The plant-based sector is witnessing significant shifts with major brands facing financial and operational challenges.
- Plant-based brands are struggling to maintain growth amidst rising cost pressures and economic challenges.
- Meatless Farm was recently rescued after facing a cashflow crisis and filing for administration.
- Vegan Fried Chick*n (VFC) is expanding its presence and continued to invest in new product lines despite industry hurdles.
- Beyond Meat is experiencing a decrease in sales amidst increased scrutiny over health perceptions and economic factors.
The plant-based food industry is encountering substantial challenges as economic pressures rise. Seventy-three percent of vegan shoppers are actively seeking to cut costs on their groceries. Over recent months, several meat alternative brands have struggled with declining sales and profits, difficulty in securing funding, or have ceased operations entirely.
Meatless Farm found itself in a precarious financial position earlier this year, seeking new investment as it faced looming cash shortages. The company had to make substantial workforce reductions and filed for administration amidst operating losses nearing £50 million over three years. However, rival brand VFC stepped in, acquiring Meatless Farm in what was described as a “golden opportunity” to innovate within the plant-based sector. Post-acquisition, Meatless Farm’s products have returned to shelves, reviving its presence in the market.
VFC, a newer entrant in the market since 2020, has rapidly expanded, securing listings in major UK retailers and consistently launching new products. In 2022, its growth was bolstered by significant investment, allowing it to scale efficiently. VFC’s recent acquisition of Meatless Farm highlights its strategic position and ongoing commitment to growth amidst industry changes.
Beyond Meat, an established name in plant-based foods, has reported a near one-third drop in sales during its second quarter. The company attributes this decline to reduced demand in the plant-based sector as well as broader economic issues like inflation and recession fears. Beyond Meat’s CEO, Ethan Brown, highlighted increased scrutiny over the health implications of processed plant-based foods and emphasized the need for educational marketing initiatives to counteract these perceptions.
LoveSeitan, a brand known for its seitan-based products, announced it has ceased operations following lacklustre sales. The company faced unfavourable market conditions and rising costs, ultimately unable to persuade a sufficient number of consumers about the benefits of seitan as a meat substitute. Co-founder Steve Swindon expressed gratitude for the journey despite the brand’s closure.
Another brand, which launched in 2019, has effectively navigated the financial landscape by raising substantial funds and achieving broad distribution. It endeavours to bring traditional meat-eaters into the plant-based fold, maintaining a strong research and development pipeline. This brand’s strategy includes launching new product categories and securing innovative partnerships, allowing continued growth despite broader industry adversities.
The plant-based sector is navigating a turbulent financial landscape, with brands adapting strategies to survive and thrive.
