UK-based manufacturer Samworth Brothers is set to close its plant-based factory, Revolution Kitchen, later this year.
The vegan-approved manufacturing facility, located in Leicestershire in the English Midlands, has been experiencing significant losses.
In a statement, Samworth Brothers said, “Despite substantial investment over recent years and the commitment and hard work of everyone connected with the business, Revolution Kitchen has continued to make significant losses.”
In July, it was revealed that the company was consulting with its staff regarding the potential closure of the site, which was opened in 2020.
Revolution Kitchen produces private-label products, including the Wicked Kitchen range for Tesco. The Wicked Kitchen portfolio features plant-based frozen ready meals, pizzas, ice cream, meat, and fish.
Samworth Brothers stated that the factory “operates in a product area that is currently experiencing some challenges and a decline in sales volumes.”
The company has not specified the exact date of the plant closure but mentioned that the majority of its staff have been redeployed to other Samworth Brothers facilities in the area.
Samworth Brothers added, “Redeployment discussions are still ongoing. We entered into consultation with 169 colleagues.”
Aside from plant-based food, Samworth Brothers operates in the food-to-go, savoury pastries, and cooked meals sectors.
In 2022, the privately-owned group saw a turnover of £1.18bn ($1.44bn), marking an 18% increase from the previous year. Operating profit rose to £42.6m, compared to £37.5m in 2021. Profit for the year was £32.3m, up from £19.6m the year before.
In February, the company made an investment in the plant-based meat start-up Tiba Tempeh.
However, due to declining sales of plant-based foods in the UK, various companies are reassessing their operations, resulting in business closures.
Recently, Hilton Food Group consolidated its operations for meat alternatives to mitigate the impact of market changes in the category.
Plant & Bean, another UK-based plant-based company, called in administrators in June, and options for the business are currently being explored.
In contrast, VFC Foods acquired The Meatless Farm Co brand in June after the latter went into administration.
In other news, businesses in the industry continue to invest, with Finnebrogue announcing plans to invest £2.8m ($3.6m) to upgrade its plant-based food factory in Northern Ireland.
