Quorn's Parent Company Reports £63m Loss Amid Plant-Based Market Slump

Marlow Foods, the parent company of plant-based brand Quorn, has reported a substantial £63m loss for the financial year ending December 2023. This financial setback comes amid a broader decline in demand for plant-based products across the UK market.

The company experienced a 6.9% decrease in sales, with revenue dropping to £205m. This downturn led to a restructuring program resulting in the elimination of nearly 100 positions, reducing the overall workforce from 934 to 874 employees.

The challenges faced by Marlow Foods reflect a larger trend in the plant-based food industry. As of September 2024, the popularity of veganism in the UK has been waning, primarily due to economic factors affecting consumers. The high cost of plant-based alternatives has become increasingly unappealing to budget-conscious shoppers in the current economic climate.

Quorn, a pioneer in the plant-based market since its launch in 1985, has seen its retail sales decline by 8.6% in the 12 months leading to December 2023. This downturn is part of a broader industry trend, with chilled meat alternatives experiencing a 9.7% sales decrease in the year leading up to May 2024.

The financial strain on Marlow Foods was exacerbated by high inflation rates, which significantly increased the costs of energy and ingredients. This economic pressure has forced the company to implement cost-control measures while attempting to maintain affordable pricing for consumers.

"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. In this difficult context, the key markets in which we operate were down."

The plant-based food industry has faced numerous challenges recently. Some brands, such as Meatless Farm and VBites, have entered administration, while others like Heck have significantly reduced their vegan product offerings due to decreased demand.

Despite these challenges, Quorn remains committed to its unique mycoprotein technology. This protein source, derived from the fungus Fusarium venenatum, is produced through a fermentation process similar to beer brewing. The company believes that fungi and fermentation could provide a sustainable protein solution for the planet's future needs.

Quorn's mycoprotein production boasts impressive sustainability credentials, using 90% less land and water compared to beef production. The company has also achieved carbon-neutral certification for its UK products since 2012 and aims to become a net-positive business by 2030.

As the plant-based industry faces scrutiny over ultra-processed foods, Quorn continues to invest in research and development. The company has explored innovative applications for mycoprotein, including its potential use in 3D-printed meat alternatives.

While the current market presents significant challenges, Marlow Foods and Quorn remain focused on their long-term goals of providing sustainable, nutritious, and affordable plant-based options to consumers worldwide.