Premium Food Group to acquire The Family Butchers

GERMANY – The Bundeskartellamt has approved plans by Tönnies International Management GmbH, part of Premium Food Group (PFG), to purchase sole control and a majority stake in IFF Ventures GmbH & Co. KG, the parent company of The Family Butchers.

According to the regulator, the deal was reviewed in detail because it brings together Germany’s largest sausage producer and the second biggest player in the market.

The assessment also took into account PFG’s dominant role in livestock slaughtering, yet the authority concluded that conditions for blocking the merger were not satisfied.

Officials explained that even after consolidation, the companies’ combined share will remain under 40 percent across most sausage categories.

Investigations further showed that German retailers have alternative suppliers to choose from, with several large supermarket chains such as Edeka, Rewe and Kaufland operating their own sausage plants.

PFG, headquartered in Rheda-Wiedenbrück, generated a worldwide turnover of about US$7.9 billion (7.3 billion euros) in 2023, with US$4.4 billion (4.1 billion euros) from the German market.

The group, still family-owned, operates slaughterhouses for pigs and cattle, processes by-products and manufactures meat items including pork, beef, poultry and sow-based products.

Through its subsidiary Zur Mühlen Gruppe, the company already holds the position of Germany’s top sausage producer.

The Family Butchers, meanwhile, reported revenues of around US$757 million (700 million euros) in 2023, making it one of the largest independent sausage producers in the country.

Formed in 2020 by merging Kemper and Reinert, the company has grown into a major competitor across several meat segments.

Market Structure and Competition

The Bundeskartellamt examined more than 20 product-specific markets, distinguishing between categories such as raw sausages, boiled sausages, cooked sausages, and both cooked and raw cured meats.

It also separated products by meat type and packaging, ranging from chilled items in self-service shelves to canned or jarred goods.

Authorities determined that these markets are largely confined to Germany since imports account for only minimal volumes in retail sales.

Although PFG will gain an advantage through its access to slaughterhouses, competitors pointed out that retailer-owned facilities often take over production quotas, creating pressure on independent manufacturers.

In poultry products, where the merged companies will have around 40 percent of the market, PFG is not involved in slaughter operations, which reduces concerns over dominance.

After weighing these factors, the Bundeskartellamt concluded that enough competitors remain and retailers still have viable supply options, allowing the acquisition to go ahead.

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