New owner predicts ‘significant growth’ for Quorn in US

Speaking to FoodNavigator-USA.com six weeks after Exponent Private Equity acquired the UK-based firm from Premier Foods, Quorn Foods chief executive Kevin Brennan said: “ Premier was very focused on the UK but Exponent has recognized the international potential of Quorn and sees the US as a significant growth opportunity.” He declined to say how much extra resource was being allocated to the US, but stressed: “The purchase by Exponent gives us access to the funds we need to develop the business, and the US is a priority market. At the moment, we are still at the stage of looking at what resources we need and evaluating the size of the prize. “But I can say we have scope to become a really substantial business in the US because we are bang on trend in terms of health and sustainability.” 8 percent share of meat-free market Quorn, which is made from mycoprotein, an edible fungus grown using a controlled fermentation process, was launched in the US in 2002, and is now worth $25-30m at retail level. “We’ve already got an eight percent share of the total US meat-free market ”, said Brennan, who is confident of sustaining double-digit growth in the US after securing a deal to supply 450 Target stores. “We’re growing 20% year-on-year; we have leadership in the natural channel and we’re making inroads into the mainstream channels too.” Supply chain revamp The firm was also looking at how to reduce supply chain costs and tailor its offer to a US audience though doing more end-product manufacturing locally, said Brennan. “At the moment, we do some finishing and packing here in the US but we are still shipping over a lot of finished goods to the US from the UK. “In the medium-term we want to ship over the frozen mycoprotein in bulk and then manufacture more finished products in the US, and we’re looking for partners to help us do this. But in the much much longer-term, it would clearly make sense that the mycoprotein itself was produced in the US as well.” Meat-free market opportunity While vegetarians were obvious customers, there was a wider market opportunity to woo shoppers trying to reduce their meat intake for health reasons (Quorn is high in protein and fiber, low in fat and calories, non-GMO and not officially listed as an allergen) or those trying to cut down on meat on environmental grounds, he said. “We’re trying to make it as easy as possible for people by making meat-free versions of their favorite products so they don’t have to make dramatic changes to eating habits. Burgers, meal centers and quorn pieces do very well here, whereas in the UK, we’ll do more business in sausages and mince/grounds.” Quorn typically performed best in stores with a dedicated natural and organic frozen section, he said . “In stores like this we tend to do really well, as Quorn gets great exposure alongside brands such as Amy’s Kitchen. “But where it is stocked next to the main frozen pizza section or next to the waffles it can get a bit lost as retailers do not necessarily stock it in the most logical place for consumers.” ‘Sensationalist and inaccurate’ attacks As for the sustained attack on Quorn mounted by the Center for Science in the Public Interest (CSPI), which alleges that Quorn causes “ dangerous allergic reactions ” and has backed a class action to this effect, Brennan was sanguine. “These claims are sensationalist, inaccurate and extremely frustrating, but then I can’t think of many brands that they [the CSPI] haven’t had a go at. However, I don’t think there is any evidence that this has had a big impact on our sales.”

New owner predicts ‘significant growth’ for Quorn in US

The US market has moved sharply up the priority list for meat-free brand Quorn following a change in ownership, with bosses now aiming to increase the amount of products manufactured Stateside.

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