Ben Cohen and Jerry Greenfield, co-founders of Ben & Jerry’s ice cream, are in discussions with Pete Strohvas, an executive associated with private-equity firm KKR, about potentially separating their brand from its current parent company, Magnum Ice Cream. Magnum, a publicly traded company that owns several ice cream brands, including Ben & Jerry’s, is opposing the move, citing concerns that a split would increase costs and lead to higher consumer prices.

The proposed deal entails carving out Ben & Jerry’s as a distinct entity structured under an employee stock ownership plan (ESOP), which would allocate ownership shares to rank-and-file employees. Cohen and Strohvas emphasized that this approach aligns with the company’s longstanding social values and would offer tax benefits. Strohvas, who is engaged in the negotiations separately from his role at KKR, described the concept as a way to maintain the company’s culture and board structure while empowering employees through ownership.

At 75, Cohen expressed hope that generating public pressure might influence Magnum’s position. “All that I can do is try to generate more public pressure on Magnum to tell,” he said.

Magnum spokeswoman reaffirmed that Ben & Jerry’s is not for sale and highlighted the brand’s ongoing success within the company. She warned that separating Ben & Jerry’s would create “significant dis-synergies,” potentially reduce investment in its social mission, and drive up prices on a per-unit basis.

Magnum, based in Amsterdam with a market valuation near €11 billion ($17.5 billion), was formed last year following a spin-off of Unilever’s ice cream business. It manages several brands, including Breyers, Talenti, and Klondike. Unilever retains a roughly 20% stake in Magnum. Among these brands, Ben & Jerry’s is one of the top revenue generators, particularly in the U.S. market, which is likely a factor in Magnum’s reluctance to consider severing ties with the brand.

Industry estimates value Ben & Jerry’s itself at approximately $3 billion, a figure that could make the remaining Magnum portfolio more appealing to potential buyers if a sale eventually occurs.

Beyond its commercial operations, Ben & Jerry’s operates under an unusual corporate arrangement stemming from its 2000 acquisition by Unilever. The company retains an independent board with authority over its social missions and marketing, making its governance more complex than typical subsidiaries.

Strohvas, an advocate for employee ownership models, also leads an organization called Expanding ESOPs, which promotes legislation to increase the widespread adoption of ESOP structures in the United States. He noted bipartisan support for such efforts as a factor in considering ESOPs a viable path forward for Ben & Jerry’s.