UK-headquartered The Vegan Food Group (VFG) has made an acquisition in mainland Europe, snapping up Germany-based vegan manufacturer Tofutown.
Financial details were not disclosed. The deal is the first struck since UK-based VFC Foods renamed itself The Vegan Food Group in October.
VFG is home to UK brands VFC, Meatless Farm and Clive’s. In a statement, the company said Tofutown generates revenue of €60m ($64.8m), adding the deal “positions the combined entity for profitability in 2024, with a clear line of sight for scaling group revenues beyond €100m”.
Tofutown, based in Wiesbaum in western Germany, manufactures products including tofu, spreads and frozen foods from two sites. It has a factory further north in Lüneburg. The company supplies German retailers including Aldi, Lidl and Edeka.
Dave Sparrow, the CEO at VFG, said: “VFG will now be a major player in plant-based food, with a significant manufacturing scale across three sites, employing over 300 staff, and with a strong network of strategic manufacturing and supply chain partners.
“This acquisition allows VFG to fast-track our growth across the UK and the EU in chilled, frozen, and ambient products, in both branded and own-label retail, as well as foodservice.”
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By GlobalData
VFG has been developed through M&A from VFC Foods, which was set up in 2020 by Adam Lyons and Matthew Glover, the founder of the Veganuary campaign.
Last year, the then VFC acquired fellow UK plant-based business Clive’s Purely Plants. Investor Veg Capital, of which Glover is also a co-founder and managing director, acquired a majority interest in Clive’s Purely Plants in 2021.
VFC also bought the Meatless Farm brand last year after owner The Meatless Farm Co. entered administration.
The deal for the Meatless Farm brand came against the backdrop of other business failures in the plant-based meat market, which has seen sales come under pressure.
Announcing the Tofutown deal, Glover said: “Consolidation is required in the plant-based space, and with early signs of a rebound, the Vegan Food Group is well positioned to capitalise on market conditions and supercharge growth in the UK and Europe.”
Markus Kerres, the chief executive of Tofutown, added: “With Germany and the UK being the two biggest markets for plant-based foods, we’re well-positioned to thrive over the next decade.”
