2007. For the last several years, Ben & Jerry’s have purchased vanilla extract

and cocoa powder for these flavors from other Values-Led suppliers, so the change did

not significantly increase their VLS spend or affect the number of their VLS suppliers

(benjerry.com).

6) Product Life Cycle

Ben and Jerry’s is a company that is over 30 years old yet still in the growth stage of

their product life cycle. Ice cream is traditionally a functional product having a life cycle

of two years or more (Fisher, 107). It appears that Ben and Jerry’s is frequently coming

up with innovative ways to stay ahead of their competition without diminishing their

profits. However, this product innovation can cause volatile demand and unpredictability.

Since the supply chain is on the borderline between using a function and innovative

product, the life cycle of the product appears to be in the growth stage. The research and

development in their product and community involvement allows growth. Opportunities

are created for workers that may not have had a fair life beforehand. The value created

results in profits and a stable workforce consisting of a family atmosphere

(benjerry.com).

8) Triple-A Supply Chain

Agility, Adaptability, and Alignment are the three components of the Triple-A Supply

Chain. Ben & Jerry’s utilize all three components to some degree.

Agility – Methods to improve agility used by Ben & Jerry’s include:

Although the component of agility is not a main point for Ben and Jerry’s, it

remains important because the frequent innovation of flavors allows the company to be

versatile and differentiate from competitors. The concept of market mediation is also a

strategy that the supply chain uses for agility. Ben and Jerry’s believes the voice of the

customer is an important part of their agility in the ice cream industry.

Adaptability

Ben and Jerry’s has been adapting their supply chain to use more natural and humanely

produced ingredients in conjunction with better standards across all products and regions.

They’ve been using eggs supplied free-range hens for 100% of their European production

since 2004. At the end of 2008, about 30% of eggs used in their U.S. production were

sourced from cage-free farms. The company is committed to source their entire eggs

supply cage free by 2011. Additionally, in a groundbreaking move, Ben & Jerry’s has

proclaimed that all 11 ingredients (cocoa, banana, vanilla and other flavorings, fruits and

nuts) in their entire global flavor portfolio will be Fair Trade Certified™ by 2013. They

will be working with over 27,000 farmers in Fair Trade cooperatives to ensure this

commitment (“Ben & Jerry’s Goes Globally Nuts for Fair Trade”).

In response to the challenges the environment faces from business production and

practices, Ben and Jerry’s has worked on adapting their product packaging incorporating

more sustainable materials. In early 2009, they began converting to Forest Stewardship

Council (FSC) certified paperboard for all U.S. pint containers. The FSC certification

means that the paperboard comes from sources that meet Rainforest Alliance criteria for

sustainably managed forests, including the protection of wildlife habitat, maintenance of

biodiversity, avoidance of genetically modified tree species, and protection of traditional

and civil rights (benjerry.com).

Ben & Jerry’s have been adapting operations to help offset global warming

challenges in response to the challenge of climate change. Such as developing detailed

carbon emissions reduction plan, which includes adapting plants to run more efficiently

and the purchase of Gold Standard carbon offsets, in order to meet requirements for a

‘Climate Neutral’ claim for their entire European business. In the United States, they

continued work on a carbon inventory of their operations to identify the best areas for

reducing climate impacts by adapting new practices. (benjerry.com)

In Europe, Ben & Jerry’s created the Ben & Jerry’s Climate Change College, a

program that sponsors activists from each of eight European countries to create,

implement and achieve greenhouse gas reductions in their respective countries. These

Climate Change Ambassadors were encouraged by receiving business plan mentoring, a

trip to the Arctic for research and financial support for plan development. From this

Ambassadors were able to promote green choices for home improvement projects and

assist restaurants reduce their water usage and recycle cooking oil.(benjerry.com)

In the United States, Ben & Jerry’s and Greenpeace have partnered to create the

“Cleaner, Greener, Freezers” program to launch environmentally friendly hydrocarbon

(HC) freezers. Fifty HC freezers are being used in a pilot test to help gain EPA approval

for widespread commercial use in the U.S. as it is one of the few developed countries that

has not yet adapted to this technology. If and when approved by the EPA it is expected

that HC freezers will become widely adopted in the United States, as they are more

efficient than the current use of hydrofluorocarbon (HFC) freezers and do not have the

negative climate impacts of HFC gases (benjerry.com)

Alignment

An example of how Ben & Jerry’s is committed to aligning their suppliers with their

mission is demonstrated by the following: in 2001: $119,120,000 was spent on ingredient

and supply purchases. Approximately 51.87% of those purchases were from companies

that Ben & Jerry’s viewed as being aligned with their mission and values. This was an

increase from 41.19% in 2000 (benjerry.com). A list of these suppliers follows:

Greyston Bakery

As mentioned above, this supplier of brownies is based in Yonkers, New York,

and owned by an operating foundation that represents a unique business model.

Greyston has been a supplier of brownies to Ben & Jerry’s since 1988. 

LaTrinidad Cooperative

This Fair Trade coffee co-op sourced coffee extract from Coffee Enterprises and

coffee beans from the Oaxaca State in Mexico. In previous years, Aztec Harvest

Cooperative was the source for the beans used in Ben & Jerry’s coffee extract. 

Cia Agricola La Gavilana

In conjunction with their vanilla supplier, the Virginia Dare Company, this

company supplied a blended vanilla extract that contained vanilla beans from the

Savegre River region of Costa Rica. In addition, they have leveraged their

relationship with Ben & Jerry’s to secure additional funds to support community

development projects, including a regional health center, acquisition of supplies

for schools and infrastructure improvements.

Gralo Borja

Sensient Flavors, Inc., a supplier of banana puree, purchased the puree from the

Borja family business in Ecuador. According to Sensient, Mr Borja continues to

work on transitioning to organic methods and to educate Ecuadorian farmers

about sustainable farming methods. 

Sweetheart

This manufacturer of pint containers sourced their paper supply from Riverwood

International Corporation. Riverwood’s manufacturing process for this paper is

free of chlorine bleach instead they used a titanium dioxide whitened clay

coating on their paperboard (benjerry.com).

Works Cited

"Baking In The Glory." Ben & Jerry's UK. Unilever UK Limited. 2010. 10 April 2010.

<http://www.benjerry.co.uk/ourbrownies>

benjerry.com. Ben & Jerry’s Homemade, Inc. 2010. Web. 2 April 2010.

<http://www.benjerry.com>

“Ben & Jerry’s.” Wikipedia, The Free Encyclopedia. Wikimedia Foundation, Inc. 21

April 2010. Web. 24 April 2010. <http://en.wikipedia.org/wiki/Ben_%26_Jerry%27s>

“Ben & Jerry’s Goes Globally Nuts for Fair Trade.” Ben and Jerry’s Homemade Ice

Cream. Ben & Jerry’s Homemade, Inc. 18 February 2010. Web Press Relase. 21 April

2010.<http://www.businesswire.com/portal/site/benjerry/permalink/?

ndmViewId=news_view&newsId=20100218006252&newsLang=en>

"Ben & Jerry's & Unilever to Join Forces." Ben and Jerry’s Homemade Ice Cream. Ben

& Jerry’s Homemade, Inc. 12 April 2000. Web Press Relase. 5 April 2010.

<http://www.benjerry.com/company/media-center/press/join-forces.html>

ceres.org. Ceres 2010. Web. 18 April 2010. < http://www.ceres.org>

Fischer, Marshall. “What Is the Right Supply Chain for Your Product?” Harvard

Business Review March-April 1997: 105-115. Print.

jerrygreenfield.com. Celebrity Websites. March 2005. Web. 13 April 2010.

<http://www.jerrygreenfield.com>

“Perfect Cows. Perfect Milk." Cyclone Dairy. Ben & Jerry’s Homemade, Inc. 2009. Web.

2 April 2010. <http://www.cyclonedairy.com>