Marlow Foods, parent company of Quorn, has reported a £63 million loss amid declining demand for plant-based products.
The sales at Marlow Foods fell by 6.9 per cent to hit £205m, which led to almost 100 jobs being shed as part of a restructuring programme. According to Marlow Foods’ latest accounts, Quorn’s sales across retailers fell by 8.6 per cent in the 12 months to December 2023.
It comes amid a broader slump in the popularity of veganism across the UK, as costly plant-based products fall increasingly out of favour among hard-up shoppers. Dwindling demand was compounded by the impact of high inflation last year, as the company was hit by the cost of energy and ingredients.
Marco Bertacca, the company’s chief executive, said: “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.
"In this difficult context, the key markets in which we operate were down.
“Continued inflationary pressure on our input costs in 2023 did have a significant impact. We have taken continuous actions to control our costs, but as we always seek to minimise price increases and protect affordability for our consumers, those dynamics resulted in making a loss.”
Launched in 1985, Quorn has emerged as one of the best-known plant-based brands in Britain. Its products use mycoprotein, which is made by fermenting a natural fungus.
Challenges across the plant-based industry have led to some brands, such as Meatless Farm and Heather Mills’ VBites, collapsing into administration. Others, including Heck, significantly scaled back its vegan offering owing to reduced demand.
The news comes couple of months after it was reported that Quorn Foods’ mycoprotein ingredient will soon be available blended with meat across a host of foodservice operators and within the NHS as Quorn’s key ingredient will be blended with meat to make staple products such as burgers and sausages – replacing the 100 per cent meat versions on menus.
The project, which includes some of Quorn’s key partners in healthcare and foodservice, is expected to lead to blended products on menus before the end of the year.
