Marlow Foods, the owners of Quorn, report significant financial losses attributed to declining sales of vegan products.
- A £63m loss was recorded for 2023, marking sales at their lowest since 2017.
- Supermarket sales saw an 8.6% decline, impacting overall revenues severely.
- Rising inflation and interest rates are cited as contributing factors to Marlow Foods’ difficulties.
- Innovations in product lines continue despite these financial challenges.
Marlow Foods, the proprietor of the well-known plant-based brand Quorn, has reported a substantial financial setback. In the fiscal year ending December 2023, the company experienced a significant £63 million loss, a direct consequence of a 6.9% reduction in sales, bringing revenues down to £205 million, their lowest level since 2017.
The adverse impact was particularly notable in supermarket sales, which decreased by 8.6% to £170.7 million. This decline has been part of the broader challenges faced by Marlow Foods, resulting in a decision to reduce their workforce by nearly 100 employees as part of an organisational restructuring effort.
Marco Bertacca, the Chief Executive Officer of Marlow Foods, described the financial year as “a challenging year”. He highlighted the persistently high inflation and interest rates as key factors exacerbating production costs and pressuring consumer spending power. 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 the financial difficulties, Bertacca asserted that Quorn continues to lead in its category. The company has focused on new product developments, such as its snacking range and Cheesy Nacho Nuggs, to maintain market interest and consumer engagement.
The plant-based food sector has encountered broader market challenges, with several brands experiencing similar declines in consumer demand for vegan products. Major names like Meatless Farm and Heather Mill’s VBites have even entered administration, while others like Beyond Meat are striving to reverse declining sales trends.
While facing significant financial pressures, Marlow Foods remains committed to innovation within the challenging plant-based sector.
