Marlow Foods, the parent company of plant-based brand Quorn, has reported a £63m loss as demand for meat alternatives continues to wane.
Sales fell by 6.9% to £205m in the last financial year, prompting the company to shed nearly 100 jobs as part of a restructuring programme. Quorn’s sales across retailers dropped 8.6% in the 12 months leading to December 2023, reflecting a broader decline in the popularity of veganism in the UK.
The downturn comes as inflation and rising costs for energy and ingredients put additional strain on the company. Marlow Foods’ overall workforce decreased from 934 to 874 last year as it sought to control costs amid a challenging market environment.
Marlow Foods’ 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.” He added that despite efforts to minimise price increases, the company’s attempts to maintain affordability led to losses.
The slump in the plant-based industry has affected other brands as well, with companies like Meatless Farm and VBites collapsing into administration. Market data shows sales of chilled meat alternatives fell by 9.7% in the 12 months to May, further reflecting the industry’s struggles.
Despite the challenges, Bertacca remains confident in Quorn’s mycoprotein technology, which uses a fermented fungus to create protein-rich alternatives: “We truly believe that there’s nothing quite like mycoprotein. Fungi and fermentation can be the protein solution the planet needs.”
Read more:
Quorn parent company suffers £63m loss as demand for plant-based products falls