The parent company of Quorn has plunged to a £63m loss amid a slowdown in demand for plant-based products.
Marlow Foods sank deeper into the red during the last financial year, as sales fell by 6.9pc to hit £205m, which led to almost 100 jobs being shed as part of a restructuring programme.
It comes amid a broader slump in the popularity of veganism across the UK, as costly plant-based products fall increasingly out of favour among hard-up shoppers. According to Marlow Foods’ latest accounts, Quorn’s sales across retailers fell by 8.6pc in the 12 months to December 2023.
Dwindling demand was compounded by the impact of high inflation last year, as the company was hit by the cost of energy and ingredients. This led to jobs being axed across a number of divisions at the business, as Marlow Foods’ overall headcount dropped from 934 to 874 over the last financial year.
Marco Bertacca, the company’s chief executive, said: “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.
“Continued inflationary pressure on our input costs in 2023 did have a significant impact. We have taken continuous actions to control our costs, but as we always seek to minimise price increases and protect affordability for our consumers, those dynamics resulted in making a loss.”
Challenges across the plant-based industry have led to some brands, such as Meatless Farm and Heather Mills’ VBites, collapsing into administration. Others, including Heck, significantly scaled back its vegan offering owing to reduced demand.
Figures from market researcher NIQ published in The Grocer show that the amount of chilled meat alternatives sold was down by 9.7pc in the 12 months to May.
More recently, manufacturers of plant-based alternatives have been scrutinised over alleged ties to ultra-processed foods, such as meat-free burgers and sausages.
Launched in 1985, Quorn has emerged as one of the best-known plant-based brands in Britain. Its products use mycoprotein, which is made by fermenting a natural fungus called fusarium venenatum. This is done via a process similar to how bread and beer is made.
Mr Bertacca said its mycoprotein technology helps to give Quorn the edge over other vegan products: “We truly believe that there’s nothing quite like mycoprotein. Fungi and fermentation can be the protein solution the planet needs.”
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