Unilever, a global consumer goods company, has announced its plans to sell off its plant-based brand, The Vegetarian Butcher. This decision comes as part of the company’s strategy to streamline its portfolio under the leadership of new CEO Fernando Fernandez.
The Vegetarian Butcher was acquired by Unilever in 2018 from founder Jaap Korteweg. Since then, the brand has experienced significant growth, expanding to over 55 markets worldwide. Despite its success, Unilever has decided to divest from The Vegetarian Butcher due to its unique supply chain and sourcing model, which makes it less scalable within the company’s broader food portfolio. Additionally, the brand possesses distinct technological and R&D capabilities that differ from Unilever’s other products.
In a statement, Unilever explained that selling The Vegetarian Butcher is the best option for both parties involved. By divesting from a brand that does not align with its core portfolio, Unilever can redirect resources towards higher-profile, faster-growing brands. The proceeds from the sale can also be used to pay down debt or invest in other areas of the business.
The sale of The Vegetarian Butcher is expected to be finalized in the third quarter of this year. This move comes at a time when the plant-based food space is facing challenges, particularly in the U.S. Consumer demand for plant-based products is slowing, leading manufacturers like Beyond Meat to make tough decisions such as cutting costs, scaling back on product development, and reducing their workforce.
Overall, Unilever’s decision to sell The Vegetarian Butcher reflects a strategic shift towards optimizing its portfolio and focusing on brands that align more closely with its core business objectives. As the plant-based food industry continues to evolve, companies like Unilever are adapting their strategies to remain competitive in the market.
