Ben And Jerry's Timeline

Ben & Jerry's Timeline

Ben & Jerry's Homemade, Inc. is a leading manufacturer of super premium ice cream, frozen yogurt and sorbet in unique and regular flavors. The Ice Cream Company embraces a philosophy of being real and "down to earth", being humorous and having fun, being non-traditional and alternative and, at times, being activists around progressive values. Co-founders, Ben Cohen and Jerry Greenfield, have been seen as role models for running a business that is both profitable and socially responsible and committed to using only natural ingredients in its products. With flavors like Cherry Garcia, Chubby Hubby, Chunky Monkey, Phish Food, and Rainforest Crunch its no wonder that they are known as the "Woodstock of ice cream".
· In 1977, Ben Cohen and Jerry Greenfield move to Vermont and complete a $5 correspondence course in ice cream making from Penn State University.

· In 1978 with a $12000 investment ($4000 of it borrowed), Ben and Jerry open their first Ben & Jerry's Homemade ice cream scoop shop in a renovated gas station in Burlington, Vermont.
· In 1981, Time Magazine hails Ben & Jerry's the "best ice cream in the world", and the first franchise opens in Shelburne, Vermont.

· In 1983, the first out-of-state franchises open and Ben & Jerry's pints begin to be sold through independent ice cream distributors.

· In 1984 Ben & Jerry's sets a precedent by establishing a Vermont-only public stock offering to raise money for a new manufacturing facility. Ben & Jerry's sales exceed $4 million, a 120% increase from the previous year.

· In 1985, Ben & Jerry's establishes the Ben & Jerry's Foundation, which receives 7.5% of the pretax profits. Sales exceed $9 million, an increase of 143% over 1984.

· In 1986, Ben & Jerry's posts sales results of just under $20 million, experiencing once again more than a 100% increase over the previous year.

· Ben & Jerry's introduces its Cherry Garcia ice cream flavor in 1987. Named for The Grateful Dead's lead guitarist, Jerry Garcia, it became the first ice cream named for a rock legend. Also, Ben & Jerry's sends its scoop mobile to Wall Street to serve free scoops of That's Life and Economic Crunch ice cream following the October 19 stock market
crash.

· 1987 sales earnings were just under $32 million, a 60% increase from the previous year.
· At the end of 1988 there are more than 80 Ben & Jerry's ice cream scoop shops open in 18 states and annual sales exceed $47 million, up 47%.

· In 1989, Ben and Jerry receive the Corporate Giving Award from the Council on Economic Priorities for their support of non-profit organizations nationwide. Also receive Columbia University's Award for Corporate Social Responsibility.

· In 1990, Ben & Jerry's protests a nuclear power plant with a billboard declaring, "Stop Nuclear Power. Keep our customers alive and licking" Total sales are $78 million, a 33% increase from 1989.

· In 1991, Ben & Jerry's Circus Bus, powered by solar energy, hits the road for a national tour to encourage the development of solar energy. Total sales are up 26% to $97 million.

· Ben & Jerry's opens in Russia in 1992 with profits designed to fund cross-cultural exchanges. Sales again increase 36% to $132 million over previous year.

· In 1994, Ben & Jerry's begins a national search for a new CEO by holding a "Yo! I want to be CEO" contest inviting applicants from anyone interested in the job (first prize), or in a lifetime supply of ice cream (second prize). Over 22,000 applications flood the company's
headquarters.

· Net sales total $149 million, but due to a write-down against assets related to a manufacturing facility, 1994 ends up with a net loss of just under $1.9 million.

· In 1995, Ben & Jerry's introduces scores of new ice cream flavors, launches an Internet website and net sales are back in the green at $155 million. Total net income is $6 million, compared to 1994's loss of $1.9 million.

· In 1996 Ben & Jerry's international expansion continues into the U.K., net sales are $167 million, an 8% increase over 1995 and net income totals $3.9 million.

· 1997 saw new marketing campaigns, more international expansion, more new flavors, and new low fat editions of their famous ice cream. Net sales for 1997: $174 million and net income totals of $ 3.8 million.

Explanations to Balance Sheet Items

· Cash equivalents represent highly liquid investments with maturities of three months or less at date of purchase.

· Uses of cash included increases in accounts receivable and inventories, repurchase of company stock, and additions to property, plant, and equipment, primarily for equipment upgrades at the Company's manufacturing facilities.

· The increase in the accounts receivable is due to a contractual change in the Company's distribution agreement with Dreyer's Grand Ice Cream effective January 1999, which altered the payment terms from 14 to 28 days.

· The increase in accounts payable and accrued expenses reflects additional liabilities related to both the Japanese and Israeli operations.

· The company's effective income tax rate in 1999 decreased to 35% from 36%in 1998. The decrease was a result of lower state income taxes, more tax-exempt interest income, and the overall geographic mix of earnings.

· In September 1999, the company completed its repurchase program which authorized the company to buy back shares of Class A Common Stock for general corporate purposes. Company repurchased 364,100 shares totaling $7.2 million.