Quorn boss bullish on $1bn growth target

THE chief executive of global food manufacturing firm Quorn is confident he can build a $1bn business, four to five times its current size.

Stokesley-based meat-alternative food producer Quorn has continued to grow its sales.

Sales were up 13.5% in Q1 of 2014 and UK and international sales grew by 12% and 21% respectively. Last year, the UK business experienced its fastest ever growth (a 13% increase in total sales) and this year, Quorn expects to double this and see UK turnover of £130m.

Chief executive Kevin Brennan told TheBusinessDesk.com that to become a $1bn company, it could take about 10 years or more, but said it gives the firm an end goal to be aiming for.

“It is easy to get satisfied at 5% growth but this is a way of making sure we’re always looking for aggressive growth,” Brennan said.

“We know how to grow and we’ve got a good international focus – I believe we can be a really, really big business.”

Quorn has no plans at this stage to sell the business.  Brennan said: “The direction we have from our owners, Exponent, is to keep growing the business.  At some point in the journey we will enter into a selling mode, but we’re very clearly in a growing mode at the moment.”

Quorn, which exports to 14 countries, said it is seeing “great” growth in international markets after developing specific products for different markets – such as changing certain ingredients and styles of dish to suit the consumer.

The firm which employs 370 of its 620 staff in North Yorkshire, said it has seen double digit growth in Sweden and is close to double digit growth in the US.

It also has plans to launch into France, Spain and Italy, with Latin America and Asia also holding opportunities, Quorn says.

“There are more markets than we have time and money to do the job properly at the moment. We would expect there to be a focus around Europe now and this year, exports will grow faster than UK sales,” Brennan said.

“We are launching into new markets with a much more aggressive strategy.

“We export a third of sales and that will continue to grow.”

Brennan says the biggest challenge for the business is expanding into international markets without being focused. “Many businesses fail because they go into new markets too fast and lose control of what they are doing. The biggest challenge is staying focused and building a strong brand.

“We don’t have a worry of growing – we know we can do that – but it about how and where.”

Quorn, which recently announced it was investing £30m over the next 18 months to create a third fermenter at its Billingham site near Middlesbrough, said big opportunities also lay with its food service arm.

Customers include Wetherspoon, Premier Inn and Ikea and Brennan said the business gains new clients on a weekly basis.

“There are big opportunities with this side of the business,” Brennan said.

“The market is growing, we are growing and have proved that when we invest, it works, so we are confident we will continue to grow.”