Vegan Food Group (VFG) has sold one of the factories picked up in its acquisition of Germany’s TofuTown earlier this year, as it focuses on expanding operations at the larger plant-based facility purchased in the same deal.
European tofu producer New Originals Company will continue to partner with VFG after buying the Wiesbaum site from the group.
VFG said the strategic move would allow it to concentrate on expanding operations at its 600,000 sq ft Lüneburg facility in Lower Saxony, which produces the bulk of its plant-based products.
The transaction includes the transfer of certain assets, brands and production capabilities related to tofu manufacturing.
VFG CEO Dave Sparrow said the Lüneburg factory was key to the group’s long-term growth plans. “While tofu remains an important product category for VFG, with product launches planned in Q1 2025, this transaction enables us to optimise our operations while ensuring continued production of high-quality tofu products through the New Originals Company’s expertise in this field,” he added.
“This move signals VFG’s commitment to scaling its broader plant-based portfolio while securing its place in the tofu market through its strategic partnership with the New Originals Company. The divestment will allow VFG to allocate more resources towards innovation and production expansion, particularly at the Lüneburg site, while leveraging the New Originals Company’s deep expertise in tofu production to continue growing this key product line.”
VFG’s acquisition of TofuTown was the VFC and Meatless Farm owner’s biggest deal to date and positioned the group to move into profitability as it scaled revenues to more than £85m.
TofuTown produces all-natural, organic tofu, plant-based spreads and meat alternatives for the likes of Aldi, Lidl and other German retailers.
New Originals Company CEO Matthias Krön said the business was a pioneer in the tofu category.
“They have been making great traditional tofu and innovative products, winning the trust of people in many countries in Europe,” he added. “The New Originals Company is proud to continue this long tradition and will continue pioneering tofu as a key part of the food transition in Europe and partner with Vegan Food Group in the UK.
“With the completion of this asset sale, Vegan Food Group will sharpen its focus on its core operations and product lines, while the New Originals Company expands its tofu production capabilities. Both companies remain committed to delivering sustainable, plant-based products to European consumers, contributing to the ongoing transition towards plant-based alternatives in their respective market segments.”
Established in February 2024, the New Originals Company aims to become a top European vegan player for tofu and vegan foods. It employs 600 staff and operates across five countries.
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