Despite “poor” first-half sales outside of its home market, Swiss food group Orior believes there is still growth potential in the plant-based category. CEO Daniel Lutz highlighted Orior’s commitment to the plant-based segment as the company reported a 0.9% rise in group sales to SFr312.1m ($354.9m). However, sales in Orior’s convenience business division, which includes the Happy Vegi Butcher brand, dipped 0.1% to SFr109.8m, with the UK market underperforming. Lutz remains optimistic about the future of plant-based products, citing the increasing popularity of flexitarian diets.
In a similar vein, Dutch dairy giant FrieslandCampina plans to launch its chicken alternative, Tender’lish, in the UK market. Alison Lees, the UK marketing chief for the brand, noted that while the meat-free category faces challenges, there is still significant room for growth. She mentioned that there are millions of people who continue to buy into meat-free products, and the market has consistently shown double-digit growth.
Orior is intensifying its efforts in the plant-based category through a focus on new export sales markets, continuous innovation, and cost optimization in production. The company acknowledges the challenges posed by inflation and the loss of purchasing power in plant-based target markets outside of Switzerland. Orior has raised prices to offset higher input costs but did not disclose specific figures or the impact on volumes. The company operates in multiple channels, including retail, foodservice, and travel, offering a range of products such as ready meals, premium meats, pâtés, organic vegetables, and fruit juices.
Despite ongoing geopolitical challenges and price sensitivity for premium products, Orior remains proactive in managing input costs and maintaining a competitive position in the market. Energy costs have been secured up to 2024, and strategic sourcing of pork products at lower prices has helped mitigate potential price increases in Switzerland.
In the first half of the year, Orior achieved a gross margin increase of 314 basis points to 48.8%. However, the EBITDA margin remained flat at 9.8%, with a profit value of SFr30.5m. Net profit also remained steady at SFr12.9m compared to the previous year.