Insecure future for vegan supermarket

Despite the increased focus on a vegetable diet, the vegan supermarket business model does not seem to be financially stable: Veganz, the world’s first vegan supermarket chain, is in trouble.

Cost-cutting

There was a lot confusion because of contradicting German reports: at first, Veganz apparently went into liquidation, but that seems a tad too premature. The stores will stay open and the chain categorically denied its bankruptcy on its Facebook page. However, it did it was in the middle of a huge cost-cutting operation.

At least 4 out of the 8 remaining stores will shut down, while the others will be remodeled. “The vegan supermarket model is outdated, because of a increased vegan product range elsewhere”, founder Jan Bredack concluded. Even though there is increased attention for a vegetable diet, most consumers have plenty to choose from in their “normal” supermarket. 

Despite it all, parent company Veganz GmbH would survive: Bredack wants to shift its attention to wholesale and catering. He currently provides, among others, Metro and Familia vegetable products and 34 Albert Heijn stores already carry 16 Veganz branded items since late last year.

Outdated

Veganz, founded in 2011 by German entrepreneur Jan Bredack, wanted to bring the vegan lifestyle within everyone’s reach. He became a vegan in 2009 after a burnout and found it hard to find sufficient vegan products in the supermarket. Veganz does not sell any animal-based items, backed by their motto “Wir lieben leben” (We Love Life). Their product range contains 4,500 items, including plenty of biological. The retailer aims to be accessible, because 80 % of its clientele does not want to be a vegetarian or vegan, according to Bredack. However, these are consumers that want to cut back their meat and dairy consumption, for plenty of reasons, including health or the environment.

It all started well: following its Berlin launch, the chain expanded to 9 stores, including locations in Hamburg, Munich (which closed in August 2016), Frankfurt and even outside of Germany (in Vienna and Prague). The goal was to reach 60 stores and expand to the United States, but the chain never became profitable.