Marlow Foods, owners of Quorn, report a £63m loss due to reduced demand for vegan products.
- Sales fell by 6.9% to £205m in 2023, the lowest since 2017, leading to job cuts.
- Supermarket sales were particularly affected, decreasing by 8.6% to £170.7m.
- CEO Marco Bertacca cites inflation and interest rates as critical challenges.
- Despite challenges, Quorn continues to lead in the plant-based sector with innovative products.
Marlow Foods, the company behind popular plant-based brands Quorn and Cauldron, has experienced significant financial challenges over the past year. In 2023, the organisation faced a substantial loss of £63 million, attributed primarily to a noticeable decline in consumer demand for vegan products. This downturn in demand has prompted Marlow Foods to lower its sales expectations, resulting in a 6.9% decrease in sales to £205 million, marking the company’s lowest revenue since 2017.
The reduction in sales has had tangible repercussions on Marlow Foods’ operational structure, compelling the company to implement internal restructuring measures. Unfortunately, this restructuring has necessitated the elimination of nearly 100 positions within the company, reflecting the severity of the financial pressures faced by Marlow Foods. The company’s sales performance was notably impacted within the supermarket sector, with retail sales declining by 8.6% to £170.7 million.
Marco Bertacca, Chief Executive of Marlow Foods, described 2023 as a ‘challenging year’ due to prevailing economic conditions marked by rising inflation and interest rates. These economic factors have significantly increased production costs, thereby exerting pressure on both the company’s operations and consumer affordability. Bertacca acknowledged that, although efforts have been made to control costs, maintaining accessibility for consumers without imposing prohibitive price increases remains a formidable challenge.
Despite the adverse economic landscape, Quorn has managed to uphold its position as a leader in the plant-based sector. The brand’s commitment to innovation is evident in its introduction of new products, including a snacking range and Cheesy Nacho Nuggs. These innovations highlight Quorn’s proactive approach to navigating industry challenges whilst catering to evolving consumer preferences.
The recent financial performance of Marlow Foods is indicative of broader trends within the plant-based sector, which has seen fluctuations in demand affecting a variety of companies. Notably, brands such as Meatless Farm and Heather Mills’ VBites have faced administration, while other companies, like Beyond Meat, continue efforts to mitigate declining sales.
The financial hurdles faced by Marlow Foods reflect the broader challenges in the plant-based industry, yet the company’s focus on innovation remains steadfast.
