Unilever has secured a buyer for The Vegetarian Butcher, continuing its aggressive divestment strategy of €1bn in food brands under the leadership of new CEO Fernando Fernandez.
The sale to JBS-owned Vivera occurs nearly four months after Unilever hired bankers Piper Sandler to assist in identifying potential buyers. This transaction follows the recent divestiture of Unox and Zwan in December, illustrating the company’s commitment to streamlining its portfolio.
Unilever initially acquired The Vegetarian Butcher from founder Jaap Korteweg in 2018, claiming significant double-digit growth and expanding its reach to over 55 markets globally, within both retail and foodservice sectors.
During a business Investor event last year, former CEO Hein Schumacher, who recently stepped down, noted that over €1bn worth of food brands would be eliminated from Unilever’s lineup to enhance profitability.
‘Unilever consolidates its portfolio’
As part of its ongoing efforts, Unilever aims to “sharpen” its portfolio for sustained growth, concentrating on “fewer, bigger brands.” The Vegetarian Butcher, featuring chilled and frozen products, necessitates “a distinct supply chain and sourcing model,” which Unilever indicated made the brand “less scalable” within its broader food category.
Moreover, Unilever expressed that the brand’s unique technological and R&D requirements hindered its growth potential. “Since the acquisition, The Vegetarian Butcher has delivered significant growth and launched many extraordinary products,” stated Heiko Schipper, Unilever Foods president.
He further emphasized that this brand had initiated numerous impactful campaigns and cultivated a dedicated consumer base, reinforcing Unilever’s commitment to food and drink sustainability and innovation. Schipper expressed confidence that The Vegetarian Butcher would thrive under its new ownership.
Similarly, Rutger Rozendall, CEO of The Vegetarian Butcher, anticipates enhanced opportunities within the Vivera portfolio.
Vivera CEO Willem van Weede remarked, “The impressive and relentless dedication of the people of The Vegetarian Butcher have brought the vision of Jaap Korteweg to life on unprecedented scale and ‘sacrificing nothing’.”
Unilever’s new CEO’s business strategy
The divestiture of The Vegetarian Butcher aligns with Unilever’s broader reorganization strategy, centering its focus on a portfolio of 30 CPG ‘power brands’.
Former CEO Schumacher emphasized a commitment to the power brands initiative, pledging €1.2bn towards new product development platforms over a three-year period.
New CEO Fernandez has reaffirmed support for Unilever’s food portfolio in a recent strategy update following his promotion. He also aims to enhance marketing efforts, particularly through social media influencers, to broaden brand exposure in the competitive food distribution landscape.
Meanwhile, Unilever made headlines earlier this week as Ben & Jerry’s alleged that its CEO David Stever was being ousted, further highlighting the dynamic atmosphere in the food and drink industry.
