Imitation game: Quorn grows its reputation

When Quorn was first introduced to supermarket shelves in 1993, it was met with delight from vegetarians, suspicion from meat-eaters and nobody outside the UK had ever heard of it.
Kevin Brennan watching Quorn cocktail sausages being manufacturedKevin Brennan watching Quorn cocktail sausages being manufactured
Kevin Brennan watching Quorn cocktail sausages being manufactured

Fast-forward 23 years and the meat alternative producer is a global brand with a £170m turnover whose products are now more likely to be found on a meat-eater’s plate than a vegetarian’s as people increasingly try to eat more healthily and sustainably.

The carbon footprint of Quorn frozen mince in the UK is claimed to be at least 80 per cent less than that of beef.

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Quorn, which is made from mycoprotein, a member of the fungus family grown and mixed with egg whites to create textured imitation meats, is produced in Stokesley, North Yorkshire. Philippine noodle-maker Monde Nissin, which bought the brand late last year for £550m from private equity owners, plans to grow it into a $1bn business in the next decade.

Much of this growth will come from the international market. The meat-free brand, which operates in 19 international markets, is seeing its products perform strongly overseas.

Europe, the US and Australia are the main foreign growth areas for Quorn. In the US, sales grew by 20 per cent in the first half of 2016, driven by distribution expansion and a positive response to the new vegan products.

Germany saw sales increase by 60 per cent, helped by the first national television campaign by Quorn.

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Meanwhile, in the Nordic countries, sales were up 20 per cent in the first half of the year on the back of investment in advertising and new product development.

Chief executive Kevin Brennan said: “Whilst there are lots of growth opportunities in the UK, the main opportunities to accelerate growth are international.

“The biggest difference with the new owners is their long-term vision. They are looking ahead to growing over the next 20-30 years.

“We are now able to do things you can’t do on a five-year horizon, which has enabled us to invest in marketing and distribution and grow the business more.

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“We were growing about eight per cent a year before but now we are stepping it up to 15 per cent and beyond.”

Sales this year are expected to increase by 10 per cent.

Investment by Quorn’s new owner has led to its expansion into three new foreign markets in 2016 as export sales accelerate by over 15 per cent.

The global meat alternative producer has moved into Spain, France and Italy this year, following successful trials in all three countries.

Mr Brennan said: “Prior to being bought by Monde Nissin, we knew there were new market opportunities but we didn’t have the resources to exploit them.” One of the emerging markets for its products is South East Asia, which is a target for future expansion.

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Meanwhile, the meat-free market leader – advertised in the UK by double Olympic Gold medal-winner Mo Farrah – recently announced that is was making a record investment of £23m across foreign and domestic markets to ensure continued growth.

Quorn Foods has around 620 employees on three UK sites and internationally: Stokesley in North Yorkshire, Billingham on Teesside and Methwold in Norfolk, as well as Frankfurt in Germany, and Chicago in the US.

Plans are in place to invest in the capacity of its factories to increase production. The firm is investing £10-15m a year to produce more products and at a lower cost per tonne.

Mr Brennan said: “The UK remains important to us but retail is a tough environment.

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“We will keep investing in advertising, launching new product development and developing new channels in the UK.”

The company has taken on 25 new staff so far this year and that number will rise to over 30 by the end of the year.

Following on from the UK’s vote to leave the EU, Quorn’s boss is urging the Government to do more to support exporting businesses and find a quick solution to trading in Europe.

Mr Brennan said: “The result of the Brexit vote has offered up both opportunities and challenges for Quorn.

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“The weaker pound has actually benefited our exports and so we will continue to invest. Along with other manufacturers, however, we want to see an end to the current uncertainty on how we will trade so we can continue to invest with confidence.”

Mr Brennan said his preference would have been for Britain to remain in the European Union, but the decision to leave will not affect the company’s growth plans.

“We are not beholden to exporting to the EU; we are also expanding elsewhere,” he added.

“Having said that, it would not make sense to have really high tariffs attached to food exports in Europe and it’s in both sides’ interest to find a solution.”

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Quorn’s biggest-selling products are mince and chicken-style pieces due to their versatility. Sausages and coated chicken substitute products are also popular.

Its vegan products are also taking off both in the UK and abroad, particularly in Australia, South Africa and the US.

Mr Brennan said: “It’s been a great start to the year as the trend amongst consumers to reduce meat consumption and look for alternatives continues to grow.

“Monde Nissin has made clear its belief in the long-term potential of Quorn and has committed to investing significantly which is already having an impact.

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“Our ambition has been to make Quorn a $1bn global business and we are well on the way to achieving this within the next 10 years with the launch into these three new markets serving to further accelerate our growth.”

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