Earlier this month, Unilever (NYSE: UL), the parent company of beloved ice cream brand Ben & Jerry’s, found itself in hot water as shares took a nosedive following a controversial 4th of July social media post.
The post, which stated that the United States was founded on “stolen indigenous land” and called for its return to rightful owners, triggered an intense backlash. The incident has sparked a heated debate, impacting the company’s reputation and financial standing, leading to a significant downturn in its shares.
Now, the story took another interesting turn as the drama around Ben & Jerry’s claims triggered a dispute between Native American tribes, who are dueling over who should be allowed to claim land from the ice cream maker.
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The Dispute
Ben & Jerry’s land is a territory formerly owned by Abenaki tribes – Indigenous peoples of the Northeastern Woodlands of Canada and the US.
The ice cream brand’s controversial Independence Day post revived a dispute between Canadian Abenaki tribes and the Vermont-based Nulhegan Band of the Coosuk Abenaki Nation, over who is the rightful owner of the indigenous heritage.
In particular, the Canadian Abenaki tribes believe the Vermont-based tribes have no proof of native ancestry and should not be allowed to reclaim Ben & Jerry’s land.
“It’s important to remember that Odanak and Wôlinak are the only two officially recognized Abenaki communities. It is therefore essential that compensation is not distributed among self-proclaimed Abenaki groups.”
– Odanak Abenaki said after a council meeting last week.
What does this mean for Unilever stock?
The initial backlash against Ben & Jerry’s over their controversial 4th of July social media post caused a brief period of trouble for Unilever stock, resulting in a slight decline in its value.
However, since then, the company’s shares have shown resilience, managing to recover from the initial setback. As of now, Unilever’s stock has not experienced any significant declines, indicating a possible restoration of investor confidence in the company.
At the time of publication on July 19, US-listed shares of Unilever stood at $52.30, down 0.25% in the past 24 hours.
Over the past week, UL is up more than 2.2%, and is also in the green territory on a monthly chart, meaning the stock remained little affected by recent boycotts.
As can be observed from the below chart, the company’s shares took a significant dip after July 4th, before staging an impressive recovery to new monthly highs.
Despite the current recovery in Unilever’s stock, investors remain vigilant about the situation surrounding Ben & Jerry’s.
They are keenly observing the latest developments and the ongoing dispute with Native American tribes to prevent any potential prolonged negative impact akin to cases like the Bud Light (NYSE: BUD) controversy.
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