Quorn’s parent company makes £63m loss as demand for plant-based products falls
Marlow Foods, the parent company of plant-based brand Quorn, has reported a loss of £63m as demand for alternative meats continues to decline.
Sales fell by 6.9% to £205m in the last financial year, prompting the company to cut around 100 jobs as part of a restructuring plan. Quorn’s sales across all retailers fell by 8.6% in the 12 months to December 2023, reflecting a wider decline in the popularity of veganism in the UK.
The inflation comes as inflation and rising costs of energy and ingredients put more burden on the company. Marlow Foods’ headcount fell from 934 to 874 last year as it tries to control costs amid a challenging market environment.
Marlow Foods CEO, Marco Bertacca, acknowledged the difficulties, saying, “The twenty-third year has been a challenging one with high inflation and interest rates continuing to put pressure on consumers and the cost of producing our bulk food.” He added that despite efforts to reduce price increases, the company’s efforts to conserve energy have led to losses.
The collapse of the plant-based industry has also affected other brands, with companies such as Meatless Farm and VBites falling into administration. Market data shows sales of chilled meat fell by 9.7% in the 12 months to May, again reflecting the industry’s struggles.
Despite the challenges, Bertacca remains confident in Quorn’s mycoprotein technology, which uses fermented fungi to create protein-rich alternatives: “We truly believe there is no such thing as mycoprotein. Fungi and fermentation could be the protein solution the planet needs.”
