Quorn’s parent company, Marlow Foods, has reported a staggering £63 million loss, attributing this setback to waning demand for plant-based products. This development comes as a surprise to many, as the plant-based market was previously on a sharp upward trajectory.
Sales at Marlow Foods fell by 6.9% to £205 million in the last financial year, leading to a restructuring programme that saw the company shed nearly 100 jobs. Quorn’s sales across retailers plummeted by 8.6% in the 12 months leading up to December 2023, indicative of a broader decline in the popularity of veganism in the United Kingdom. The downturn is exacerbated by skyrocketing inflation and rising costs for energy and ingredients, placing additional strain on the company.
Marlow Foods’ overall workforce decreased from 934 to 874 last year as the company sought to control costs amid a challenging market environment. CEO Marco Bertacca acknowledged the difficulties, stating, “Twenty twenty-three was a challenging year where high inflation and interest rates continued to put pressure on consumers and on the cost of producing our great food.” Despite efforts to minimise price increases, the company’s attempts to maintain affordability led to significant losses.
The slump in the plant-based industry has not been isolated to Quorn. Other brands, such as Meatless Farm and VBites, have also collapsed into administration. Market data corroborates these struggles, showing that sales of chilled meat alternatives fell by 9.7% in the 12 months to May. These figures paint a bleak picture for an industry once heralded as the future of sustainable eating.
Despite the challenges, CEO Marco Bertacca remains optimistic about Quorn’s proprietary mycoprotein technology, which uses fermented fungus to create protein-rich alternatives. He stated, “We truly believe that there’s nothing quite like mycoprotein. Fungi and fermentation can be the protein solution the planet needs.” This forward-thinking approach could be pivotal as the company strategises its next steps.
The reported £63 million loss for Marlow Foods highlights significant challenges within the plant-based industry as a whole. While high inflation and rising costs have placed immense pressure on the company, the CEO’s confidence in mycoprotein technology signals promising potential for future recovery. As the market for plant-based products continues to evolve, only time will tell if these innovative solutions will indeed become the cornerstone of sustainable eating.