Henry Soesanto, CEO and major shareholder of Monde Nissim Corp., has announced he is to provide financial support for its alternative meat company Quorn via MNSG Holdings, a family business.
In April, Monde Nissin took an impairment charge of over $350 million on Quorn (acquired in 2015) due to the plant-based industry’s headwinds in the UK and globally. Now, Soesanto has pledged to backstop new impairment losses by backing the Quorn with his family’s fortune for the next ten years.
The meat-free market is encountering challenges, due to macroeconomic conditions affecting Europe and the USA. However, it is reasonable to assume that growth will come back, he told Inquire.Net.
The news comes only months after Marlow Foods, the parent company of Quorn, launched its ingredients division to provide mycoprotein to European manufacturers.
Headquartered in the UK, Quorn is considered Europe’s top alt protein brand, offering more than 100 products. The brand is available in 16 countries worldwide. In recent years, the company has been focused on increasing its offering to cater to the growing demand for plant-based products.
In 2021, Quorn opened a culinary center in Dallas and announced plans to produce its mycoprotein in the country in the following years. Recently the company joined forces with Prime Roots to develop market expansion opportunities for mycelium-based alt meats.
Improving and adjusting the strategy
Like other companies in the sector, including Beyond Meat and Meatless Farm (recently acquired by VFC), Quorn has been battling cost increases, supply chain shortages, and losses in sales after the pandemic.
In October, The Guardian reported that Marlow Foods experienced a £15.5 million financial loss for 2022 due to increased expenses and decreased retail sales. Sales of Quorn’s mycoprotein-based products shrank by 4.3% in supermarkets and other retail outlets, while total sales rose 1.3% to £228m.
Marlow Foods’ total sales surge is attributed to food service, where the brand has been increasing its offerings at KFC across Europe and other establishments such as pub chain Wetherspoon and bakery chain Greggs.
Looking at recent figures, according to Nielsen IQ data published by the Grocer, the retail volume of Quorn and Cauldron products plunged by 11% and 23%, respectively, from January to July 2023.
In the middle of this turmoil, Quorn’s CEO, Marco Bertacca, remains confident. Commenting on Soesanto’s risk financing, he said that additional support from major shareholders will help the company improve its market position and adjust its business strategy. He added that the company is optimistic about its food service business and newly launched food ingredients segment.
