Sales rise at Yorkshire-based Quorn as Greggs’ vegan sausage rolls prove a hit with consumers

Quorn Foods, which is based in Stokesley, North Yorkshire, said it was also stepping up investments in research and development to ensure it can capitalise on the trend towards veganism and flexitarianism.

Quorn said it had reported steady global sales growth of 7 per cent to £220m during 2018.

A spokesman said: “This growth follows Quorn’s strongest ever year in 2017, and sees the company continue to build on the recent momentum of the various new products launched throughout 2018.

“The growth was limited materially by a factory fire in June and the need to add additional capacity to meet growing demand.”

Overall profit was down from £32m in 2017 to £27m in 2018 as the business continued to ramp up its research and development capability.

It has invested £5m into a variety of new development projects to create its “strongest ever” innovation pipeline, the company said.

The spokesman added: “Today’s announcement marks a period of sustained growth from 2016-2018, which saw demand grow by 35 per cent. As consumers around the world continue to embrace more plant-based protein in their diets, future demand is expected to grow sharply.”

Quorn Foods also launched several successful vegan products in 2018. January 2018 saw the launch of the Quorn vegan smoky ham-free and vegan chicken-free sandwich slices, which were the two biggest new vegan products in UK grocery in 2018, followed by the successful vegan sausage roll launch in partnership with Greggs.

Kevin Brennan, the CEO of Quorn Foods, said: “Today’s results reflect the strong momentum we’ve seen since 2016.

“While it’s important that Quorn continues to grow, it’s vital that we do so in a sustainable way. As we continue to make progress, it’s clear that now is the time to invest heavily in research and development to ensure we lead the world in delivering great solutions to the climate issues associated with meat production.”

Internationally, Quorn Foods saw increased momentum in several key markets in 2018, with sales growth in Australia reaching 38 per cent, and US sales climbing 24 per cent.

Further investment in the US also seems to be paying off for Quorn Foods in early 2019, where the company has seen a “considerable increase” in the uptake of its products, through partnerships with leading grocery chains such as Kroger.

“In a market where $2.3bn of chicken nuggets are sold every year, the fact that Quorn nuggets are the fastest selling product within the meat-free category in Kroger is testament to the superiority of our products. It highlights the great opportunity we have in the US market, where we expect sales to grow by 45 per cent in 2019” Mr Brennan said.

Quorn’s research and development initiatives have led to a strong start to 2019, the company said.

It has launched the new Fishless Fillets range which has already exceeded sales expectations.

Quorn’s range of 10 cupboard friendly convenience foods are set to hit shelves in June.

From its base in North Yorkshire, Quorn Foods has grown to become a global market leader in healthy, sustainable protein.

The company employs around 800 people and exports to 20 countries, including Australia, South Africa and the USA.

Quorn is one of the UK’s top 50 FMCG brands. Quorn Foods Ltd is the reporting group which includes a main trading company, Marlow Foods Ltd. Quorn Foods Ltd encompasses all international operations of Quorn and Cauldron.