Marlow Foods, Quorn’s parent company, experiences a significant financial setback, reporting a £63 million loss.
- Sales declined by 6.9% to £205 million, leading to nearly 100 job cuts as part of strategic restructuring.
- The drop in Quorn’s sales mirrors a broader decrease in the popularity of veganism across the UK.
- Industry challenges such as inflation and increased production costs heavily impacted the company’s performance.
- Despite the difficulties, confidence in Quorn’s unique mycoprotein technology remains strong.
Marlow Foods, the parent company of Quorn, reported a substantial financial loss of £63 million, reflecting the challenging market conditions for plant-based products. This decline was accompanied by a 6.9% drop in sales to £205 million over the last financial year, necessitating significant restructuring efforts, including the reduction of nearly 100 jobs.
The decrease in sales from retailers, which fell by 8.6% during the 12 months ending December 2023, highlights a broader decline in the popularity of veganism within the United Kingdom. This trend is not isolated to Quorn, as observed in comparable setbacks faced by other brands like Meatless Farm and VBites, which succumbed to administration.
The downturn in the plant-based sector is further evidenced by market data indicating a 9.7% fall in sales of chilled meat alternatives in the 12 months leading up to May. Marlow Foods’ overall workforce decreased from 934 to 874 as the company sought to manage costs effectively amidst a challenging economic backdrop.
Inflation and rising costs for energy and ingredients have posed substantial challenges for the company. CEO Marco Bertacca acknowledged the adverse impact of these economic pressures, 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.” Despite minimizing price increases, the company struggled to maintain affordability, contributing to its financial losses.
Amid these challenges, Bertacca expressed continued confidence in Quorn’s innovative mycoprotein technology—a fermentation-based product that serves as a protein-rich substitute for traditional meat products. “We truly believe that there’s nothing quite like mycoprotein. Fungi and fermentation can be the protein solution the planet needs,” he asserted.
Despite financial challenges, optimism remains for Quorn’s innovative approach in the plant-based protein sector.
