The restructuring of Quorn Foods’ plant-based operations in the UK is set to result in unspecified job losses, but the company’s owner, Monde Nissin, has confirmed that no factory closures will occur. Monde Nissin, headquartered in the Philippines, indicated that the exact number of job cuts will be determined as the business transformation program, led by new CEO David Flochel, progresses.
Flochel, who previously held executive positions at Heineken, Mars, and Unilever, was appointed as the successor to Marco Bertacca in October. Though he has already joined Quorn Foods, he will officially assume the CEO role in January.
Following the announcement of his appointment, Monde Nissin reported a further decline in demand for its plant-based meats, which has impacted its financial results throughout 2023 and 2024. The nine-month financial report released in November noted a restructuring initiative aimed at streamlining costs and simplifying operations.
Forbes recently reported that Monde Nissin plans to reduce its workforce significantly at Quorn as it shuts down certain plants and streamlines its supply chain.
While the company acknowledged that jobs in the UK would be lost, it refrained from providing specific numbers before Flochel officially begins his tenure as CEO. However, it clarified that none of Quorn Foods’ facilities would be closing.
Monde Nissin conveyed that the addition of a fifth fermenter at Quorn Foods’ Billingham site in County Durham has been canceled. The decision to halt this expansion was made in 2023, primarily due to the anticipated volume growth that did not materialize.
A representative from Quorn Foods noted that the two other manufacturing plants are located in Stokesley, North Yorkshire, and Methwold, Norfolk. Monde Nissin admitted that they had over-invested in both personnel and manufacturing capacity, expecting significant growth in the meat-free segment of the food and beverage industry.
As they presented the nine-month results in November, Monde Nissin’s CEO Henry Soesanto mentioned that Quorn Foods aims to achieve annual cost savings of £8 million ($10 million) through the restructuring plan during 2024 and 2025. He emphasized that these changes are designed to position the company for future success.
The meat-alternatives division reported an EBITDA loss of 137 million pesos ($2.3 million) in the first nine months of 2024, a deterioration from the 94 million pesos loss in the same period last year. Sales dropped 2.1% to total 10.1 billion pesos, while net losses after tax decreased to 655 million pesos from 759 million pesos.
In closing, the restructuring efforts reflect an adaptation to evolving food and drink consumer trends. These necessary changes will help Quorn Foods navigate challenges within the dynamic food and beverage industry while striving for stability and growth.
