Key takeaways:
- Unilever is selling its plant-based meat brand, The Vegetarian Butcher, to Vivera.
- The acquisition aims to focus Unilever’s portfolio on its core brands, reflecting a shift in strategic priorities under new CEO Fernando Fernandez.
- The sale, expected to complete by Q3 2025, follows a trend of divestments in the plant-based sector amid market slowdowns.
Introduction
Unilever has announced its decision to divest from The Vegetarian Butcher, selling the brand to the Netherlands-based company Vivera. This significant move highlights their ongoing strategy to streamline its portfolio by focusing on fewer, larger brands that align better with its operational model. The transaction is part of a wider restructuring effort aimed at enhancing long-term growth and scalability in a rapidly changing market.
Detailed Analysis
On March 20, 2025, Unilever confirmed a binding agreement with Vivera, a major player in the plant-based protein market owned by JBS, to acquire The Vegetarian Butcher brand. This sale signifies their intent to focus on core brands within its expansive portfolio, a strategy emphasized by the company’s president of foods, Heiko Schipper. The Vegetarian Butcher, acquired in 2018 from founder Jaap Korteweg, had seen substantial growth, reportedly achieving double-digit growth on average and establishing a presence in over 55 markets worldwide, encompassing both retail and foodservice sectors 1.
Despite its success, Unilever’s management identified challenges associated with The Vegetarian Butcher’s operational model. The chilled and frozen products produced by the brand necessitate specific supply chains and sourcing strategies, rendering them less scalable within their broader food portfolio, which includes established brands such as Knorr and Hellmann’s 2. This lack of compatibility has contributed to the decision to divest the brand, allowing Vivera to leverage its specialized focus on plant-based products to further enhance The Vegetarian Butcher’s growth trajectory.
The deal comes amid a broader trend within the consumer goods sector, where companies have been reevaluating their commitments in the plant-based market due to a slowdown in demand. Several firms, including Nestlé and Samworth Brothers, have reduced their plant-based offerings in recent years as consumer preferences shift. As Vivera CEO Willem van Weede noted, uniting forces with The Vegetarian Butcher positions Vivera to better drive the protein transition towards healthier and more sustainable options 3.
Conclusion
Unilever’s decision to sell The Vegetarian Butcher highlights a significant strategic pivot under the helm of its new CEO, Fernando Fernandez. By divesting from brands that do not align with its core offerings, Unilever aims to hone its focus on larger, more scalable brands, which may ultimately lead to improved profitability and market resilience. Retail investors should monitor how this divesture impacts Unilever’s stock performance and the evolving landscape of plant-based food products, as Vivera seeks to enhance its position in this burgeoning market.
References
1 Unilever to sell The Vegetarian Butcher to Vivera. Unilever. Retrieved March 20, 2025.
2 Unilever sells Vegetarian Butcher as part of brutal €1bn clear out. Food Navigator. Retrieved March 20, 2025.
3 Unilever to sell The Vegetarian Butcher brand to Vivera. The Grocer. Retrieved March 20, 2025.
Tags: Unilever, The Vegetarian Butcher, Vivera, plant-based, investment
