Marlow Foods, parent company of Quorn, reports significant financial losses amid a decrease in demand for plant-based products.
- Sales decreased by 6.9% to £205m, resulting in approximately 100 job losses as part of restructuring efforts.
- Inflation and rising costs for energy and ingredients have heavily impacted the company’s operational expenses.
- The plant-based industry faces broader challenges, with other brands also experiencing financial difficulties and market declines.
- Marlow Foods’ CEO Marco Bertacca remains optimistic about the potential of Quorn’s unique mycoprotein technology.
Sales at Marlow Foods, the parent company of Quorn, fell by 6.9% to £205 million in the last financial year. This decline prompted the company to cut nearly 100 jobs as part of a necessary restructuring program. Across retail outlets, sales of Quorn products dropped by 8.6% over the 12 months leading up to December 2023. This reduction in demand reflects a broader decline in the popularity of veganism within the UK market.
The downturn in sales coincides with increasing operational expenses driven by inflation and rising costs for both energy and ingredients. Marlow Foods has been striving to control costs within a challenging market environment. The company’s overall workforce reduced from 934 to 874 last year, as it endeavored to maintain financial stability amid these economic pressures.
CEO Marco Bertacca acknowledged the challenging market conditions, quoting, ‘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 efforts to keep price increases minimal, maintaining affordability has led to financial losses.
The plant-based industry is facing a slump, illustrated by the collapse of other brands like Meatless Farm and VBites into administration. Market data highlights a 9.7% fall in sales of chilled meat alternatives over a 12-month period, further underscoring the industry’s struggles.
Despite these challenges, Bertacca remains confident in the potential of Quorn’s mycoprotein technology, stating, ‘We truly believe that there’s nothing quite like mycoprotein. Fungi and fermentation can be the protein solution the planet needs.’ This innovative approach uses a fermented fungus to create protein-rich alternatives, offering a glimpse of hope for the company’s future in a tough market.
Marlow Foods faces significant challenges, yet remains hopeful about future sustainability through innovation in mycoprotein technology.
