Israeli political figures have met the announcement with anger.
American ice cream-maker Ben & Jerry's have announced they would stop selling their ice cream in the occupied Palestinian territories, saying its sale "is inconsistent with our values."
In a statement, the Unilever subsidiary said on Monday they "hear and recognize the concerns shared with us by our fans and trusted partners," without elaborating.
More than 600,000 Israeli settlers live in the occupied West Bank and East Jerusalem, where tensions often flare up between settlers and the Palestinian population.
The settlements in the occupied territories are considered illegal by the UN and the international community.
"We have a longstanding partnership with our licensee, who manufactures Ben & Jerry's ice cream in Israel and distributes it in the region," the company said, adding that its license won't be renewed when it expires at the end of 2022.
The company said its products will continue to be sold in Israel "through a different arrangement."
Israeli political figures met the announcement with ire, with Prime Minister Naftali Bennett saying in a statement that "there are lots of ice cream, but we have only one state. Ben & Jerry's decided to brand itself as an anti-Israel ice cream."
He called it "a morally wrong decision and I believe it will also turn out to be a business mistake."
Prime Minister Naftali Bennett, in response to the decision by Ben & Jerry's:— PM of Israel (@IsraeliPM) July 19, 2021
"There are many ice cream brands, but only one Jewish state.
Ben & Jerry's has decided to brand itself as the anti-Israel ice cream.
In a video, head of Israeli diplomacy Yair Lapid called the move "a disgraceful capitulation to anti-Semitism, to BDS, to all that is bad in the anti-Israeli and anti-Jewish discourse," referring to the Boycott, Divestment and Sanctions against Israel's treatment of Palestinians.
Ben & Jerry’s decision represents shameful surrender to antisemitism, to BDS and to all that is wrong with the anti-Israel and anti-Jewish discourse.— יאיר לפיד - Yair Lapid🟠 (@yairlapid) July 19, 2021
We will not be silent.
"We won't be silent," he said.
Former Israeli prime minister Benjamin Netanyahu also reacted, saying on Twitter, "Now we Israelis know which ice cream NOT to buy."
Now we Israelis know which ice cream NOT to buy 🇮🇱💪 https://t.co/j7VNpIWX0f— Benjamin Netanyahu (@netanyahu) July 19, 2021
Founded in 1978, Ben & Jerry's is known for championing progressive causes, including protecting the environment and protecting human rights.