Marlow Foods, the parent company of Quorn, has reported a staggering £63m loss due to a notable decline in the demand for plant-based products. This financial year, sales fell by 6.9% to £205m, necessitating a significant organisational restructuring, including the reduction of nearly 100 jobs.
Quorn’s retail sales experienced an 8.6% decrease over the twelve months leading up to December 2023. This decline signifies a broader waning interest in veganism within the United Kingdom. Rising inflation and increasing costs for energy and ingredients have exacerbated the company’s financial strain.
Marlow Foods’ workforce shrank from 934 to 874 last year as part of efforts to manage costs in a challenging market environment. Addressing these challenges, CEO Marco Bertacca commented, “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 further mentioned that despite efforts to keep prices low, the drive to maintain affordability contributed to the company’s financial losses.
The downturn in the plant-based industry extends beyond Marlow Foods. Other brands, such as Meatless Farm and VBites, have faced similar fates, falling into administration. Market data corroborates this trend, showing a 9.7% decrease in sales of chilled meat alternatives in the twelve months leading to May.
Despite these obstacles, Bertacca maintains a positive outlook regarding Quorn’s unique mycoprotein technology. This innovative approach utilises fermented fungi to produce protein-rich alternatives. Bertacca asserted, “We truly believe that there’s nothing quite like mycoprotein. Fungi and fermentation can be the protein solution the planet needs.”
While Marlow Foods faces substantial obstacles in the current economic climate, the company continues to show resilience through technological innovation. CEO Marco Bertacca’s confidence in the potential of mycoprotein technology suggests a cautious yet optimistic path forward for Quorn.
