Quorn eyes European expansion

By Laurence Gibbons

- Last updated on GMT

Related tags Investment Germany

Quorn has launched a European expansion drive in a bid to become a $1bn business
Quorn has launched a European expansion drive in a bid to become a $1bn business
Quorn Foods has launched a European expansion drive in a bid to “significantly” increase its presence on the continent and boost last year’s record turnover of £141M.

The firm will enter the German, Danish and Finish markets this month (October), following a two-year period of record growth for the company.

Its half-year results for 2014 showed a 9% increase in global sales volumes.

Reaching potential

Kevin Brennan, ceo of Quorn, said the German expansion was just the beginning of the firm reaching its potential of becoming a $1bn business.

“Despite the challenging economic environment in the eurozone countries, we believe the unique nature of Quorn enables us to continue to invest in new markets, including setting up our own sales office in Germany,”​ he said.

“With strong investment and through good local organisation, we’re confident that Quorn can become a market-leading brand.”

Germany has been recognised as a significant growth opportunity for Quorn, with the country’s meat-free market currently worth €100M and growing at 30% year-on-year, the firm claimed.

Ethical and sustainable consumption is a well-established national precedent, with a large contingent of the population already open to reducing meat in their diets and exploring protein alternatives, it added.

Quorn enters the German market following a two-year trial, with the company set to sell specially tailored products through German retailers, including Rewe, Edeka and Globus.

As well as entering Denmark and Finland, Quorn is currently evaluating several other European markets including Spain and France, Brennan revealed.

Growth all over the world

“We’re seeing growth all over the world, as people globally are re-thinking their meat-eating habits and becoming more aware of the ethical, health and environmental benefits Quorn offers,”​ he added.

“For the first time, more carnivores than vegetarians are eating our products, with two million more people buying our products over the last year.”

To help fuel this growth, Quorn has invested £30M​ to create a third fermenter at its Billingham production site near Middlesbrough.

Quorn’s overseas markets at a glance

  • International volume growth is up 16% year-on-year
  • Exports now account for approximately one third of Quorn’s overall sales revenue
  • Supplies to the southern hemisphere (Australia and South Africa) have increased by 76% in the past year
  • In the Nordics and Switzerland, year-on-year sales volumes have increased by 7% and 12% respectively
  • Last year, the UK business experienced its fastest ever growth, with a 13% increase in total sales, while most other food producers had flat sales
  • The company continues to increase its share of a growing market to 24.3%, helped by significant ad investment and a revamp of the core range

Source: Quorn Foods

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