The head of the Rügenwalder Mühle is expanding the production of meat alternatives and is looking for new locations.
(Photo: Rügenwalder Mühle)
Dusseldorf Vegan sausages and vegetarian schnitzels from the Rügenwalder Mühle are selling so well that the German market leader for meat alternatives is again expanding its capacities. In Goldenstedt, near the most important production site in Bad Zwischenahn, Lower Saxony, a plant of 8,000 square meters including employees was taken over in May. Two production lines for meat substitutes are scheduled to go into operation before the end of this year.
The traditional sausage manufacturer from 1834, which has also been producing meat-free alternatives for a good seven years, had been overwhelmed by the booming demand for veggies in previous years. The family business could hardly keep up with production and had to rent external capacities. “Last year we started with a new location in Wilhelmshaven,” explained company boss Michael Hähnel when the annual figures for 2021 were presented on Monday. Other locations are being sought.
Total sales increased by 12.7 percent to 263 million euros. Hähnel did not comment on the profit. The former head of Germany from Bahlsen switched from the supervisory board to the top of the company in 2020. “Of course, we are also feeling the increased costs in terms of profitability, but the bottom line is that we are very satisfied with 2021.” Last year’s result was seven million euros, according to the Federal Gazette.
In 2021, too, Rügenwalder Mühle was able to significantly increase sales of sausage and meat alternatives by almost 42 percent. In the previous year, this increase had even been 73 percent, as calculated by market researcher IRI for the food retail trade. Lower Saxony’s veggie sales grew faster than the overall market, which grew by around a third.
Top jobs of the day
Find the best jobs now and
be notified by email.
Rügenwalder Mühle remains the undisputed German market leader for meat alternatives: According to market researcher Nielsen IQ, the share of sales in food retail in 2021 was 41.2 percent. The Rügenwalder Mühle was recently awarded the number one brand in the “Best Brands 2022” category in the food category.
According to Nielsen IQ, the German market for meat alternatives grew by almost a third to 611 million euros in 2021. Private labels follow in second place, followed by Like Meat, Nestlé (“Garden Gourmet”) and Friesland Campina (“Valess”). Because more and more manufacturers – including the meat group Tönnies – are entering the future market, Rügenwalder’s market share has fallen slightly over the years. “The fight for shelf space is getting tougher,” says Anja Grunefeld, Germany boss of Like Meat mother Livekindly.
The year 2021 marks a historic milestone for the Rügenwalder Mühle. For the first time, the seventh-generation family business sold more vegan and vegetarian products than classic sausages over the year as a whole. The trend reversal began in the summer of 2020. Sales of meat products in Lower Saxony fell by 1.9 percent in 2021. It still developed better than the German sausage market, which shrank by 3.9 percent.
Sunflower seeds are scarce – prices are rising
Every German ate an average of 31 kilos of pork in 2021 – almost nine kilos less than in 2011. This was determined by the Federal Office for Agriculture and Food. “It is an expression of a modern lifestyle to eat plant-based, healthy and climate-friendly food,” explains Fabio Ziemßen from the Association of Alternative Protein Sources Balpro, the move away from meat. However, meat alternatives are still a niche market.
However, supply bottlenecks and rising costs for raw materials and energy are also affecting the Rügenwalder mill. “2022 will be a challenging year,” Hähnel told Handelsblatt. Important ingredients such as wheat, rapeseed oil, sunflower seeds and soy have become extremely expensive.
>> Read here: The market for meat alternatives is growing rapidly
“The availability, quality and origin of the vegetable raw materials were already a challenge before the Ukraine crisis.” The crisis affects all market participants in the entire meat and veggie value chain. The task now is to convince consumers despite rising prices.
Hähnel advocates a reduced VAT rate for veggie meat of seven instead of 19 percent. “We see no reason why vegetable proteins should be disadvantaged compared to meat products.”
Despite rising costs, the manufacturer wants to significantly increase its investments again in 2021. The cultivation of soya in Germany is being promoted. “Rügenwalder Mühle has been around since 1834. The company has mastered wars and other crises – we continue to invest, even during the crisis,” emphasizes Hähnel.
More: After meat and milk substitutes, egg alternatives are now booming.