Unilever, the multinational consumer goods giant, has put its plant-based meat brand, The Vegetarian Butcher, up for sale, only six years after acquiring it. The company has engaged the investment bank Piper Sandler to handle the auction, signaling a strategic shift in its approach to food innovation. According to industry sources, several potential buyers have already been approached, although the valuation and details of the sale remain unclear.
This decision comes as part of Unilever’s broader efforts to streamline its global portfolio, focusing on high-revenue “power brands” that dominate their respective markets. While the move is not entirely unexpected—given recent comments by Unilever’s CEO Hein Schumacher about pruning the company’s vast food business—it has raised eyebrows due to its timing and the perceived potential of the plant-based meat sector.
The Rise of The Vegetarian Butcher
The Vegetarian Butcher was founded in 2007 by Jaap Korteweg, a former livestock farmer turned vegetarian, and Dutch politician Niko Koffeman. Starting as a small butcher shop in The Hague, the company quickly made waves by offering meat alternatives that mimicked the taste and texture of traditional products. Its innovation resonated with consumers seeking more sustainable eating habits without sacrificing flavor or familiarity.
Unilever initially collaborated with the brand in 2016, producing vegetarian meatballs for its Unox soup line. The partnership evolved into a full acquisition in 2018, at the height of the plant-based eating boom. Under Unilever’s ownership, The Vegetarian Butcher expanded rapidly, distributing its products to 55 countries and over 40,000 retail outlets. Key partnerships, such as supplying plant-based patties to Burger King in Europe and Asia, further bolstered its global profile.
Insiders report that The Vegetarian Butcher has continued to post strong sales growth despite facing an increasingly competitive market. However, the broader plant-based meat sector has been grappling with challenges. In the Netherlands, for example, sales fell by 2.5% last year, with a 7.3% drop in volume. While early 2024 data suggests a modest recovery—sales volumes up by 2.4% compared to 2023—the market remains under pressure.
Unilever’s Strategy: Fewer, Bigger, Better
The decision to divest The Vegetarian Butcher aligns with Unilever’s Growth Action Plan 2030, introduced by CEO Hein Schumacher after he assumed leadership in mid-2023. The plan prioritizes focusing on fewer brands that have outsized revenue and impact. Schumacher described this approach as “doing fewer things, better and with greater impact.”
Unilever’s food business generated €9.9 billion in turnover in the first nine months of 2024, with flagship brands like Knorr and Hellmann’s accounting for 60% of the total. These brands form the backbone of Unilever’s strategy, delivering consistent performance in a challenging consumer landscape.
However, The Vegetarian Butcher stands apart from these stalwart brands. While its niche appeal has driven growth in the plant-based sector, it lacks the scale and profitability of Unilever’s power brands. Industry analysts suggest that the decision to sell reflects a pragmatic shift away from lower-margin ventures in favor of consolidating resources around high-performing segments.
Challenges in the Plant-Based Sector
The Vegetarian Butcher’s sale also comes amid turbulence in the broader plant-based market. While Europe’s six largest markets saw a 4% rise in vegan meat sales from 2022 to 2023, the industry has struggled with waning consumer enthusiasm, supply chain pressures, and a dip in investment.
The plant-based food industry has faced significant challenges in recent years, leading to retrenchments and closures across the sector. In the UK, Allplants, the country’s largest vegan ready-meal brand, entered administration in 2024 after struggling to secure a buyer amid mounting losses. Similarly, the UK-based Meatless Farm went into administration in mid-2023, laying off its entire workforce before being acquired by VFC Foods, which plans to reintroduce the brand selectively. Elsewhere in Europe, Oumph!, a Swedish plant-based brand, was sold to investment firm Paulig in 2022 after its parent company, LiveKindly Collective, faced financial strain. These setbacks, combined with similar challenges faced last year by global players such as Beyond Meat and The Very Good Food Company, underscore the turbulence in the plant-based sector, even in markets once considered key growth regions.
Unilever’s Environmental Commitments in Question
The sale also raises questions about Unilever’s commitment to sustainability. The company had previously set a goal to generate €1.5 billion in annual sales from plant-based products by 2025, part of its broader pledge to address climate change and promote sustainable living. Selling a key player like The Vegetarian Butcher could complicate that target and diminish Unilever’s perceived leadership in plant-based innovation.
That said, the move is not entirely inconsistent with recent adjustments to Unilever’s climate ambitions. The company has scaled back several key goals in recent years, reflecting a more conservative approach to balancing profitability and sustainability.
A Shifting Landscape
The Vegetarian Butcher isn’t the only brand on Unilever’s chopping block. Reports suggest that other Dutch brands, including Unox and Conimex, are also being considered for sale. Additionally, Unilever has been restructuring its ice cream division, with demergers in India and Indonesia, and is mulling a public listing for its global ice cream business, which includes Ben & Jerry’s and Magnum.
These moves indicate a broader recalibration of Unilever’s priorities as it seeks to navigate an increasingly volatile consumer goods market. For The Vegetarian Butcher, a sale could open the door to new investment and expansion opportunities under a buyer more focused on plant-based innovation.
Conclusion
Unilever’s decision to sell The Vegetarian Butcher underscores the complex dynamics of the modern food industry. While the plant-based sector remains a vital area of innovation, its challenges have made it difficult for even well-established players to thrive.
For Unilever, the sale is a calculated step in refining its portfolio and doubling down on its most profitable brands. For The Vegetarian Butcher, it marks the end of one chapter—and the beginning of another in the hands of a new owner, one that may bring renewed focus to its mission of creating a more sustainable food system.
As the plant-based meat market continues to evolve, this sale may come to symbolize a pivotal moment, not just for Unilever, but for the industry as a whole.
Unilever has made a bold move by placing The Vegetarian Butcher up for sale. Known for its plant-based meat alternatives, the brand was acquired by Unilever in 2018 as part of its strategy to tap into the growing demand for vegetarian and vegan products. However, the decision to sell signals a shift in priorities as Unilever reevaluates its portfolio to focus on core business areas. This move comes at a time when consumers are also exploring sustainable living options, not just in food but also in real estate. For instance, a stylish townhouse for sale in Ajman offers a modern lifestyle with sustainability features, aligning with the changing preferences of conscious buyers.