Plant-based manufacturer The Vegan Food Group (VFG) has reported that it will acquire German tofu company Tofutown.

VFG, which was previously known as VFC Foods Ltd (VFC) before rebranding, has predicted that the acquisition will position it for profitability in 2024, hoping to scale group revenues beyond €100 million.

Established over 40 years ago by Bernd Drosihn, Tofutown is a supplier of organic tofu, spreads and meat alternatives in the EU, predominantly in Germany. It supplies retailers such as Aldi and Lidl, and with 55,000 sqm manufacturing space across two sites, Tofutown has stated that it is “one of the largest plant-based factories in Europe”.

Dave Sparrow, CEO of VFC, said: “VFG will now be a major player in plant-based food, with a significant manufacturing scale across three sites, employing over 300 staff, and with a strong network of strategic manufacturing and supply chain partners.

“This acquisition allows VFG to fast-track our growth across the UK and the EU in chilled, frozen, and ambient products, in both branded and own-label retail, as well as foodservice.”

VFG said that it was “set to become one of Europe’s largest plant-based manufacturers” with the acquisition of Tofutown, which joins recently acquired brands Meatless Farm, VFC and Clive’s.

CEO of Tofutown Markus Kerres commented: “Joining the Vegan Food Group is an exciting opportunity for Tofutown to successfully continue Bernd’s vision over the coming decades.

“With Germany and the UK being the two biggest markets for plant-based foods, we’re well-positioned to thrive over the next decade.”

VFC co-founder Matthew Glover said: “Consolidation is required in the plant-based space, and with early signs of a rebound the Vegan Food Group is well positioned to capitalise on market conditions and supercharge growth in the UK and Europe.”