Ben & Jerry’s Homemade is a Vermont corporation which manufactures and markets super premium ice cream, low fat ice cream, low fat and no-fat frozen yogurt, ice cream novelties and sorbet. Our ice cream, frozen yogurt, and sorbet products are produced in pints, quarts and 2.5 gallon tubs. Ben & Jerry’s products are distributed nationwide and in selected international markets in supermarkets, grocery stores, convenience stores, scoop shops, restaurants and other venues.

Ben & Jerry’s franchises scoop shops in both the U.S. and Canada. The company also has wholly-owned operations in France, Japan and the United Kingdom, and licensees in the Benelux countries, Israel, Canada, Peru and Lebanon. In 2001, Ben & Jerry’s employed 756 people worldwide.

This 2001 CERES Report provides information and analysis primarily relating to the Company’s Vermont manufacturing, central, and distribution facilities during the years 1999 through 2001. For data from previous years, our 2000 CERES Report is available online at wwwbenjerry.com.

The key contact within Ben & Jerry’s concerning environmental issues is the Manager of Natural Resources Use, Andrea Asch (address provided at the end of this report). Additionally there are Environmental Coordinators at each manufacturing and distribution site who work under the guidance of the Manager of Natural Resources Use and the site engineers.

In 2001 Ben & Jerry’s employed 756 staff members: 430 at three manufacturing facilities and one distribution center; 204 at corporate offices in Vermont; 42 are on our national sales force; and 30 are at our company-owned scoop shops. We had 50 people in international operations in the United Kingdom, France and Japan. In addition, we employed roughly 75 temporary or seasonal staff in our company-owned scoop shops and at our Waterbury plant tour. Our workforce increased by 17 or 2.1% from 2000.

• The Waterbury plant (built in 1985) employed approximately 236 people in 2001, including seasonal employees (primarily for Factory Tours/Hospitality operations). This facility produces all pint flavors, while also specializing in flavors with variegates and swirls. This facility is also one of Vermont’s largest tourist attractions, with factory tours and retail shop operations.
• The Springfield plant (built in 1988) employed approximately 87 people in 2001, including temporary employees. This is our most flexible facility, capable of producing all of our products, which include novelties, bulk tubs, pints and quarts.
• The St. Albans plant (built in 1995) employed approximately 175 full-time and part-time personnel in 2001. This facility primarily produces high volume pint flavors as well as flavors which lend themselves to the highest line speeds. In 1999, following a 1998 Union organizing vote by 19 maintenance employees at the St. Albans plant, the International Brotherhood of Electrical Workers (IBEW) became the authorized collective bargaining unit for that group. The company and the union negotiated a contract that took effect on November 10, 1999 and expired on October 31, 2001. Subsequently, the company and the union renegotiated the union contract. Like the first contract, this one is also modeled after the Ben & Jerrys employee handbook.
• At the beginning of 2001 there were 16 employees in the IBEW union, the same as in 2000. During the year there were no grievances.
• St. Albans Cooperative Creamery - As a farmer member-owned business, this supplier represents an alternative economic model. The Co-op has supplied all of Ben & Jerry’s milk and cream since 1985. In 2001 the company paid the Co-op a premium of $600,000 to provide milk from cows that they have pledged have not been treated with rBGH, a genetically-engineered growth hormone used to increase milk production.
• We have a manufacturing plant under license in Yavne, Israel, which began operations in 1988. As with all Ben & Jerry’s plants, products are manufactured using locally sourced, rBGH-free dairy ingredients. This plant has the capability to produce ice cream in 10-liter bulks, 100 and 500 ml containers, and ice cream cones.
• Stoney Creek, Ontario, Canada is the location of a plant that began operating under our license in 1998. All dairy products used in manufacturing are rBGH-free and come from local sources, except for some special recipe items which are purchased from Ben & Jerry’s in Vermont. This facility produces ice cream in 500-ml containers. The product is distributed only in Canada. In 2001 the operation had financial problems and produced our product for only a portion of the year.

DISTRIBUTION

Ben & Jerry’s has two distribution operations in Vermont: Vermont’s Finest. in Waterbury, Vermont, owns and operatees the 10 trucks currently in use for sales and distribution purposes throughout the state. Ben & Jerry’s Distribution Center ("the DC” ) is located in Bellows Falls, Vermont. Built in 1991, the DC is the Company’s central distribution hub, receiving product from each of the Vermont plants for wholesale distribution. locally, nationally and internationally, The DC also coordinates the 7 Ben & Jerry’s 18-wheelers which shuttle products, ingredients, equipment and other supplies between the Company’s Vermont sites. In 2001, the DC had 33 full time employees. Additionally, Ben & Jerrys leases warehouse space at Pioneer Valley in Chicopee, MA, and at Vt. Commercial in Williston, VT.

The Company does not own the vehicles that distribute outside the state.

INTERNATIONAL

In 2001 our International social mission activities focused mainly on product donation and - in the UK - philanthropy. Markets in France, Benelux, Canada, and Lebanon continued to focus on strengthening the business. At the end of 2001, operations in Japan were closed due to a weak market.

United Kingdom

In 1998 we launched the PartnerBus; program with a renovated school bus (named the Flying Friesian) for scooping. We operate the Flying Friesian to benefit ChildLine (www.childline.org.uk), a national helpline for mentally and physically abused children In 2001 we raised over $15,500, compared to $22,700 in 2000, for their CHIPS program (ChildLine in Partnership with Schools). The decrease in funds raised was a result of repairs needed for the bus and the cancellation of two key events due to the recent foot and mouth disease.

KidsCause.org is a website initiative founded and funded by Ben & Jerry’s UK. Ben & Jerry’s UK is working with social service partners to help disadvantaged kids through several projects. The KidsCause website gives information regarding children’s funding activities and it also serves to heighten awareness of the needs of kids in the UK. In 2001 KidsCause gave $88,889 to nonprofit organizations. Examples of organizations who received funding include Alone in London (www.als.org.uk); Peace Child International (www.peacechild.org); National Missing Persons Helpline (www.missingpersons.org); and The Children’s Society (www.childsoc.org). To learn more about these and other grant recipients, go to www.KidsCause.org.

CENTRAL SUPPORT OFFICES

Our Central Support offices were relocated to South Burlington, VT in 1996. The following corporate-support departments:

Accounting/Finance
Business Development
Consumer Affairs
Distribution & Safety
Environment/Natural Resources
The Foundation
Human Resources
International
Materials & Logistics
Public Relations
Research & Development
Retail Operations
Administration
Art/Design
Quality Assurance
Information Services
Legal
Marketing
Sales
Social Mission
Special Events

YEARLY REVENUE

SIGNIFICANT CHANGES

The following timeline highlights some of the more significant changes in company structure, sectors and product lines over the past 3 years (the complete version of our timeline is available on our website at www.benjerry.com):

• The Company achieved its goal of converting approximately one third of its product Packaging to unbleached paperboard in 1999.
• The St. Albans manufacturing facility discontinued use of all chlorinated & phosphorus-containing cleaning products.
• Our Waterbury facility eliminated the use of disposable polystyrene coffee cups (a $5000 cost savings in itself) by purchasing reusable/washable cups - along with a dishwasher - for all site employees.
• The Springfield facility made a successful packaging switch - from a bleached corrugated board to a chlorinefree board on novelty shipper containers.

• The Company was acquired by Unilever.
• Conversion of domestic pint packaging to unbleached paperboard ECO-Pint packaging was completed.
• The 1999 CERES Report was posted on intranet and internet.

• First full year as a Unilever company.
• takes the role as Chief Social Mission Officer after affirming Ben & Jerry’s continued commitment to its three-part mission statement.
• Development of the Global Warming Campaign to be launched in 2002.