Quorn Owner Reports Loss as Sales Drop to Lowest Level Since 2017

Marlow Foods Faces £63M Loss Due to Declining Vegan Product Demand

In the 12 months leading up to December 2023, the company experienced a 6.9% drop in sales, falling to £205 million, the lowest level since 2017. This decline has led to internal restructuring and the unfortunate decision to cut almost 100 jobs.

Challenges Faced by Marlow Foods in 2023

According to CEO Marco Bertacca, “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.” He further explained that the key markets in which Marlow Foods operates were underperforming, contributing to the financial losses.

Bertacca also highlighted that the continuous inflationary pressures on input costs in 2023 had a substantial impact on the company’s financial health. Despite efforts to control costs, Marlow Foods aimed to minimize price increases to protect consumer affordability, which ultimately resulted in the reported loss.

Quorn Maintains Leadership Despite Market Pressures

Despite the challenges, Bertacca emphasized that Quorn remains a leader in its category. He pointed to the company’s recent innovations, including a new snacking range and other products like Cheesy Nacho Nuggs, as signs of resilience and commitment to meeting consumer needs.

Decline in the Plant-Based Sector

The loss reported by Marlow Foods comes during a turbulent period for the plant-based sector. Many FMCG companies have been hit by decreasing demand for vegan options. Brands like Meatless Farm and Heather Mill’s VBites have fallen into administration, while others, such as Beyond Meat, struggle to reverse their declining sales.

Impact on Retail Sales

The decline was particularly evident in Marlow Foods’ performance in supermarkets, with retail sales dropping by 8.6% to £170.7 million. This trend reflects broader challenges in the retail market for plant-based products.

Looking Ahead

Despite these setbacks, Marlow Foods is focused on maintaining its market position and continuing to innovate within the plant-based sector. The company remains optimistic about its ability to navigate these challenging times and return to profitability in the future.