FREE ESSAY ON BEN & JERRY'S

BEN & JERRY'S

A Field Study
Ben & Jerry's first started in 1978 on the corner of St.Paul and College streets in
Burlington, Vermont. Ben and Jerry met in 1963 while in 7th grade gym class. That was the
start of their lifelong friendship and partnership in business. Their first ice cream
stand was an old renovated gas station in downtown Burlington. Ben and Jerry started
their corporation with a $12,000 investment. The outstanding taste of their ice cream,
which comes from the fresh Vermont milk and cream, would soon turn their $12,000
investment into a multi-million dollar corporation.
Ben & Jerry's Homemade, Inc. is a Vermont (USA) corporation. "We make super premium ice
cream, frozen yogurt, and ice cream novelties in unique as well as traditional flavors;
our products are marketed through supermarkets, grocery stores, convenience stores, and
food service operations, as well as through licensed scoop shops, franchised scoop shops,
and company-owned scoop shops." Ben & Jerry's products are distributed in all 50 states,
and you'll find over 120 Ben & Jerry's franchised scoop shops in 20 states (including
Washington, D.C.). Internationally, there are franchised scoop shops in Canada and
licensed scoop shops in Israel and the Netherlands. 
One of Ben & Jerry's biggest resources is its money. In 1997 their sales reached $174
million. Making wonderful profits and revenue allows the company to give back to the
community to which it is a part of. When Ben and Jerry first started their company, they
started the concept of giving back to the community as a whole. This routine is still
regular and is planned to be for the future. In 1978, Ben and Jerry had their first free
summer movie festival, where they projected movies on the outside wall of their scoop
shop in Burlington. In 1984 they found out how they could offer stock only to residents
of Vermont, giving the people of Vermont a chance to gain something from the company, and
giving the Ben & Jerry's corporation money to build a new manufacturing plant in
Waterbury Vermont. In the following year Ben and Jerry set up the Ben & Jerry Foundation,
which would serve to fund community orientated events.
The Ben & Jerry Foundation was founded in 1985 with a donation of some stock in the Ben &
Jerry's corporation. Every year the Board of Directors for the Ben & Jerry's Homemade
Inc. provide the corporation with 7.5% of the company's profits before taxes. Most of
these funds go to the corporation but a portion of the funds goes to CAT teams. These are
employee led Community Action Teams which help small groups within Vermont by giving
grants and helping with organizations. 
All donations made by the Foundation to groups throughout the country are made with the
idea that the money will be used "...for creating social change in any number of areas".
The following is a list of needs that a program must follow in order to get funds from
the Foundation:
1. Lead to societal, institutional, and/or environmental change
2. Address the root causes of social or environmental problems
3. Lead to new ways of thinking and acting
4. Help ameliorate an unjust or destructive situation by empowering constituents
5. Facilitate leadership development and strengthen the self-empowerment efforts of those
who have been disenfranchised in our society
6. Support movement building and collective acting
Along with these restrictions the foundation does not support any of the following:
1. Emergency requests
2. Colleges or Universities
3. Scholarship programs
4. Research projects
5. Capital campaigns
6. State agencies
7. Religious programs
8. International programs
9. Social service programs 
In 1998 the 7.5% of the pre-tax profits that went to the Foundation totaled $792,600. 
Starting in 1989, Ben & Jerry's started what I like to call their environmental campaign.
It started off with the making of Rainforest Crunch ice cream, which features special
types of nuts that come from rainforest trees. Part of the sales of Rainforest Crunch
goes to the preservation of the rainforest. The next step in Ben & Jerry's environmental
campaign was in 1991 when they took their "Circus Bus" and toured around the nation. Ben
and Jerry took with them a whole array of talented street performers and a message
promoting solar energy. Solar energy panels on the roof of the bus powered all of the
electronics on the "Circus Bus". In the year of 1991, dairy product prices were getting
to the point where the farmers would not be able to make any kind of profit at all. Those
farmers that supplied milk and dairy products to Ben & Jerry's Homemade Inc., and
followed Ben & Jerry's protest against the growth hormone BGH, received a total of a half
million dollars in dairy premiums to help the family farmers out during hard times. The
half million dollars prevented the family farms from going out of business and also
continued the supply of BGH free dairy products to the company. The company continues to
do all that it can to protect the environment as well as the good of all human beings.
All of the companies waste products from the production of ice cream either goes to a
local farm where pigs feed on it, or it is sent to a huge compost pile and converted in
useable soil for many years.
Technical issues dealing with the Ben & Jerry's Homemade Inc., are hard to come by due to
the fact that the company keeps all of this information to itself. While attending one of
their tours at the main production plant, I was able to attain a little information on
the process, which the company uses to produce the ice cream. 
In the main facility there is a huge production floor where 75% of all the ice cream
produced by Ben & Jerry's is made. The first step involves taking specific amounts of
cream and milk along with some types of sugar and other ingredients depending on the type
of ice cream that is to be produced. All of these ingredients are mixed together until a
milk shake type substance is made. This substance is then pumped into huge 6,000-gallon
tanks where it is cooled for 24 hours. It is then pumped back into the production room
where any type of cookie or candy is placed into the ice cream. From then on it becomes
the basic task of having a conveyor belt where the ice cream is packaged into one-pint
containers. 
Beside the actual production of the ice cream, there are the scientific tests on the ice
cream to make sure that it is of the highest quality. Ingredients are tested to make sure
that there is the correct distribution of ingredients throughout the entire pint. 
By no means is this the complete technical report on how Ben & Jerry's makes their world
class ice cream. I believe it is the fact that they don't share this information that
they have been able to stay at the top of the ice cream field.
Ben & Jerry's Homemade Inc, is a successful business mainly due to the fact that they
have a Franchised Scoop Shop Program. To first determine where a scoop shop shall be
allowed to operate, Ben & Jerry's Homemade Inc. first looks for a specific market where a
large customer base is available. The selected market is compared to the physical and
financial specifications that the company wants to present when dealing with their
customers. If the Franchise site is not up to par with the standards that the company
holds then the franchise is not allowed to start up. "We are very particular about the
appearance and location of our scoop shops." Ben & Jerry's make the process of finding
new people to run franchises in target market area a long and hard process. They only
focus on a few new markets at a time when they are planning for the future so they want
to make sure that the correct market is selected with the right people to run the
franchise. Here is a list of qualifications that one must have to be able to obtain a Ben
& Jerry's franchise:
1. Applicant must be 18 years of age
2. Have very high standards for community involvement and customer service
3. Applicants must meet the Ben & Jerry's operator profiles
4. Have very good credit
5. Provide good character references 
6. Document minimal net worth 
Ben & Jerry's make the qualifications for obtaining a site and operator for the
franchises because they want to keep their high standard of quality. 
A Ben & Jerry's Partner Shop is another way that the Ben & Jerry's corporation is working
to advance the community. Ben & Jerry's partner shops "put a profit-making business to
work with a non-profit organization to serve the communities in which they do business."
The structure of the Partner shops is that the franchise fee is waved and most of the
businesses profits go to a not for profit organization. The individual who is running the
shop will get enough money so that he/she will be able to live, but the big focus is on
the non-profit organization. The Partner shops also act as a job training facility for
those individuals who need specific job training. Most of the jobs go to those people who
have found it hard to build the skills that are needed in the work place.
A big part of Ben & Jerry's success, is how well there management is run and operated.
Ben & Jerry's has many scoop shops, franchised scoop shops, Company-owned scoop shops,
and manufacturing facilities that need managers to organize production, operations, and
any many other duties. There are many important management positions that Ben & Jerry's
needs filled daily. Below are the names of the management positions and a little summary
of what the functions of the particular type of manager must project for the
corporation.
Retail Operations Manager- This manager makes goals and objectives for long-term
operations development. Also this manager must be able to connect with competitors in the
location, and make a successful retail operations by evaluating other companies in the
area. They must oversee the design and developments of new shop real estate property,
locations, and construction operations. 
Brand Scooping Licensing Manager- This manager works with other managers (sales and
retail operations) to produce long and short- term objectives for expanding the licensed
Scoop Station concept. They must also manage the qualifications of potential licensees
and the constant relationship with present licensees. 
International Product Manager: Asia- This manger oversees the marketing of products
throughout Asia with emphasis on the strong Japanese market. This manager works together
with present regional management, Japanese management, and other local markets to achieve
market share, sales, and profit targets. (Ben & Jerry's have been very successful with
these profit markets.) 
Merchandising Development Manager- This manager has big responsibilities with ensuring
that all products that are non-food are properly meeting guidelines for the financial,
social mission and marketing goals. These products are sold in Ben & Jerry's gift shops,
catalogs, and on the Internet. This manager must also oversee new product line
development and purchasing. 
Safety Manager- This manager is responsible for the safety of all employees while at work
in the manufacturing facilities. Also for the public while they are at the shops, and
festivals that take place on certain dates of the year. They must design, develop and
direct management systems that will identify, evaluate, measure, and control people
injury. They must ensure that safety is at high levels to accommodate within areas of
manufacturing safety, fleet safety, retail safety, and public liability at the festivals.

Plant Engineering/ Maintenance Manager- This manger is responsible for the direction and
management of the engineering and maintenance functions of the plant. They must ensure
that all machinery is working properly and that they are working efficiently and safely.
This manager must also work with the production staff to create new procedures that
improve overall production. 
Plant Manager-This management position was added to the Ben & Jerry's job list recently.
This manager will devise a manufacturing plant that will maximize production, minimize
costs and maintain quality. They must report to the Director of Manufacturing regularly
to contribute to the improvement of manufacturing policies. Also they must establish
goals that they can ensure, and measures they can meet successfully. 
Business Sales Development Manger- This person must design, recommend and implement
product brand strategies. They must also coordinate program planning with the Sales
manager and customers to ensure maximum sales volume is achieved. They must also travel
to observe other shops and make sure they are operating properly and successfully to
ensure customer satisfaction. 
Regional Sales Manager-This manager oversees Ben & Jerry's sales activities in certain
states that they are assigned to. For example a regional sales manager will be based in
Atlanta, GA, but will oversee Tennessee, Alabama, Mississippi, and Louisiana. The
responsibilities are endless because of such a wide region, but for a summary, they carry
out duties such as developing a strong relationship with distributors, buyers, district
managers and chain store personnel. They must also develop and manage promotional budgets
for the region and advise distributors and clients concerning sales and advertising
techniques. 
As you can see, there are many management positions that must be successful in order for
the whole process of the corporation to work together and be a success. Management is the
most important part of making a business work. You must have strong willed, responsible,
successful, personable, and open-minded managers that will conduct their area of
management in a positive way, and that will leave a lasting impression.
As many businesses, Ben & Jerry's has a Mission Statement that they strive to make true
everyday. The statement is as follows:
"Ben & Jerry's is dedicated to the creation & demonstration of a new corporate concept of
linked prosperity. Our mission consists of three interrelated parts:
To make, distribute and sell the finest quality all natural ice cream and related
products in a wide variety of innovative flavors made from Vermont dairy products.
To operate the Company on a sound financial basis of profitable growth, increasing value
for our shareholders, and creating career opportunities and financial rewards for our
employees.
To operate the Company in a way that actively recognizes the central role that business
plays in the structure of society by initiating innovative ways to improve the quality of
life of a broad community- local, national, and international.
Underlying the mission of Ben & Jerry's is the determination to seek new & creative ways
of addressing all three parts, while holding a deep respect for individuals inside and
outside the Company and for the communities of which they are a part." 
Something exciting that is coming to stores in the world of ice cream is new Ben &
Jerry's Eco-pints. These pints are environmentally friendly because they are unbleached
paper cartons! These cartons will be much more environmentally safe because the
"bleaching paper which chlorine is one of the largest causes of toxic water pollution in
the United States." Ben & Jerry's not only strive to make scrumptious ice cream, but also
safe ice cream. By excluding Dioxin which is the chemical know to cause cancer, the
Eco-pints are very safe.
As Jason traveled to a town extremely close to his own, Waterbury, Vermont, he was able
to experience the tour of the factory. The tour started out with an eight minute movie of
how Ben & Jerry's originated, and then you walk through the factory and see the
Production Room, and are explained about the machines. Then you are taken to the Flavor
Room for a free sample. No photography is allowed, so he was unable to bring back
photographs of the factory. The tour in total is about 30 minutes long in total.
The following chart, is the increase in sales every 2 years. The business started in 1984
and the recorded financial year that I found was 1997. The numbers are in millions of
dollars on the left-hand side of the chart.
1984: Sales exceed 4 million dollars, 120% increase
1986: Sales exceed 20 million dollars, 100% growth rate
1988: Sales exceed 47 million dollars, 49% increase
1990: Sales exceed 77 million dollars, 32% increase
1992: Sales exceed 132 million dollars, 36% increase
1994: Sales exceed 149 million dollars, 1.9 million net losses
1996: Sales exceed 167 million dollars, 8% increase
1997: Sales exceed 174 million dollars, 4% increase 
In conclusion of our Ben & Jerry's field study report, we have provided all research
information which was located at www.benjerry.com . Hopefully we have included all
necessary facts to create an overview of many aspects of Ben & Jerry's, Inc. Through
research on the Internet, and Jason traveling to Vermont, we broadened our horizons of
how a corporation is operated to be a success.