This web app uses cookies to compile statistic information of our users visits. By continuing to browse the site you are agreeing to our use of cookies. If you wish you may change your preference or read about cookies

close

Why Ben & Jerry's's Business Model is so successful?

Get all the answers

Embed code:

x
Copy the code below and embed it in yours to show this business model canvas in your website.

Ben & Jerry's’s Company Overview


Ben & Jerry's, an iconic name in the ice cream industry, has been delighting customers with its rich, chunky, and innovative flavors since 1978. Dedicated to crafting high-quality ice creams, frozen yogurts, and non-dairy desserts, the company prides itself on its commitment to social activism, environmental sustainability, and ethical sourcing. Among its diverse product range, Ben & Jerry's offers a plethora of unique flavors, including its beloved cookie cores, traditional ice creams, sorbets, and Greek frozen yogurts. The company also extends its brand experience through its nationwide scoop shops, providing memorable in-store experiences and catering services for events, along with a variety of branded merchandise from apparel to accessories.

Ben & Jerry's operates on a mission-driven business model that emphasizes a triple bottom line of product quality, impact on society, and environmental sustainability. This approach is what sets Ben & Jerry's apart from other ice cream producers. Their ice creams are made using Fairtrade-certified ingredients and sustainably sourced dairy, reflecting their commitment to ethical practices and environmental stewardship. The company actively engages in social justice campaigns, environmental advocacy, and community-based initiatives, intertwining their product offerings with purpose-driven actions. By maintaining transparency and adhering to rigorous ethical standards, Ben & Jerry's ensures that their business practices align with their core values.

The revenue model of Ben & Jerry's is multifaceted, designed to capitalize on multiple income streams to support its growth and mission. Primarily, the company generates revenue through the sale of its pre-packaged ice creams and frozen desserts available in grocery stores, convenience stores, and online platforms. Additionally, its branded scoop shops contribute to revenue through direct sales and franchise fees. Ben & Jerry's also leverages its brand equity through the sale of branded merchandise, offering everything from apparel and accessories to home goods. Furthermore, their catering services for events add another layer of revenue generation. By diversifying its income sources while staying true to its values, Ben & Jerry's sustains a robust business model that supports both profitability and social impact.

https://www.benjerry.com/

Headquater: South Burlington, Vermont, US

Foundations date: 1978

Company Type: Subsidiary

Sector: Consumer Goods

Category: Food & Beverages

Digital Maturity: Beginner


Ben & Jerry's’s Related Competitors



Ben & Jerry's’s Business Model Canvas


Ben & Jerry's’s Key Partners
  • Ice Cream Suppliers
  • Dairy Farms
  • Packaging Suppliers
  • Wholesalers & Distributors
  • Retailers & Supermarkets
  • Fairtrade Organizations
  • Non-Governmental Organizations (NGOs)
  • Climate Advocacy Groups
  • Franchise Partners
  • Marketing & Branding Agencies
  • Equipment Maintenance & Suppliers
  • Local Communities
  • Government Agencies & Regulators
  • Transportation & Logistics Partners
  • Research & Development Institutions
Ben & Jerry's’s Key Activities
  • Ice cream production
  • New flavor development
  • Sustainable sourcing of ingredients
  • Marketing and branding campaigns
  • Distribution and supply chain management
  • Franchise management
  • Community outreach and social activism
  • Customer feedback and support
  • Collaborations and partnerships
  • Event sponsorship and promotions
Ben & Jerry's’s Key Resources
  • Strong Brand
  • Premium Ingredients Suppliers
  • Ice Cream Production Facilities
  • Skilled Workforce
  • Distribution Network
  • Advanced R&D Capabilities
  • Marketing Expertise
  • Loyal Customer Base
  • Retail Partnerships
  • Sustainability Expertise
Ben & Jerry's’s Value Propositions
  • Rich and unique flavors
  • Ethically sourced ingredients
  • Iconic brand with a strong heritage
  • Commitment to social and environmental causes
  • Fun and creative ice cream experiences
  • High-quality, premium products
  • Engaging and memorable marketing campaigns
  • Innovative flavor combinations
  • Vegan and dairy-free options
  • Strong community involvement
Ben & Jerry's’s Customer Relationships
  • Direct Customer Service
  • Social Media Engagement
  • Email Newsletter
  • Loyalty Programs
  • Community Events
  • Customer Feedback Surveys
  • Personalized Promotions
  • In-store Experience
  • Online Chat Support
  • Cause Marketing Campaigns
Ben & Jerry's’s Customer Segments
  • Ice cream enthusiasts
  • Health-conscious individuals seeking natural ingredients
  • Families
  • Young adults
  • Tourists visiting company locations
  • Environmentally conscious consumers
  • Fans of unique and innovative ice cream flavors
  • Pet owners (for their dog-friendly flavors)
  • Wholesale partners such as grocery stores and restaurants
  • Fans of ethical and socially responsible brands
Ben & Jerry's’s Channels
  • Company website
  • Physical stores
  • Supermarkets
  • Online retailers
  • Direct online sales
  • Social media platforms
  • Food delivery apps
  • Partner restaurants and cafes
  • Promotional events and festivals
  • Loyalty programs
Ben & Jerry's’s Cost Structure
  • Raw Materials
  • Salaries and Wages
  • Marketing and Advertising
  • Distribution and Logistics
  • Manufacturing and Production
  • Research and Development
  • Utilities and Maintenance
  • Packaging
  • Brand Licensing Fees
  • Facility Rent and Overheads
Ben & Jerry's’s Revenue Streams
  • Product Sales
  • Licensing
  • Franchising Fees
  • Wholesale Distribution
  • Co-branded Partnerships
  • Merchandise Sales
  • Event Revenue

Vizologi

A generative AI business strategy tool to create business plans in 1 minute

FREE 7 days trial ‐ Get started in seconds

Try it free

Ben & Jerry's’s Revenue Model


Ben & Jerry's makes money by combining different business models. Below, you will find the list of the different monetization strategies identified for this company:

  • Franchising
  • Customer loyalty
  • Ingredient branding
  • Experience selling
  • Direct selling
  • Sponsorship
  • Layer player
  • Licensing
  • Archetypes of business model design
  • Sustainability-focused
  • Culture is brand
  • Supply chain
Analytics


Market Overview
  • Patterns
  • Sectors
  • Categories
  • Companies
  • Right click on the nodes to explore

Ben & Jerry's’s Case Study


Ben & Jerry's Case Study


When it comes to names that have sculpted the ice cream industry with both tantalizing flavors and conscientious business practices, few are as iconic as Ben & Jerry's. Since its inception in 1978, this beloved brand has transformed from a small scoop shop in a renovated gas station in Burlington, Vermont, to an industry stalwart renowned for its premium-quality ice creams and unwavering commitment to social causes. In this case study, we explore what makes Ben & Jerry’s unique and unpack the elements of their business strategy that have turned them into a paragon of ethical entrepreneurship.

Embarking on a Purpose-Driven Journey


The origins of Ben & Jerry’s carry an almost mythic quality. Founders Ben Cohen and Jerry Greenfield, high school friends with a knack for experimentation, set out with a modest vision: to create the best possible ice cream in a way that respected both the consumer and society. Little did they know, this modest goal would evolve into a triple-bottom-line framework that balanced product quality, social impact, and environmental sustainability.
From the very beginning, Ben & Jerry’s intertwined their business operations with social causes. This can be seen in their early commitment to using Fairtrade-certified ingredients and their robust environmental advocacy programs. According to a report by the Fairtrade Foundation, the use of Fairtrade ingredients by companies like Ben & Jerry's has enabled thousands of farmers to earn fair wages and work under just conditions. This commitment not only ensures ingredient quality but also aligns the company with a growing consumer shift towards ethically sourced products (Fairtrade Foundation, 2022).

A Flavorful Spectrum Combined with Ethical Sourcing


Ben & Jerry’s is unquestionably a pioneer when it comes to flavor innovation. Who could forget the sensation caused by iconic creations like “Cherry Garcia” and “Chunky Monkey”? Each concoction offers not just a burst of unique flavors but a story, a tribute, or a meaningful message. This element of storytelling has created a strong emotional connection with their customers, fulfilling needs for fun, entertainment, and even reducing anxiety by providing moments of sheer indulgence.
However, the magic is not just in the flavors but also in the ingredients. Ben & Jerry’s takes pride in sourcing premium ingredients that are Fairtrade certified and sustainably produced. As of 2023, all of their cocoa, vanilla, and sugar are certified, bolstering their claim to ethical sourcing. The company sources milk from a network of family farms that follow the Caring Dairy program, ensuring humane treatment of animals and responsible farming practices (Ben & Jerry's, 2023).

Revenue Streams: A Multipronged Approach


Turning our attention to the revenue model, Ben & Jerry’s has diversified income sources that support both their profitability and mission. Primary revenue originates from the sale of pre-packaged ice creams and frozen desserts available in thousands of grocery stores, convenience stores, and online platforms across the globe. According to Statista (2023), Ben & Jerry's held a 6.8 percent share of the U.S. ice cream market in 2022, underscoring their dominance.
Their branded scoop shops serve as both direct sales channels and franchise opportunities. Beyond selling delicious scoops, these shops offer branded merchandise ranging from apparel to home goods, thereby extending their brand reach and creating additional revenue streams. The company’s commitment to experience selling further enhances these revenues; the scoop shops are not just stores but hubs of community engagement and brand immersion.
Additionally, catering services for events and collaborations with food delivery apps offer another layer of revenue generation. The Ben & Jerry’s e-commerce platform and social media channels serve as essential communication touchpoints, providing personalized promotions and facilitating direct online sales. This omni-channel approach ensures they're meeting customers precisely where they are, whether physically or digitally.

Mission-Driven Marketing and Corporate Activism


Marketing has always been at the heart of Ben & Jerry’s strategy, but not in the traditional sense. Their campaigns often serve dual purposes: product promotion and social cause advocacy. For instance, their 2015 “Save Our Swirled” campaign aimed to raise awareness about climate change, aligning seamlessly with their corporate ethos.
Citing influential voices, Michael Porter and Mark Kramer (2006) have argued in the Harvard Business Review that corporations can drive economic success by integrating social needs into their business models. Ben & Jerry’s exemplifies this shared value concept, utilizing their brand power to advocate for issues like climate change, racial justice, and fair trade. Business leaders could learn much from this alignment of mission-driven marketing with corporate activism.

Managing a Sustainable Supply Chain


Ben & Jerry’s sustainability focus reaches deep into their supply chain management. They’ve actively reduced their carbon footprint with initiatives like transitioning to more eco-friendly packaging and investing in renewable energy sources. The company’s commitment to environmental sustainability is measured and reported annually, with their most recent report indicating a 50 percent reduction in greenhouse gas emissions from their Vermont manufacturing facility compared to their 2008 baseline (Ben & Jerry's Environmental Report, 2023).
This conscientious approach extends to waste management and recycling initiatives, where their facilities strive for zero-waste certification. Additionally, Ben & Jerry’s collaboration with NGOs and climate advocacy groups highlights their proactive stance on sustainability issues.

Community Engagement and Ongoing Social Activism


Ben & Jerry's commitment to social justice is more than skin deep. From supporting local communities to engaging in national campaigns, the company continuously proves that businesses can be a force for good. Their efforts, such as advocating for marriage equality and Black Lives Matter, create a brand perception that is deeply interwoven with activism. This level of corporate responsibility attracts like-minded consumers and earns loyalty that transcends product satisfaction.
As Harvard's Rosabeth Moss Kanter notes, "Great companies have a purpose beyond profit." This insight is vividly represented by Ben & Jerry's long-standing tradition of community engagement and social activism, exemplifying the marriage of cause and commerce.

Conclusion: The Ben & Jerry’s Legacy


The Ben & Jerry’s case study offers valuable insights into how a company can marry commercial success with social responsibility. Through innovative flavors, ethical sourcing, and a robust commitment to social activism and environmental sustainability, Ben & Jerry's continues to remain a trailblazer in the ice cream industry. Their near-mythical journey from a modest venture to an icon underscores the power of aligning business practices with core values.
By studying the strategy of Ben & Jerry’s, we glean key lessons in building a brand that is both loved by consumers and respected by society. Their triple-bottom-line approach not only boosts profitability but also cements their standing as a paragon of ethical business practices.
As we look to the future, companies large and small can draw inspiration from Ben & Jerry's, proving that profitability and purpose need not be mutually exclusive but can indeed be synergistic forces for enduring success.


If you enjoyed this content, you’re in for a treat! Dive into our extensive repository of business model examples, where we’ve dissected and analyzed thousands of business strategies from top tech companies and innovative startups. Don’t miss out!

+100 Business Book Summaries

We've distilled the wisdom of influential business books for you.

Zero to One by Peter Thiel.
The Infinite Game by Simon Sinek.
Blue Ocean Strategy by W. Chan.