Unilever to Divest The Vegetarian Butcher and Vivera by 2025
Unilever has announced plans to sell its plant-based meat brands, The Vegetarian Butcher and Vivera, by the end of 2025. The decision aligns with the company’s broader strategy to focus on high-growth areas while exiting underperforming segments within its nutrition portfolio.
Shift in Strategy Amid Slowing Plant-Based Meat Growth
The plant-based meat sector has faced sluggish demand in recent years, with consumer interest softening after a period of rapid expansion. Although Unilever had high hopes for The Vegetarian Butcher—acquired in 2018—and Vivera, which joined its portfolio in 2021, these brands have struggled to gain significant market traction.
The decision comes as part of Unilever’s wider effort to streamline operations and prioritize categories with stronger performance. CEO Hein Schumacher has emphasized the importance of optimizing resources and focusing on key areas that drive profitability.
Challenges in the Plant-Based Category
Despite growing environmental concerns and a push toward sustainable diets, the plant-based meat industry has faced headwinds, including high production costs, pricing gaps compared to conventional meat, and shifting consumer preferences. Sales in the category have stagnated, particularly in Europe and North America, where initial enthusiasm has waned.
Unilever’s move mirrors similar steps by other food giants reassessing their plant-based strategies. In recent years, several companies have pulled back from alternative protein investments, responding to cooling demand and concerns over long-term market potential.
What This Means for the FMCG Industry
This divestment signals a recalibration in how major FMCG players approach plant-based innovation. While interest in sustainable food options remains, the slower-than-expected adoption of plant-based meats suggests that brands may need to refine their product offerings, pricing strategies, and consumer engagement efforts.
Unilever has not disclosed potential buyers or financial details related to the sale. However, with increasing consolidation in the alternative protein market, industry observers will be watching to see who steps in to acquire these brands and how this shift impacts the broader plant-based food landscape.