Unilever Drops 4.14% as CEO Sells Plant-Based Brand

On April 7, 2025, Unilever's stock experienced a significant drop of 4.14% in pre-market trading, reflecting investor concerns and market sentiment.

Unilever's recent decision to sell its plant-based meat brand, The Vegetarian Butcher, has sparked considerable attention. The company's new CEO, Fernando Fernandez, cited two main reasons for the divestment. Firstly, the brand's unique supply chain and procurement model limit its scalability within Unilever's broader food portfolio. Secondly, its distinct technology and R&D capabilities do not align well with the group's other products.

Speculation is rife about potential buyers for The Vegetarian Butcher. Dutch plant-based food company Vivera is a likely candidate, aiming to explore new plant-based ingredients. The future of the plant-based meat market, particularly in China, holds significant potential. China, being the world's largest meat producer and consumer, presents a lucrative opportunity. A recent report highlighted that 19.3% of Generation Z consumers in China are flexible vegetarians, with a growing interest in cell-cultured meat.

However, the plant-based meat market faces challenges beyond consumer awareness, including price and taste. Unilever's strategic move to divest The Vegetarian Butcher underscores the complexities and competitive dynamics within the plant-based food sector.