Marlow Foods, the owner of Quorn, faces challenging times with a significant financial deficit.
- A £63 million loss was recorded as sales dropped to their lowest since 2017.
- Retail sales plummeted by 8.6%, prompting a substantial internal restructuring.
- Inflation and economic pressures contributed significantly to these financial difficulties.
- Despite setbacks, Quorn continues to lead in its sector with ongoing innovation.
Marlow Foods, known for its plant-based brand Quorn, has reported a loss of £63 million, marking a downturn in financial performance due to decreased demand for vegan products. Sales fell by 6.9% to £205 million for the year ending December 2023, reaching the lowest point since 2017. This significant slump forced the company to make difficult decisions, including cutting nearly 100 jobs as part of a strategic internal reorganisation.
The retail sector, particularly supermarkets, witnessed a sharp decline in sales, falling 8.6% to £170.7 million. These challenges were compounded by the broader economic context, with Marlow Foods’ chief executive, Marco Bertacca, describing 2023 as a ‘challenging year’ influenced by soaring inflation and rising interest rates, factors which escalated production costs significantly.
Bertacca highlighted the continuous inflationary pressures faced by the company, which impacted their input costs throughout the year. Although efforts were made to control expenses, the need to minimize price hikes while maintaining consumer affordability resulted in operating losses. Bertacca stated, ‘2023 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 these challenges, Quorn remains a dominant force in the plant-based sector. Bertacca noted the company’s dedication to innovation, exemplified by their latest product developments such as the snacking range and new introductions like Cheesy Nacho Nuggs. The turbulent year for the plant-based industry has seen struggles across the board, with many companies facing similar declines in demand and financial strain.
The overall downturn in the plant-based food market has resulted in other brands such as Meatless Farm and Heather Mill’s VBites entering administration, while competitors like Beyond Meat strive to rebound from declining sales.
Despite financial setbacks, Marlow Foods remains committed to innovation and maintaining its leadership in the plant-based sector.
