Group behind Yorkshire vegan food firms set to become one of biggest in Europe after acquisition of German manufacturer

The group said that the latest acquisition positions it for profitability in 2024, with a “clear line of sight” for scaling group revenues beyond €100m (£86m).

Established over 40 years ago by Bernd Drosihn, TOFUTOWN is a major supplier of tofu, spreads, and meat alternatives in the EU, predominantly in its home country Germany. The firm generates annual revenues of €60m (£51m).

Markus Kerres, CEO of TOFUTOWN, said: “Joining the Vegan Food Group is an exciting opportunity for TOFUTOWN to successfully continue Bernd’s vision over the coming decades.

“With Germany and the UK being the two biggest markets for plant-based foods, we’re well-positioned to thrive over the next decade.”

The firm, which is headquartered in Wiesbaum, North Rhine-Westphalia, supplies major retailers such as Aldi, Lidl, DM, and Edeka under the TOFUTOWN brand.

The company holds 55,000 sqm manufacturing across two sites, one of which is one of the largest plant-based factories in Europe.

Dave Sparrow, CEO of 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.”

VGF said the latest deals were “just the start” of its acquisition strategy, with more merger and acquisition news on the horizon.

The group was first developed from the initial company, VFC Foods Ltd, founded in December 2020 by chef Adam Lyons and Veganuary founder Matthew Glover. The group now produces a range of 80 products in the UK and EU across 21,000 distribution points.

The new holding company acquired both Meatless Farm and Clive’s Purely Plants in 2023.

The acquisition of West Yorkshire-based Meatless Farm came after the firm fell into administration in June of last year resulting in a number of job losses. The business had previously struggled to return to profit for a number of years, making a loss of £23.5m in its 2021 financial year.

The firm was launched in Leeds in 2016 by Danish entrepreneur Morten Toft Bech. In 2021, it ranked as one of Deloitte’s 50 fastest growing UK technology companies,

The group’s acquisition of TOFUTOWN comes at a turbulent time for the vegan food market, with many food producers scaling down their vegan ranges across 2023, and multiple plant-based food producers closing down.

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

VFG has entered into a share purchase agreement to acquire all shares in TOFUTOWN, with completion pending final institutional authorisation but expected to happen soon.