Marlow Foods, the parent company of plant-based brand Quorn, has reported a £63 million loss as demand for meat alternatives continues to decline.
Turnover fell 6.9% to £205m last financial year, prompting the company to cut almost 100 jobs as part of a restructuring programme. Quorn’s sales at retailers fell 8.6% in the twelve months leading up to December 2023, reflecting a wider decline in the popularity of veganism in Britain.
The downturn is because inflation and rising costs for energy and ingredients are putting extra pressure on the company. Marlow Foods’ total workforce fell from 934 to 874 last year as the company sought to control costs in a challenging market environment.
Marlow Foods CEO Marco Bertacca acknowledged the problems, saying: “Twenty-three has been a challenging year as high inflation and interest rates continue to put pressure on consumers and the costs of producing our delicious food.” He added that despite efforts to minimize price increases, the company’s efforts to maintain affordability led to losses.
The slump in the plant-based industry has also hit other brands, with the likes of Meatless Farm and VBites entering administration. Market data shows that sales of chilled meat alternatives fell 9.7% in the 12 months to May, further reflecting the sector’s problems.
Despite the challenges, Bertacca remains confident in Quorn’s mycoprotein technology, which uses a fermented fungus to create protein-rich alternatives: “We truly believe there is nothing as good as mycoprotein. Fungi and fermentation could be the protein solution the planet needs.”