Vion Food Group has announced the “permanent” closure of its deboning facility in Hilden, Germany, following the rejection of a proposed sale by competition authorities. This decision will impact 160 employees and highlights significant shifts within the food and beverage industry.
In a statement issued on January 8th, Vion indicated that the plant’s operations are expected to cease by the end of February. The company attributed this closure to “ongoing structural changes in the market, which require consolidation.”
To address the situation, Vion plans to engage in discussions with the works council to establish a fair “balancing of interests and a social plan.” Additionally, the company is exploring “employment alternatives” within its group, where feasible.
Premium Food Group, formerly known as the Tönnies Group, had aimed to acquire the Hilden facility along with slaughterhouses located in Buchloe, Crailsheim, and Waldkraiburg. However, Germany’s competition authority blocked this acquisition in June, citing concerns it would detrimentally affect farmers and smaller rivals.
Despite Premium Food Group’s intention to challenge this decision in German courts, the firm proposed that rival meat processor Westfleisch could step in to facilitate negotiations. Westfleisch acknowledged this proposal but indicated they required further review of relevant documentation before making any public comments.
In its response to Premium Food Group’s offer, Vion confirmed that following the prohibition of the planned transaction, discussions have taken place regarding how to allow other parties to engage with Vion about their interests. “Several interested parties have already approached us, and we will carefully assess all serious proposals to determine the best long-term solution – for our business, our teams, and our partners in the region,” the statement said.
In 2023, Vion commenced a series of meat-asset closures in Germany, with intentions later to exit the market entirely. The previous year, Premium Food Group secured a deal to acquire Vion’s cattle slaughterhouse and pre-packed facility in Altenburg, alongside Ahlener Fleischhandel, a ham processing plant in Westphalia. Just recently, in May, Premium Food Group announced plans to shut down the ham production site.
This ongoing evolution within the food and drink business underscores the importance of adaptability in response to changing market landscapes. By paying close attention to food and drink consumer trends, companies within the food and beverage industry can better position themselves for future success.
