JBS to gain stronghold in the plant-based sector with €341M Vivera acquisition

20 Apr 2021 --- Meat giant JBS has signaled its intention to be a much bigger player in the plant-based space by agreeing to purchase Vivera, Europe’s third-largest plant-based protein producer, for an enterprise value of €341 million (US$411.5 million).

The acquisition, which requires regulatory approval, includes three manufacturing facilities and a research center in the Netherlands.

It enables the world’s biggest meat supplier and second-largest food producer to tap into booming consumer demand for sustainable animal-product substitutes.

Speaking to FoodIngredientsFirst, a JBS spokesperson explains how the company is constantly working to identify new sources of protein and products and profoundly understands how the plant-based movement “is here to stay.”

“We operate a diverse business, and it is important for us that we have high-value alternative products to meet the varied expectations of consumers,” the spokesperson says.

“Further to this, we know we must innovate to reach the global demand for food produced sustainably. As the population is expected to reach 10 billion by 2050, plant-based products will help us to meet the global protein demand.”

Alternative proteins gaining ground
JBS’s share price increased by almost 4 percent following the acquisition announcement, adding approximately US$585 million to the company’s market worth.

Vivera’s products are sold in 25 countries, including important markets such as the UK, Netherlands and Germany. (Credit: Vivera) JBS already has a strong presence in the plant-based market. Its plant-based Seara line is the market leader in Brazil. In the US, it has Planterra foods which offer products under the OZO brand. Both have been successful. OZO’s sales grew by more than 300 percent in 2020.

“Vivera’s products are sold in 25 countries, including important markets such as the UK, Netherlands and Germany. The acquisition will further expand our presence and increase the distribution capacity of products in Europe,” continues the spokesperson.

“Vivera is a much-welcomed addition to our portfolio of quality brands and increases our global plant-based portfolio given it already offers more than 100 products. We also recognized Vivera for its strong technical capabilities and experienced management team.”

Spotlight on Vivera
Vivera develops and produces a broad range of plant-based meat replacement products for major European retailers, with relevant market share in the Netherlands, the UK and Germany.

The deal will add a brand to JBS’ portfolio that is well-established in consumer preference, strengthening the company's focus on value-added products. Vivera will also give JBS a “stronghold in the plant-based sector,” with technological knowledge and capacity for innovation.

To nurture its entrepreneurial spirit, JBS plans to manage Vivera as a standalone business unit with its current leadership team to remain in place.

“Vivera’s current leadership will be maintained. They are executives with extensive experience in the sector who have already demonstrated a lot of innovation capacity. It is an exciting time for us. Vivera is experiencing a time of strong growth, around 25 to 30 percent year on year and brand recognition is growing alongside that.”

“Like JBS’ other business units, the Vivera team will have autonomy while benefiting from integration with our Global Innovation Team. We are always evaluating and encouraging our brands to reach their maximum potential in each market by sharing experiences and innovations,” the spokesperson concludes.

The deal was approved by the JBS board of directors and will be concluded after approval by antitrust authorities.

Plant-based pivot
JBS's deal with Dutch plant-based food producer Vivera is extremely significant, signaling how traditional animal protein businesses expand their reach in the plant-based space.

JBS's deal with Vivera is extremely significant, signaling how traditional animal protein businesses expand their reach in the plant-based space. (Credit: Vivera)Brazil-headquartered JBS is the world’s largest protein company and second-largest food producer, yet adapting its strategy to include plant-based operations and products is intuitive for such a behemoth as consumer interest has soared in recent years.

The space has seen start-ups like Beyond Meat and Impossible Foods tap into the plant-based trend, rolling out alt-meat products that replicate the taste and texture of beef, chicken and more.

Fast food chains like McDonald’s and KFC have also accelerated the plant-based appetite further with plenty of plant-based options on menus.

And last year, Bühler and Tyson Foods took a stake in Asia’s plant-based and cellular agriculture sectors.

Tyson Foods initially moved into the meat alternatives space in June 2019, after selling its stake in Beyond Meat and unveiling its alternative protein products and new Raised & Rooted brand to keep pace with shifting consumer preferences.

At the time, CEO Noel White, President and CEO of Tyson Foods, explained that entering the plant-based space was a complementary move. “For us, this is about ‘and’ – not ‘or,’” he said.

Plant-based growth
Innova Market Insights’ Top Ten Trend for 2021 “Plant-Forward” highlights how the space has evolved in recent years and spotlights expansion to different regions and categories in 2021.

Plant-based claims for F&B launches are experiencing strong growth globally with a CAGR of 57 percent over the 2015 to 2019 period, compared with 13 percent for vegetarian claims and 22 percent for vegan positionings.

Earlier this month, new data showed how the plant-based food market in the US grew almost twice as fast as the total retail food market, which increased 15 percent in 2020 as COVID-19 shuttered restaurants and consumers stocked up on food amid lockdowns.

Meanwhile, a recent Innova Market Insights Consumer Survey indicated that 58 percent of global consumers prefer plant-based claims when buying meat and/or dairy alternatives.

By Gaynor Selby