Marlow Foods, known for Quorn, faces substantial financial challenges as demand for plant-based products declines.
- In 2023, Marlow Foods reported a loss of £63 million due to diminished sales in their key markets.
- Their annual sales dropped by 6.9% to £205 million, marking the lowest since 2017.
- A significant drop in supermarket sales by 8.6% forced the company to restructure, eliminating nearly 100 jobs.
- CEO Marco Bertacca highlights inflation and interest rates as key factors impacting production costs.
In a recent financial report, Marlow Foods, the parent company of Quorn, reported a significant financial setback for the year 2023. The company experienced a £63 million loss, reflecting a troubling downturn in the plant-based food sector, primarily attributed to a weakening demand for vegan products.
The fiscal year ending December 2023 saw Marlow Foods’ sales plummeting by 6.9%, reaching a low of £205 million. This slump reverted sales figures to levels not seen since 2017, indicating substantial challenges for the company in maintaining its market position.
An even more alarming aspect of Marlow Foods’ financial decline was the pronounced decrease in retail sales within supermarkets, where sales dropped by 8.6% to £170.7 million. This downturn in supermarket sales necessitated a significant internal restructuring, resulting in the layoff of approximately 100 employees to streamline operations.
Marco Bertacca, the Chief Executive Officer of Marlow Foods, characterized 2023 as a ‘challenging year,’ underscoring the impact of rising inflation and increasing interest rates that exerted pressure on consumers, while simultaneously escalating production costs. 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, Bertacca asserted that Quorn continues to lead in its category and emphasized the company’s ongoing focus on innovation with new product developments such as their snacking range and Cheesy Nacho Nuggs. However, the broader plant-based industry is experiencing turbulence, with peers like Meatless Farm and Heather Mills’ VBites facing administration, and Beyond Meat undergoing efforts to mitigate declining sales.
Marlow Foods’ financial challenges highlight the broader struggles within the plant-based sector amid declining consumer demand and rising production costs.
