The Tofoo Co has been acquired by a new private equity owner to push the plant-based brand to the next stage of growth and continue its mission to take tofu to the masses.
German private equity firm Comitis Capital snapped up a significant majority stake in the business, with the previous private Japanese investor exiting, The Grocer has learned.
Co-founders David Knibbs and Lydia Smith remain invested in the business and will continue to steer the company’s growth in the UK and international markets.
The deal follows a competitive auction process to sell the business, run by investment bankers at Piper Sandler, as revealed by The Grocer in April.
Tofoo is bucking the wider category decline for meat alternatives, as consumers opt for brands offering products made with more natural ingredients rather than ultra-processed options. Revenues at the business jumped 10.4% to £20.2m in 2023. And the latest retail figures showed value sales for the brand rising 19.1% year on year versus a 7.9% decline for the category [NielsenIQ 52 w/e 13 July 2024].
“The Tofoo Co has firmly established itself as a leader in the plant-based meat alternatives market with a strong brand image offering high-quality products,” said Comitis managing partner Nikolaus Bethlen.
“David and Lydia have built a remarkable enterprise that is ready for the next phase of growth. The Tofoo Co represents a great addition to our portfolio, covering the thriving plant-based food market.”
Knibbs added: “We chose Comitis as our partner to enter a new era of rapid expansion. Their deep understanding of our business model and entrepreneurial thinking has left us convinced they are the right choice to bring The Tofoo Co to the next level.
“Their value-based investment approach aligns perfectly with our vision, and we see significant opportunities for The Tofoo Co ahead.”
Smith said: “The Tofoo Co has plans to grow further – both with existing and new customers and across channels – and needed a strong and proactive partner to help that growth journey. Comitis are a great fit as that partner for this next chapter of Tofoo Co’s growth journey.”
Knibbs and Smith, a husband-and-wife team, started Tofoo Co in 2016 after buying a small artisan tofu maker in the North Yorkshire market town of Malton. Business boomed on the back of the growing appetite for meat-free options, with the brand winning listings across all the major retailers and pushing into foodservice with restaurant chains such as Wagamama.
Tofoo has since expanded into new plant-based areas, launching a tempeh range and, more recently, seitan and burgers, helping maintain growth momentum.
Knibbs said the moves had helped the business overtake Cauldron to become the second-biggest brand in meat-free, behind market leader Quorn.
The brand also holds a 62% share of the tofu category and its Naked 280g tofu variant is the bestselling SKU in the plant-based category.
“We are thrilled to collaborate with visionary entrepreneurs who are eager to foster growth, and the team at The Tofoo Co perfectly embody this spirit,” added Comitis investment associate Felix Jauch.
“Together, we share a unified vision of propelling The Tofoo Co into a leading position in the international plant-based meat alternatives market. With our investment, expertise, and extensive network, we are committed to fueling the company’s dynamic expansion plan.”
The Tofoo Co were advised on the deal by Piper Sandler (financial advisor), Food Strategy Associates (commercial), Pinsent Masons (legal) and KPMG (financial).
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