Vion eyes sustainability and expansion in pork and beef with Benelux focus

05 Jun 2024 --- International food producer Vion Food Group has announced a sharpened focus on production and sourcing in the Benelux region, including potential changes in its operational structure. The company is simultaneously conducting a “formal review” of its assets in Germany following the recent closure of a meat plant in the region. 

The move is expected to advance the meat and alt-meat producer’s sustainable integrated chains amid changing market dynamics and intense competition from non-EU businesses. No closures are anticipated.

Focusing on the Benelux region will allow Vion to leverage its “market leadership position” in pork and beef, propel its animal welfare and sustainability efforts and expand its global sales, highlights the company.

“Our plan is to focus on production within the Benelux region to solidify sustainable domestic and EU market positions,” says Ronald Lotgerink, CEO of Vion. 

“To achieve our ambitious goal of becoming the most sustainable meat company in Europe, we need to focus. We see a clear opportunity to improve our position by using our robust heritage with farmers and established networks.”

Streamlining operations
In the past few years, Vion has invested significantly in Groenlo, Tilburg and Boxtel sites in the Netherlands to “future-proof” the organization in the Benelux, focusing on production efficiency. 

Vion aims to become the most sustainable meat company in Europe, says Ronald Lotgerink, CEO of Vion (Image credit: Vion).Vion is now planning further investments in value-added segments in the Benelux through potential German divestments.

In January, the company revealed plans to divest the beef slaughterhouse and pre-packing facility in Altenburg, Germany, along with the ham specialist Ahlener Fleischhandel, to Tönnies Group. The move targeted improvements in performance and streamlining Vion’s operations to be more efficient and flexible, the company previously told Food Ingredients First.

Germany focus
Vion’s transformation program and divestment steps in Germany are focused on bolstering the company's future growth and resilience.

“Vion’s German assets and businesses have a strong future, benefitting from well-established regional facilities and leading brands,” highlights Vion.

At the start of 2024, the company disposed of some processing assets in Germany, which attracted inbound interest in the remaining German assets. This drove Vion to conduct a review of its strategic options.

Final decisions are still to be made and will be subject to discussions with interested parties.

The company is also targeting sustainable operations in the country, through investments in solar panels, cooling facilities and further improvements of its CO2 footprint as well as projects in animal welfare and food safety.

“These investments will provide the framework for the sustainable future development of our German assets offering an attractive operational base,” notes Vion.

In 2019, Vion adjusted its Dutch beef facility to function as a plant-based meat site.Meanwhile, Vion assured its German employees and businesses it would secure the right partners “for allowing growth and a sound future for these assets and their respective customers and suppliers.”

Shift to plant-based 
In 2019, Vion switched its beef facility in the Netherlands to plant-based operations when it observed the alt-meat sector’s growing demand among consumers. The company adjusted its Leeuwarden beef facility to become suitable for plant-based production.

Last month, Vion unveiled its vegan brand “ME-AT the alternative” in Germany, which produces vegan sausages, Leberkäse and Sauerbraten made from plant-based ingredients. The soya used in the formulation is sourced from the EU or North America, wheat comes from the EU, and potatoes and fava beans are from the Netherlands. 

Such innovations are significant at a time when surveys have shown that many German consumers are intentionally reducing their meat consumption, becoming increasingly conscious of environmental issues and preferring fair trade food.

Moreover, a ProVeg survey last year revealed that 51% of individuals in the region are currently taking active steps to reduce their meat intake, an 11% increase from the figures reported in 2021.

Meanwhile, alt-meat companies are targeting the recreation of meat alternatives that do not bleed or look exactly like meat but taste better and are equally as ‘meaty,’ without the adverse health or environmental toll of animal meat.

By Insha Naureen