Unilever has found a buyer for The Vegetarian Butcher as it continues a brutal €1bn food brand clear out under new CEO Fernando Fernandez.
The sale to JBS-owned and Netherlands-based Vivera comes nearly four months after the Hellmann’s and Knorr owner appointed bankers Piper Sandler to find a buyer. It also follows the sale of Unox and Zwan in December.
Unilever acquired the brand from founder Jaap Korteweg in 2018, claiming to have secured double-digit growth, along with expanding its presence to over 55 markets globally in retail and foodservice.
At the business’s Investor event last year, former CEO Hein Schumacher, who stepped down at the beginning of this month to make way for Fernandez, said there was over €1bn of food brands to be ditched from Unilever’s portfolio in an effort to make the business more profitable.
‘Unilever consolidates its portfolio’
Unilever continues to “sharpen” its portfolio for long-term growth and will focus on “fewer, bigger brands”. The Vegetarian Butcher consists of chilled and frozen products that require “a distinct supply chain and sourcing model”.
This, said Unilever, made the brand “less scalable” within the business’s broader food portfolio. It also blamed the brand’s need of unique set of technological and R&D capabilities as a growth stump.
“Since the acquisition, The Vegetarian Butcher has delivered significant growth and launched many extraordinary products,” said Unilever Foods president Heiko Schipper.
The brand had also launched a series of high-impact campaigns, developing an audience of loyal consumers, he continued. “These efforts have not only driven the success of the brand, but also reinforced the Unilever commitment to plant-based foods and breakthrough innovation.”
Though the brand is leaving the big foods' bosom, Schipper believed it would continue to succeed and grow under new ownership.
The sentiment was echoed by Vegetarian Butcher CEO Rutger Rozendall, who foresaw more opportunity within the Vivera portfolio.
Vivera CEO Willem van Weede, said: “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 binding offer from Unilever is subject to the usual closing conditions, regulatory requirements and consultation processes, with completion expected by the third quarter of 2025.
The Vegetarian Butcher sale comes as Unilever continues to undergo a major business shakeup to focus on its portfolio of 30 CPG ‘power brands’.
Former CEO Schumacher had focused on the power brands strategy, promising €1.2bn of NPD platforms over three years.
New CEO Fernandez has committed to Unilever’s food portfolio, he told investors recently as part of a strategy update following his promotion.
He also pledged a significant focus in marketing, particularly through the use of social media influencers, which he would use to ensure a broader brand exposure.
Meanwhile, Unilever was thrust into the spotlight earlier this week when Ben & Jerry’s claimed its CEO David Stever was being pushed out of the business.
