UK – Vegan Food Group, a prominent player in the plant-based food industry, has revealed its plans to acquire Tofutown, a leading German tofu manufacturer generating €60 million US$64.92M in revenue.
The move marks Vegan Food Group’s first acquisition since its rebranding from VFC Foods, originally founded in 2020 by Veganuary co-founder Matthew Glover and chef Adam Lyons.
The combined entity, following the acquisition, is poised for profitability in 2024, with Vegan Food Group expressing confidence in scaling group revenues beyond €100 million (US$108.17 million).
Tofutown, with over 40 years of experience, specializes in 100% natural organic tofu, spreads, and meat alternatives, primarily serving the EU market, notably in Germany.
Tofutown’s contribution to Vegan Food Group includes two manufacturing sites covering a total of 55,000 square meters, with the Lüneburg site emerging as one of Europe’s largest plant-based manufacturing facilities.
The German company supplies major retailers such as Aldi, Lidl, DM, and Edeka under the Tofutown brand.
Markus Kerres, CEO of Tofutown, sees this acquisition as an exciting opportunity to continue the vision set by Tofutown founder Bernd Drosihn.
“With Germany and the UK being key markets for plant-based foods, the combined entity is well-positioned to thrive in the rapidly growing plant-based sector over the next decade.”
Vegan Food Group’s diverse portfolio already includes well-known brands such as VFC Foods, Meatless Farm, and Clive’s Purely Plants, boasting 80 SKUs across 21,000 distribution points in the UK and EU.
The addition of Tofutown further strengthens its position in the plant-based market.
Dave Sparrow, CEO of Vegan Food Group, emphasized the significance of this acquisition, positioning VFG as a major player in plant-based food.
With three manufacturing sites, over 300 employees, and a robust network of strategic partners, Vegan Food Group aims to fast-track its growth across the UK and EU in chilled, frozen, and ambient plant-based products for both retail and foodservice.
The acquisition, subject to final approvals, is expected to be completed soon. Financial due diligence was conducted by KPMG, and legal advice was provided by Addleshaw Goddard.
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