Quorn’s parent company, Marlow Foods, has reported a substantial loss of £63 million. This alarming financial result highlights the growing challenges faced by the plant-based food industry.
Despite the company’s efforts to minimise price increases and maintain affordability, the decline in demand for plant-based products, coupled with inflation and rising costs, has led to significant financial strain.
Sales Decline and Job Cuts
Sales for Marlow Foods fell by 6.9% to £205 million in the last financial year, prompting the company to shed nearly 100 jobs. This restructuring move reflects the broader decline in the popularity of veganism within the UK.
Quorn’s retail sales dropped by 8.6% in the 12 months leading to December 2023, a direct consequence of waning consumer interest in plant-based products and the financial pressures of inflation and rising costs.
Impact of Rising Costs
Inflation and increased costs for energy and ingredients have put additional strain on Marlow Foods. As a consequence, the overall workforce has decreased from 934 to 874 last year as the company sought to control expenses amid a challenging market environment.
Marlow Foods’ CEO, Marco Bertacca, acknowledged the difficulties, 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.”
Industry-Wide Slump
The downturn in the plant-based industry is not isolated to Quorn. Companies like Meatless Farm and VBites have also collapsed into administration, struggling to withstand the same market pressures.
Market data further underscores the industry’s challenges, with sales of chilled meat alternatives falling by 9.7% in the 12 months to May. This substantial decline highlights the growing hardships faced by companies within the sector.
Efforts to Mitigate the Impact
Despite efforts to minimise price increases, Marlow Foods has found it challenging to sustain profitability. The company’s attempts to maintain affordability for consumers contributed to their financial losses.
Marco Bertacca expressed his confidence in Quorn’s mycoprotein technology, stating it could be a critical solution. “We truly believe that there’s nothing quite like mycoprotein. Fungi and fermentation can be the protein solution the planet needs.”
Current Market Challenges
The plant-based food sector is navigating a tumultuous landscape. Increasing costs for production elements such as energy and ingredients have added to the pressure.
Companies across the industry are either restructuring or, in more severe cases, entering administration due to unsustainable financial burdens.
Future Prospects
Despite the present challenges, there is a sense of optimism for the future. Marco Bertacca remains confident in the innovative potential of mycoprotein technology as a sustainable protein alternative.
Long-term, the hope is that advances in production efficiency and consumer education on the benefits of plant-based foods will help revitalise the market.
The financial losses faced by Marlow Foods and other companies in the plant-based sector underscore the significant challenges posed by rising costs and declining demand. However, there remains a cautious optimism that innovation and a focus on sustainability will drive future growth.
As the industry evolves, companies will need to adapt to market conditions and consumer preferences to ensure their long-term viability.
