UK Plant Protein Maker The Tofoo Co Acquired by Private Equity Firm Comitis Capital

British tofu brand The Tofoo Co has been taken over by private equity firm Comitis Capital after sustained growth in a faltering meat-free market.

The Tofoo Co has been acquired by German private equity firm Comitis Capital, which has taken a majority stake in the business, while the previous Japanese investor has exited

Co-founders David Knibb and Lydia Smith will continue as investors in the business and steer its next stage of growth in the UK and international markets.

“The Tofoo Co has plans to grow further – both with existing and new customers and channels – and needed a strong and proactive partner to help that growth journey,” said Smith. “Comitis is a great fit as that partner for this next chapter of Tofoo Co’s growth journey.”

“David and Lydia have built a remarkable enterprise that is ready for the next phase of growth. The Tofoo Co represents a great addition to our portfolio, covering the thriving plant-based food market,” said Comitis Capital managing partner Nikolaus Bethlen.

The acquisition comes after The Tofoo Co had enlisted Piper Sandler to conduct an auction process for the Yorkshire-based business in April.

“We chose Comitis as our partner to enter a new era of rapid expansion,” explained Knibbs. “Their deep understanding of our business model and entrepreneurial thinking has left us convinced that they are the right choice to bring The Tofoo Co to the next level.”

The Tofoo Co rides against the tide

Smith and Knibbs established The Tofoo Co in 2016 and capitalised on the rising interest in vegan food in the UK. Its products are stocked at every major retailer in the UK, and are used by foodservice giants like Starbucks, Holiday Inn, Wagamama and Itsu.

The company soon branched out into tempeh, before rolling out seitan SKUs (in partnership with UK restaurant Temple of Seitan) and a line of burgers earlier this year.

These innovations have helped the brand continue to build momentum, driving revenue growth despite a decline in the overall meat-free sector. Last year, sales of meatless brands plunged by £38.4M, with volume down 4%. In contrast, revenue for The Tofoo Co (which also owns the Clearspot tofu brand) was up by 10% in 2023, reaching £20M, while volumes rose by 4%. Gross profit also swelled by 30%.

Despite the meat-free industry penetrating fewer UK households last year (27.5%), the tofu category expanded its presence to 8.7% of households. According to the company’s annual accounts, this was largely driven by The Tofoo Co brand, which alone saw sales grow by 14% (excluding Clearspot) – the Naked 280g SKU is the top-selling tofu product nationwide.

One factor that can be attributed to its success – as the company alludes to – is the negative press around the category’s connection to ultra-processed foods. As Brits look to eat more natural foods, businesses like The Tofoo Co – which accounts for 62% of the UK tofu market – are likely to thrive.

New products and foodservice expansion on the cards

“The Tofoo Co has firmly established itself as a leader in the plant-based meat alternatives market with a strong brand image offering high-quality products,” said Comitis Capital’s Bethlen.

The company has now overtaken Cauldron as the second-largest meat-free brand in the UK (with 10.5% of market share), behind only Quorn.

Following the acquisition, it is aiming for significant growth with new and existing customers, banking on product development and an expanded presence in foodservice (which still makes up a small share of its business).

“There will be increased demand for tofu products in the coming years, following increased awareness of both more natural, healthier and environmentally friendly diets and products,” Knibbs said in the company’s annual filing.

“We are thrilled to collaborate with visionary entrepreneurs who are eager to foster growth, and the team at The Tofoo Co perfectly embody this spirit,” said Comitis Capital investment associate Felix Jauch.

He added: “Together, we share a unified vision of propelling The Tofoo Co into a leading position in the international plant-based meat alternatives market. With our investment, expertise, and extensive network, we are committed to fueling the company’s dynamic expansion plan.”