Vegan Food Group (VFG), the recently rebranded holding company formerly known as VFC Foods Ltd, announces it is on track to becoming one of Europe’s largest plant-based manufacturers with the acquisition of TOFUTOWN, a German producer with revenues of €60 million.
Following the group’s revelation of its intentions to create a “vegan Unilever” at the start of this year, VFG’s fourth acquisition, following Clive’s Purely Pies, Meatless Farm, and its chick*n brand VFC, creates a major European CPG company boasting 80 SKUs in the UK and EU across 21,000 distribution points. The combined entity of the four brands is already poised to achieve profitability in 2024, with a clear line of sight for scaling group revenues beyond €100M. This is just the start of VFG’s acquisition strategy, says VFG, with further M&A news on the horizon.
Dave Sparrow, CEO of the Vegan Food Group, comments: “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.”
Fast-tracking growth in UK and EU
In an interview with vegconomist last month, co-founder of VFC, Veg Capital, and Veganuary, Matthew Glover, outlined the group’s vision and plans for continuous strategic acquisitions, explaining, “By uniting brands within the VFG structure we can create operational efficiencies by streamlining processes, and achieving economies of scale. This consolidation enables VFG’s brands to leverage combined expertise and resources, enhancing our competitive edge and market position.”
“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 food service,” explains Sparrow.
“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,” reiterates Matthew Glover on the news today.
TOFUTOWN
Founded in 1989 by Bernd Drosihn, TOFUTOWN is a large-scale supplier of 100% natural, organic tofu, spreads, and meat alternatives in the EU, supplying major retailers such as Aldi, Lidl, DM, and Edeka under the TOFUTOWN brand. With 55,000 sqm of manufacturing across two sites, the Lüneburg facility is one of the largest plant-based factories in Europe, with the capacity to produce a wide range of new plant-based lines.
“With Germany and the UK being the two biggest markets for plant-based foods, we’re well-positioned to thrive”
VFG now enters into a share purchase agreement to acquire all shares in Tofutown.com GmbH with completion pending final institutional authorisation but expected to take place imminently. 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.
“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.”
