Dreyer's Grand Ice Cream (A)

The senior management team at Dreyer’s Grand Ice Cream faced a number of external difficulties in June 1998 that were some of the most challenging problems ever faced by the company. Problems included profitability issues, record-high butterfat prices, aggressive discounting by competitors, higher margin Better-For-You segment collapse, severance of Ben & Jerry’s distribution contract and management health issues. Given a mandatory and necessary financial restructuring of the company, the senior management team faced some difficult employee issues and they needed to make some very difficult decisions to overcome their difficult times.