Friday, April 12, 2024

Vegan Food Group gobbles up German tofu manufacturer

Vegan Food Group (VFG) is set to become one of Europe’s largest plant-based manufacturers with the acquisition of TOFUTOWN, creating a major European CPG company alongside leading brands Meatless Farm, VFC, and Clive’s. This positions the combined entity for profitability in 2024, with a clear line of sight for scaling group revenues beyond €100m.

Established over 40 years ago by Bernd Drosihn, TOFUTOWN is a major supplier of 100% natural, organic tofu, spreads, and meat alternatives in the EU, predominantly in their home country Germany.

The company, headquartered in Wiesbaum (North Rhine-Westphalia), supplies major retailers such as Aldi, Lidl, DM, and Edeka under the TOFUTOWN brand. With 55,000 sqm manufacturing across two sites, the Lüneburg (Lower Saxony) is one of the largest plant-based factories in Europe, with the capacity to produce a wide range of new plant-based lines.

Dave Sparrow, CEO of the Vegan Food Group, 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.”

The Vegan Food Group Ltd has developed from the initial company, VFC Foods Ltd, founded in December 2020 by chef Adam Lyons and Veganuary founder Matthew Glover. The new holding company which acquired Meatless Farm and Clive’s Purely Plants in 2023 already boasts a range of 80 SKUs in the UK and EU across 21,000 distribution points.

“Joining the Vegan Food Group is an exciting opportunity for TOFUTOWN to successfully continue Bernd’s vision over the coming decades,” said Markus Kerres, CEO of TOFUTOWN GmbH. “With Germany and the UK being the two biggest markets for plant-based foods, we’re well-positioned to thrive over the next decade.”

“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,” added Matthew Glover, co-founder of VFC, Veg Capital and Veganuary.

Vegan Food Group has entered into a share purchase agreement to acquire all shares in Tofutown.com GmbH with completion pending final institutional authorisation but expected to happen soon.

KPMG played a pivotal role in conducting the financial due diligence, while Addleshaw Goddard provided expert legal advice, ensuring a seamless and strategic execution of the deal.

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