Hilton Food Group is to sell its Dutch vegan and vegetarian business, Dalco Food, to plant-based food company Livekindly Production for £5.4m. The deal forms part of Hilton’s plans to simplify its portfolio and concentrate investment on its core meat and fresh prepared food operations, while it reviews the performance of other non-core businesses.
Key takeaways
The transaction marks a further step in Hilton Foods’ portfolio review. Key points include:
- Livekindly Production will acquire Dalco for £5.4m.
- The deal remains subject to customary approvals and local works council consultation.
- Dalco employs about 160 people at its Oosterhout site in the Netherlands.
- The business recorded an adjusted operating loss of around £2m in the first half of 2026.
A move towards core categories
Hilton Foods said the disposal would allow it to “focus investment” and pursue growth in its core meat and fresh prepared food businesses. The group is also seeking to improve performance and maximise value across its seafood operation and remaining vegan and vegetarian businesses.
Dalco is expected to be classified as an asset held for sale in Hilton’s 2026 interim results. Its first-half loss is expected to be reported as a loss from discontinued operations.
Dalco’s manufacturing operation
Based in Oosterhout, Dalco produces private-label and co-manufactured vegan and vegetarian food. Its range includes plant-based meatballs, nuggets and burgers, alongside newer product lines developed for retail and foodservice customers.
The business employs approximately 160 people. Completion of the sale is dependent on standard conditions, including consultation with the local works council, meaning the announced transaction is not yet fully unconditional.
Livekindly expands its plant-based portfolio
Livekindly Production is home to plant-based brands including Fry Family Food Co., The No Meat Company, Like and Oumph. Several of its brands are distributed through major UK supermarkets.
The acquisition gives Livekindly additional manufacturing capability in the Netherlands and strengthens its position in private-label and co-manufactured plant-based foods. It also brings Dalco’s existing product expertise and customer relationships into a group focused exclusively on meat-free eating.
Hilton faces pressure across the wider business
The sale comes as Hilton Foods manages challenging trading conditions. The group has faced higher beef and fish costs, while profits also came under pressure during 2025. In its January 2026 full-year update, Hilton estimated that pre-tax profit would be between £72m and £75m.
The company has also experienced leadership changes. Mark Clare was appointed non-executive chairman after executive chairman Mark Allen took on the chief executive role, following Steve Murrells’ departure in November 2025.
Against that backdrop, the Dalco disposal is intended to simplify Hilton’s structure, reduce exposure to underperforming activities and direct resources towards areas where management sees stronger long-term potential.
Sources
- Hilton Foods to sell vegan business for £5.4m | News, Meat Management.
- Hilton Food Group sells Dutch vegan business | News, The Grocer.
