Enkco Holding is separating its meat and vegetable protein businesses and re-positioning itself as Vivera Food Group to focus purely on its plant-based products. “The future is plant-based,” the company said.
Enkco Holding has sold off its chilled and deep-frozen meat products
business, Enkco, as well as its egg products unit, Karea, for an
undisclosed sum.
The company, which is owned by private equity group Guide Buy Out
Partners, said the divestiture would allow Vivera to concentrate on
developing its high-growth plant-based product units, which include
Vivera meat substitutes, Culifrost, which produces vegetable frozen meal
components, and Dutch Tofu Company (DTC), which manufactures tofu
products.
Animal protein accounted for around 35% of group sales, while plant-based contributed the remaining 65% of company revenue.
Announcing the deal, newly-named Vivera Food Group said it has “strong ambitions” in the meat free sector.
Vivera2
Vivera has diversified its product offering through innovation
The Vivera brand provides the Dutch company with a significant market
position in various European markets and the firm is currently the
region’s third-largest alternative protein manufacturer. Vivera products
are available in more than 25,000 supermarkets in 25 European
countries.
"Vivera is growing at a high pace, significantly above the already fast
growth of the plant- based market. Our expansion is taking place
throughout Europe in the major markets (UK, Germany and France) and
other markets like Central Europe, Nordics, Benelux, Italy and Spain.
"At the same time we are making significant investments in our
operational footprint to keep up with the growth of the business,
resulting in duplication of production capacity, including expansion
into the newest technologies," Vivera CEO Willem van Weede told
FoodNavigator.
'Innovation is our backbone'
Vivera is a pioneer in plant-based meat alternatives, having
commercialised the first vegan steak in 2018. In the UK alone, the
company has sold more than one million alternative meat products via
supermarket chain Tesco.
Innovation efforts have focused on expanding Vivera's product offering
to include items like pulled veggie, shawarma kebab and the veggie
quarter pounder.
Some of the proceeds from the sale will be used to increase investment
in research and innovation, van Weede revealed. "We are expanding
innovation investments. Innovation has always been and is our backbone
to offer the market products that outperform competition in taste, bite
and sensory experience."
Keeping pace with demand
Responding to growing consumer interest in healthier, more sustainable
food, Vivera currently has a weekly output of over one million
plant-based products. However, van Weede told us that the group is
operating at near full-capacity.
"We have been operating close to full capacity. Within our production
plant we have already made significant steps in expansion with new
machinery and extra production shifts and personnel. The expansion is a
continuous process, in which we strive to grow capacity expansion
quicker than our business growth, in order to anticipate unpredictable
elements like acceleration of growth and new unforeseen customers," he
explained.
In addition to driving research and development, van Weede said proceeds
from the sale would be used to step up growth initiatives including
“large-scale investments” to develop Vivera's capacity. The divestiture
will support investment in increasing production to meet future need and
keep pace with the company's high growth rate.
“Thanks to the sale of our meat products business we believe we can accelerate Vivera’s international growth even faster.”
Focusing on plant-based
The chief executive stressed that Vivera is one of the first global meat
companies to “bid farewell” to its animal-based business and focus on
plant protein. “We are now focusing solely on plant-based foods that are
truly conquering the planet. Consumer are increasingly discovering that
plant products can taste as [good] as real meat and have many health,
environmental and animal welfare benefits.
"For ourselves, this is a great opportunity to fully focus our energy,
resources and competences of this rapidly growing market. This will
enable us to keep leadership in this important market and proudly be an
important leading player the protein conversion so important and
impactful for sustainability."
Enkco's new home
Enkco is a manufacturer of clean-label, high quality, semi-finished
convenience meat products. Its ranges includes frozen ready-to-cook
schnitzels, meat balls, hamburgers and fresh uncooked meat products.
Enkco dominates the foodservice channel and also serves selected food
retailers in the Netherlands.
Van Loon Group, the company which acquired Enkco, said that the deal
will strengthen its position in the “important” out of home market.
The company said the acquisition fits its strategy because Enkco has
“more growth prospects” in this channel, which includes caterers, health
care institutions and on-the-go consumption. “Enkco has a traditionally
strong position in this market,” Van Loon observed.
Van Loon added that, following approval from the Consumer and Market
Authority and works councils, it intends to relocate production to its
existing manufacturing facilities within a year and a half. Enkco has
approximately 100 employees who will largely transfer to Vivera.