Quorn puts European expansion on the menu

QUORN Foods is launching an ambitious programme of European expansion, as the company aims to significantly increase its presence on the continent over the next two years.

The move, starting with Germany, Denmark and Finland this month, follows a two-year period of record growth for the global leader in meat-free products, with half-year results for 2014 showing a 9% increase in global sales volumes, ensuring it remains on track to exceed last year’s record turnover of £141m. 

Quorn, which already operates in 16 international markets, will begin its expansion drive with a German market launch in early October. The move follows a successful two year trial, with the company set to sell specially tailored products through leading German retailers, including Rewe, Edeka and Globus, driving distribution and penetration.

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. 

Kevin Brennan, CEO of Quorn said: “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.  With strong investment and through good local organisation, we’re confident that Quorn can become a market leading brand.”

As well as Germany, Quorn is also launching nationally in Denmark and Finland in late October, building on initial smaller scale success in both markets, with the company currently evaluating several other European markets including Spain and France.

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

“Our expansion into Germany is just the beginning. Quorn has the potential to become a $1bn business, four to five times its current size, building on the success we are already experiencing across the globe.”

International volume growth is up 16% year-on-year and exports now account for approximately one third of Quorn’s overall sales revenue.

Last year, the UK business experienced its fastest ever growth, with a 13% increase in total sales. The company continues to increase its share of a growing market to 24.3%.

To help fuel this growth, Quorn is currently investing £30m to create a third fermenter at its Billingham production site near Middlesbrough, which will boost the company’s production capacity by 50%, creating up to 400 jobs in the process.

The company employs around 600 people and exports to 16 countries around the world, including Australia and the USA.