Quorn parent company suffers £63m loss as demand for plant-based products falls

Marlowe Foods, the parent company of plant-based brand Quorn, has announced a loss of £63m as demand for meat alternatives continues to decline.

Sales fell by 6.9% to £205 million in the last financial year, prompting the company to cut nearly 100 jobs as part of a restructuring programme. Quorn sales across retailers fell by 8.6% in the 12 months to December 2023, reflecting a wider decline in the popularity of vegan diets in the UK.

The downturn comes as inflation and rising energy and ingredient costs put additional pressure on the company. Marlow Foods’ total workforce fell from 934 to 874 last year as it sought to control costs amid a difficult market environment.

Marco Bertaca, CEO of Marlowe Foods, acknowledged the difficulties, saying: “23 has been a challenging year as high inflation and interest rates continue to put pressure on consumers and the cost of producing our great food.” He added that despite efforts to curb price hikes, the company’s attempts to maintain affordability resulted in losses.

The slump in the plant-based industry has affected other brands as well, with companies like Meatless Farm and VBites collapsing. Market data shows that sales of chilled meat alternatives fell by 9.7% in the 12 months to May, also reflecting the difficulties faced by the industry.

Despite the challenges, Bertaca remains confident in Quorn’s mycoprotein technology, which uses fermented mushrooms to create protein-rich alternatives: “We truly believe there is nothing quite like mycoprotein. Fungi and fermentation could be the protein solution the planet needs.” .