Ben & Jerry’s Ends 11-Year Deal With Dreyer’s

Dreyer’s Grand Ice Cream Inc. said it lost its exclusive distribution deal with Ben & Jerry’s Homemade Inc., which picked Diageo’s Haagen-Dazs unit as its main distributor to cut costs and improve delivery. Dreyer’s, the largest U.S. ice-cream maker, said it will continue to distribute Ben & Jerry’s products in some markets for the next year. After that, results will be hurt by the loss of business, it said. The switch ends an 11-year relationship with Oakland-based Dreyer’s, which made a failed attempt to buy Ben & Jerry’s, the No. 2 premium ice-cream maker, in February. London-based Diageo is the world’s largest producer of alcoholic beverages, including Guinness beer and Smirnoff vodka. It also owns Burger King restaurants, Pillsbury and Green Giant. Under its deal with Haagen-Dazs, Burlington, Vt.-based Ben & Jerry’s will handle the direct sales of its ice cream, while Haagen-Dazs will distribute to specified customers. The other deliveries will be handled by independent distributors, the company said. Dreyer’s said it expects to offset lost distribution profits through the expansion of its own branded products. Shares of Ben & Jerry’s fell $2 to close at $15.38 on Nasdaq. Dreyer’s fell $1.31 to close at $9.31 on the NYSE.