VFC steps up to rescue Meatless Farm from bankruptcy | Totally Vegan Buzz

VFC steps up to rescue Meatless Farm from bankruptcy

VFC steps up to rescue Meatless Farm from bankruptcy.
Image: Meatless Farm

VFC founder Matthew Glower said this is a ‘golden opportunity’ to merge the business.

Meat-free startup VFC has stepped up to secure Meatless Farm’s future.

The news comes just days after UK- based Meatless Farm announced that it had to let a significant portion of its workforce go after losing key investors.

The Grocer reported that Veganuary and Veg Capital founder Matthew Glower, also VFC’s co-owner, called the rescue deal a ‘golden opportunity’ for the two companies to merge.

He added that this would ensure “continued growth and sparking innovation in the plant-based food category.”

VFC CEO Dave Sparrow reiterated the sentiment in a letter to customers and suppliers. “The Meatless Farm brand boasts high consumer recognition, a dynamic range of products, robust R&D capabilities, and a mission that dovetails perfectly with that of VFC,” he said.

“We firmly believe that this development will yield considerable benefits for our valued customers, suppliers, and consumers. Please rest assured that our collective leadership and all team members are wholly committed to maintaining business as usual.”

Why did Meatless Farm collapse?

Meatless Farm was established in 2016 by Danish entrepreneur Morten Toft Bech in Leeds.

Over the years it secured around $48 million from investors, including Stray Dog Capital and SK Inc.

The company became one of the UK’s top three best-known plant-based brands and recorded 148% year-on-year net sales growth in 2020.

It went on to sell vegan sausages, mince, and burgers in 20+ markets in Europe, the US, Canada, Asia, and Latin America.

However, following a month-long cash crunch, meatless Farms hired restructuring specialists Kroll in May in an attempt to rescue the business after key investors backed out. The company needed at least £10m as it burned through remaining cash.

“I’m devastated and heartbroken over the situation,” Bech said.

“We were doing well and nobody expected this irrational outcome after six years of many ups and downs but always forward motion (until now).”

He added: “Various of our biggest investors (and new potential investors) decided not to invest further so there was little the Board or management could do despite our high growth rates, award-winning products, and strong brand.

“The market for raising capital is very tight at the moment and we could not find new capital in time.”

VFC Foods

VFC was founded by Matthew Glover and chef Adam Lyons in 2020. They came up with the name as a playful take on a famous fast-food restaurant.

Their vegan chicken has become increasingly popular and is now available at major supermarkets like Asda, Morrisons, Sainsbury’s, and Waitrose. Additionally, they recently expanded into 600 pubs across the UK.

Additionally, VFC recently received a £6 million investment from Veg Capital to boost its presence both in the UK and internationally.

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