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UK-based plant-based challenger VFC Foods—the parent company of Meatless Farm—has announced its separation from the Vegan Food Group (VFG), just two years after the group was formed.

The move marks a significant restructuring of the plant-based landscape in the UK. Once independent, VFC and Meatless Farm will operate under the standalone VFC Foods banner. Co-founder Adam Lyons, who launched the business in 2020 and exited in 2024 following the merger, is returning to the helm to oversee operations in a "hands-on leadership role."

Operational Restructuring and Redundancies

The separation comes amidst a wider reorganisation at VFG, which is shifting its strategic focus towards its manufacturing capabilities in Germany. Consequently, VFG is closing its York head office.

The restructuring has also led to the closure of Clive’s Purely Plants Bakery in Dartmouth, Devon. This decision has resulted in over 60 redundancies, a move that has drawn industry attention given the site received a £650,000 investment for new production equipment just six months ago.

Matthew Glover, co-founder of VFC and VFG, commented on the consolidation: “Decisions were made in the interest of creating a permanent, profitable operation to produce and distribute sustainable plant protein across Europe. We’re excited about the future of Meatless Farm and the work of the team in Germany to manufacture and distribute high-quality plant protein products across Europe in the decades ahead.”

Addressing the UPF Challenge

Under Lyons' renewed leadership, VFC Foods is executing a drastic strategic pivot regarding its flagship Vegan Fried Chicken (VFC) brand. The product is being temporarily withdrawn from shelves to undergo significant reformulation.

This decision is a direct response to rising consumer and health scrutiny regarding Ultra-Processed Foods (UPF). While Meatless Farm products will continue to be stocked in UK supermarkets without interruption, the VFC range is not expected to relaunch until 2027.

Adam Lyons explained the rationale: “We do not want to be part of the UPF problem; we want to be part of the solution. VFC will be repositioned and relaunched in 2027 with this ambition at its core.”

Funding and Governance

The newly independent VFC Foods entity is now funded jointly by Lyons and the Ahimsa Foundation.

Lyons outlined his immediate priorities: “My return is centred on stabilisation across operations, finance and commercial delivery. The business is now governed, funded and managed independently with clear accountability and direct leadership.”

The separation of VFC and Meatless Farm from VFG is expected to be legally completed within the next few weeks.