It’s been a giant few weeks for UK-based vegan meat firm Meatless Farm.
Final month, having reported {that a} ‘massive investor’ had withdrawn from a dedication to take a position, the corporate employed insolvency agency Kroll. A few weeks in the past, redundancies started, with former employees posting on social media that ‘the enterprise had sadly made all of the groups redundant’.
Kroll then revealed its appointment of directors of the plant-based model, telling us it was ‘exploring all choices’ for the enterprise.
However now it seems Meatless Farm’s freefall has discovered a tender touchdown. Immediately (21 June), vegan meals firm VFC Meals introduced it’s buying the enterprise and retaining the model.
A chance to diversify
The acquisition value was not revealed. However accounts filed with Firms Home recommend Meatless Farm had not been breaking even in recent times. Based on monetary outcomes for the 12 months ended 31 December 2021, the enterprise had an working lack of £22.9m (€26.72m).
VFC (Vegan Fried Chick*n) Meals – which like Meatless Farm, additionally hails from Yorkshire, UK – is reporting Meatless Farm’s enterprise has an annual turnover of £12m.
Based in 2020 by Matthew Glover and Adam Lyons, VFC’s product line is made up of vegan rooster options based mostly on soy and wheat protein. The corporate sees the Meatless Farm acquisition as a possibility to diversify its present portfolio.
It additionally marks a ‘essential milestone’ in VFC’s development technique and its mission to supply extra vegan merchandise throughout retail and foodservice, famous the corporate. “We’re delighted to announce this strategic acquisition, while being extraordinarily conscious of the enterprise’ challenges and the affect of the folks concerned,” mentioned David Sparrow, CEO of VFC Meals.
“Meatless Farm has constructed sturdy client consciousness, which aligns with our core values, and their thrilling product portfolio enhances our current vary. By integrating each manufacturers, we will utilise quite a few synergies with valued prospects and suppliers, thus driving and increasing buyer alternative.”
Subsequent steps for the enterprise
Within the very short-term, VFC is working arduous to get Meatless Farm’s provide chain again up and operating.
“Our instant precedence is to get the much-loved merchandise again available on the market,” Glover informed FoodNavigator. “We’re working tirelessly with valued prospects and suppliers to take action as they’ve been out for inventory for a number of months now.”
As to how VFC plans to show the enterprise round, the co-founder urged leveraging synergies will likely be an vital place to begin.
“VFC Meals is effectively positioned to sustainably develop the Meatless Farm model, we now have a group deployed to soak up the MF enterprise inside our present construction. And by integrating each manufacturers, we will utilise quite a few synergies with valued prospects and suppliers, thus driving innovation and increasing buyer alternative.”
Regrettably for Meatless Farm’s former workers, the acquisition doesn’t overturn their redundancies, which Glover defined had been already in progress earlier than VFC made a suggestion.
“VFC have a group deployed to soak up the MF enterprise inside its present construction and due to this fact as we develop it would create alternatives. Nonetheless, presently, it has resulted within the unlucky state of affairs of redundancy.”
