Jostein Solheim, CEO of Ben & Jerry’s | It Isn’t All Ab… — Transcript

Good afternoon. It's a real pleasure to be here. What I want to try to do is take you through a little bit of the strategy and what to do with penetration, give you some context, and then hopefully, if I do that really fast, you'll have time to ask all the questions that you're actually wondering about. So I'm going to try to skip some of the examples, etc.

then hopefully if I do that really fast you'll have time to ask all the question that you're actually wondering about so I'm going to try to skip some of the examples etc now Nick I always say they connect made a enormous impact on me

Now, Nick, I always say, they connected and made an enormous impact on me because he really consciously connected me and my purpose as a leader. Leading from a set of purpose and principles is so much more powerful than what you do before. But I always also said that, you know, Nick ruined my career because, you know, I was doing fine. I was going along, jumping to these ladders, and now I stopped. What do I do now? So it's a double-edged sword. When you find your purpose, it adds another filter to everything that you do.

because you know I was doing fine I was going along jump to these ladders and now stalked what do I do now so it's a double-edged sword when you find your purpose it adds another filter to everything that you do now the one thing

Now, the one thing I'm not going to talk about is the new ice cream flavors, and I'm not going to talk about how to run an ice cream company. But one of the themes is this should never have worked. So I want to put out of your mind one thing up front: Ben & Jerry's is an extremely successful company. We're growing double-digit. We're operating in 35 countries. We are the most profitable company in our industry. We have an extraordinarily healthy cash flow. Asset utilization, waste levels in our factories are the lowest in the industry. Our operations are super tight. I'm not going to talk more about that, but you need to know that upfront so that you don't sit there and say, yeah, that's never going to work, and B, they're probably never making any money.

put out of your mind one thing up front and Ben & Jerry's is an extremely successful company we're growing a double-digit we're operating in 35 countries we are the most profitable company in our industry we have an extraordinarily healthy cash

So on that happy note, let's get in there. So I am NOT Ben, and I'm not Jerry. Gotta get that out of the way right up front.

that's a never going to work and B they're probably never making any money so on that happy note let's get in there so I am NOT then and I'm not Jerry gotta get out of the way right up front

Everybody wants to ask, what are the boys up to? Well, the boys have no role at the company. They're not even on the board of the company. They are employed by the company, and they have the most awesome job in the world because it is to be Ben and to be Jerry. So really good gig if you can get it. They're good friends. We talk a lot, but they're really, really not engaged operationally in any formula, even on policy, the note of the board.

been and to be Jerry so really good gig if you can get it they're good friends we talk a lot but they're really really not engaged operationally in any formula even on policy the note of the board so

So my job, and I came to Ben & Jerry's six and a half years ago, was not to invent the model, but it was to scale the model. Actually, my brief was to re-addict Ben & Jerry's, which is sort of interesting, and I'll take you through that journey. You know, the company was founded in 1978. In about mid-80s, late 80s, they wrote this mission statement. It's a three-part mission, and it basically puts the three parts of the mission on equal footing. So every decision we make at the company, all employees, CEO, leadership team, we will look at that and we would say, all right, is it in the interest of the product, making the absolutely best possible product in the world in the most natural way with the least environmental damage? We are product fanatics. Whatever Nick says, we don't want anything shipping out of our door that isn't outstanding because you can eat that in Jerry's and absolutely don't care about what we do for the rest. We just got to deliver a really awesome product.

of interesting and I'll take you through that journey you know the company was founded in 1978 in about mid 80s late 80s they wrote this mission statement it's a three-part mission and it basically puts the three parts of the

Economics, we got to return sustainable returns to our shareholders. Back then, that was a big fight because then they weren't that interested, but really locked in its goal of work so that it can sustain itself. And then the most unusual one, the social mission, to have a positive impact on human rights and people around the world. Big, big topic.

product in the world in the most natural way with the least environmental damage we are product fanatics whatever Nick says we don't want anything shipping out of our door that isn't outstanding because you can eat that in Jerry's and

And the model, this is a molecule-linked prosperity. Well, I'll take you through it as an early part. We'll do it quite fast so that you don't get too hooked up on it.

interested but really locked in its god of work so that it can sustain itself and then the most unusual one the social mission to have a positive impact on human rights and people around the world big big topic and the model this is

Now, in 2000, Ben and Jerry's was acquired by Unilever, and the guys worked out really quickly, you know, it says Ben and Jerry on the floor, the pack. So Ben and Jerry go out there and say, listen, this is all this wasn't going to work. So this really created a very unique structure, and this is probably the first moment when you could say this should never have liked because Unilever acquired a company but gave the governance to an independent board of directors that can stop any action of the CEO that they deem against the integrity of the brand of the company. And they have a whole bunch of other responsibilities.

know it says Ben and Jerry on the floor the pack so Ben and Jerry go out there and say listen this is all this wasn't going to work so this really created a very unique structure and this is probably the first moment when you

And again, how do you make that work? You could say you load the board up with friends and family. That's going to work. It also is a friendly board. Well, this board is nothing but independent. You know, we've got the executive director of Greenpeace North America, and he Leonard on the board. We got the CEO of Heifer International. We got badass sort of NGOs on the board, and it works. It works extremely well because we bring into the company the passion that exists out there, and we're able to tackle it in the boardroom and actually devise the policies together. We also B Corp and a bunch of other things. So that's how it works.

company and they have a whole bunch of other responsibilities and again how do you make that work you could say you load the board up with friends and family that's going to work it also is a friendly board well this board is

So Unilever owns the business, has full legal responsibility, but the independent board of directors sets the policies around the social mission and can basically judge all the execution that we're doing with integrity.

because we bring into the company the pension that exists out there and we're able to tackle it in the boardroom and actually devise the policies together we also B Corp and a bunch of other things so that's how it works so

Our model is this linked prosperity model. This is an early slide that I use with the students, but it's basically a sort of a circular economy with one little twist on it. And it's basically, you know, the biggest bill at Ben & Jerry's is our raw material purchases. So we try to make every single raw material purchase an investment in that community. The objective is, you know, those hundreds of millions that we spend, can we create prosperity in those communities through those purchases?

early slide that I use with the students but it's basically a sort of a circular economy with one little twist on it and it's basically we you know the biggest bill at Bellinger is our raw material purchases so we try to make every single

And then comes in with our ingredient suppliers. We have ingredient suppliers like Greyston Bakery, which is a very unique social enterprise. But again, we work with our suppliers to create the maximum impact in and around those communities into manufacturing. You go around the classic circle here, but then you're coming into the part where we interface with the consumer. When you're buying the ice cream, we of course do what we call marketing, and our sense of marketing, and some of this you could say is really clever, but actually it wasn't. We were there, and then the world caught up with us, and we just happened to be at the right place at the right time.

like Greyston bakery which is a very unique social enterprise but again we work with our supplier is to create the maximum impact in and around those communities into manufacturing you go around the classic circle here but then you're coming into

But our version of marketing was to create authentic experiences and connections with our fans. It was born in a scoop shop where you could hand a cone over and you could tell the story of the product. So when the world went digital, this was really perfect for us. This is how we wanted—we wanted to have a personal relationship with our families, but then we also wanted to care about what the fans care about. We wouldn't just want to say, look, buy Ben & Jerry's and we'll pay a cocoa farmer in Africa. No, we want to also engage with what was happening in New York City, in Chicago, in LA, where we were selling our products.

there and then the world caught up with us and we just happen to be at the right place at the right time but our version of marketing was to create authentic experiences and connections with our fans it was born in a scoop shop where

So that's where you go from marketing to activism, and I'll talk more about that. But through that model, we believe we can scale, and the more times we go around that, the more we can create a living wage and a dignified life for all the people in our supply chain. Are we there yet? Absolutely not. But the more times we go around, and the digital, we're able to really scale this in a way we've never been able to do it before.

wanted to care about what the fans care about we wouldn't just want to say look by Abed and Jerry's and he'll pay a cocoa farmer in Africa no we want to also to engage with what was happening in New York City in Chicago in LA where

We have two big platforms, and we'll talk a lot about storytelling, and I think a lot of work is being done on storytelling. Our philosophy is about story living. So we have the two big platforms. One is climate. We've got climate justice because people are first affected by climate change, usually the people that have the least. And then we have social and economic equity.

wage and a dignified life for all the people in our supply chain are we there yet absolutely not but the more times we go around and the digital we're able to really scale this at a way we've never been able to do it

If we're going to link it to their confidence and humility, when you dive in as a white CEO into these topics, it's a humbling journey. And every time you learn something, you learn something new. You learn something more. It's a never-ending story.

climate justice because people are first affected by climate change usually the people that have the least and then we have social and economic equity if we're going to link it to their confidence and humility when you dive in as a white CEO

Basically, the way it works is you have two big platforms. We have the local on-ramps, which are the issues that are h...

which are the issues that are happening around the world in those communities and how they then link to our platforms and that drives the activity programs in each country and then right in the middle we have to walk the talk program

so that is for big scale programs which is about creating that low carbon value tree it's about creating an equitable and value chain where people are treated fairly and are fairly paid it's about dairy because we're a dairy company so

dairy is not the most environmentally friendly ingredient in the world and has a lot of challenges so we've really got a deep dive into that and it's about the Fairtrade enterprise model so for big programs walk the talk act the way you

talk to big platforms for activism and the whole company lives in this world this isn't me a CEO out there you know and isn't been and isn't Jerry it isn't the board it's about living in this world being in this world understanding

it and being able to act on it we're not consumer driven so we don't go out there and say what do people care about and then we're gonna dress it we're actually value sled so we say what do we care about how do we address it

and you want to join us now it's all really heavy-duty stuff but our way of approaching all of this is very light-hearted and the way that what we try to do here is to connect people emotionally not rationally because

there's so much stuff out there and so bad news that you don't want to go out there and bring them more bad news what you want to try to do is emotionally engage people to make a difference so

that's why I love this quote you know if I can't dance I don't want to be part of the revolution and then and it's really important because a lot of people sort of flip between these worlds and they

want to be either a really really good company that focuses on telling all their fans and their consumers about all the great things that they're doing or they want to just be a fun company etc we believe you have to do both so there are three

things in our marketing mix so to speak for bed injuries so one is I talked about already we are ice cream people we live and breathe high quality products it's really really important everything is centered around you spend money you get

your value for money and then there are two other things one is the social mission and the other one is popular culture that's where that the party atmosphere comes in but we have our own very unique take on popular culture it's

actually the hardest parts to globalize globalizing the social mission has been easier and trying to work out you know the German sense of humor and our take on it and and this is this is a really interesting and I get more questions

typically on the popular culture thing then often on the social mission thing I don't know when Colorado legalized marijuana my team put out this tweet it became the biggest retweeted tweet up until then in our company's history and

it's just you know we are who we are we didn't support anything we just said heck we're out of stock in Colorado what happened and that lightheartedness allows us to engage a lot of people in a lot of

serious issues it's really it's really hard to be angry if you're eating ice cream I know if you ever tried to take take ice cream and try to stay angry you know we've had protesters you know some of the issues that we we are

historically supporting are polarizing and and they are polarizing and it's fine and we have the utmost respect of people that have a different point of view but many time how protesters stand to protest our initiative and we serve

them ice cream they put their sign down they eat the ice cream we talk we finish it put the ice cream a take a sign back up you know it's just hard and that's the power that we can do we can bring people

in so I'm not going to do too much but the two big areas as a service climate so last year was a big focus on the cop21 in Paris and all of our countries and all of that the place has been

really campaigned to get a binding climate agreement it's a sort of an integrated approach we launched a product we into it and put it into our retail scoop shops and we do a lot of events that is the world's fastest scoop

truck it's a Tesla it carries 1500 ice cream samples and it's also a magnet when you drive into town and open up and in the front there's a signing up for our climate initiative and then of course digital which is revolutionized

our business model so this is where this this corporate activism that comes in and it's really important you understand it's not CEO activism because if it was just me out there saying this is what I believe in it could be powerful it could be

relevant but it does not drive your company forward so when you engage your whole company and the company's stakeholders the fan base the NGOs other companies customers that's when it becomes something powerful complex to manage at times and again you're never

always going to agree but it's very different from CEO activism when a CEO gets out and says and this what I believe it we just want to make that distinction upfront and right now of course as you might have noticed there's

an election going on and and we're working at the campaign in the US I'm not talk too much about it don't worry but it's about the democracy is in your hand and democracy only works and it works for everyone and and we sort of

bring all that together with a racial lens racial equity lens and now this is all work this is something that you guys put in I never understood exactly how they do it the point is but people that know that

we're a socially responsible company versus the people who just like the ice cream or to two and a half times as loyal and that's not that strange I mean if we share common values and outlook on the world

you're probably going to be a heck of a lot more loyal but in my business oil tea is king so having this very loyal big group of people really really helps drive the business you can't go out there and do it

to achieve this just like you shouldn't we need to go out there and say what do people care about I'm going to jump on the bandwagon but the net outcome is a very loyal group of people that will a

consume the product and be stand up for the company when other people are criticizing it or you know having that normal public to date so if I summarize my sort of learning six-and-a-half years you know came there for a little bit

classic turnaround and revitalization you know first of all it really works so you know the reason my my staff is so empowered and execute so well is because they really believe in what we're doing it's bigger than just doing their job so

from a business point of view all the metric is just stunning now from an impact point of view it's harder but we do measure that as like everything I believe in in measure everything that moves so I'm for example I'm audited by two

different auditors on our social impact we have a metric and my variable pay target is based on that metric so can I increase the social impact of the company ahead of sales which turned out to be hard when you're growing at ten

twelve percent so the other part of course is walk the talk but don't be perfect people are so obsessed about the either intellectually perfect or being able to defend every single position before they take any action our philosophy is act now think later a

little bit but you know the day it's the right answer is here let's walk and then as we're walking in the right direction we'll work out more than the details we have a tax on an internal fee on carbon that we redeploy

back into creating that new carbon economy you know equity and inclusion if you think climate is a humbling experience unraveling structural racism and inequality has been enormous Lee emotionally impactful to me personally and on our teams but it's you know it's

really hard to preach about diverse teams are the most successful teams at the company but we're not gonna get engaged externally that's just for us you know so this opening up has really empowered our teams to get to the next step and

change our recruitment policies how we look at all of these things it's been an incredible journey and I'm convinced that's linked to high-performance teams and then the last part is what the big picture is everybody wants to credit

everybody wants to do their own thing we really believe in scaling across movement so create a movement be part of something bigger be humble about it play your role don't overstate your role and don't look for credit it's amazing what

you can do if you're not worrying about who's going to get the credit so on a sort of a personal leadership level for me and these were just not in a particular order but purpose led nobody wants to work for a shitty company

anymore why would you you want to work for a company that aligns with your values and and that allows to connect across the company and it allows you to attract the absolute best talent I talked about this we in the business

world we do love our metrics we do love to think it's all very fact-based you got a really fake emotional about this you really got to connect people and get them connected emotionally to the issues or you will not get them in failure you

know failure is the biggest obstacle to progress is fear of failure we have a flavor graveyard at that and people are really proud you know of the biggest flops that they'd launched and we write poetry about you know we

put it on a real gravestone and we literally have a physical place we also have an online version and has more failures in it than we could actually bury but it's really important because it basically says you know that you've

got to celebrate failure because if you're not failing you're not trying fast enough and it's culturally been a big big learning for me coming from you know an organization where failure was not treated in that way transparency is

the is the other part that was huge change for me coming from the normal corporate world to managerial you know we sell a product that's full of fat and sugar is really not good for you it really isn't so external transparency is

really important for me because at the end of the day this is something you can choose an opt-in to and we're very clear we're not hidden sugars this is not like you think you're doing something and then you're doing something else you

know this is a very conscious and very clear decision get a lot of questions around obesity unfortunately obesity and that injuries are not very highly connected because our consumers can afford organic salad and all the other wonderful things that goes with about

and diet balanced diet and hence they indulge but they also balance out their diet is more of an income barrier than a conscious dietary buyer but transparency is critical we publish out our audits with our failures very clear again share

it people can contribute so that's that's really one of the key pillars and the last one is is really around this you know a lot of companies that I visit and try to help in any way I can talk

about these great values that they have inside the company and I'm like well that's great but you got to do something with them so people can't guess that you've got great values unless you live the values and you express the values and then you

will create a magnet and again it didn't come intuitively to me when I had my first board discussions on this you know it sort of felt like politics you know because you're acting on a set of values but nobody cares about hidden values

they need to see who you are as a company as an organization and you know live those values so that's it you know is this sort of bottom-up revolution you know you can't control the digital environment you can't control social

media for brands you know 70% of what's being said about your brand or your business is being said by somebody else not you so this is truly a bottom-up revolution where both your staff and your external stakeholders will engage

with your business in one way or the other and more and more times you will find that you've got a 28 year old tweeting for your company and what he says is what your company stands for so you better make sure that he stands for

what you stand for and that he knows what he's doing it's a bottom-up revolution so from that point of view I think bringing this together you know my last thing is lead with courage I've gone into some situations in the last five years what I

really thought but even my mother said you know cars are you dying and I said what could possibly go wrong when you need from your heart and from doing the right thing even when you don't get it right it's amazing how little bad things

happen so thank you very much [Applause]