Monde Nissin Reports Challenging Q1 for Quorn Foods
Instant noodles giant Monde Nissin has revealed that sales in its Quorn Foods meat alternatives division fell by 5.8% on a constant currency basis in the first quarter of 2025. This decline is comparatively better than the overall alternative meat market in the UK, which dropped by 8.9% during the same period.
According to reported net sales, the division—which includes the Quorn and Cauldron brands—decreased by 3.8% to PHP 3.29 billion ($59.2 million).
CEO Henry Soesanto noted in the earnings call that the UK market is in a depressed state, impacting both the Cauldron brand and the foodservice sector, which faced a challenging quarter. However, he mentioned that the bottom line at Quorn Foods improved due to factors such as lower input costs, supply chain restructuring, and a decrease in inventory. Additionally, the company saw double-digit growth in savory snacking products such as bite-sized snacks and sausage rolls, which helped increase market share.
Strengthening Partnerships
Despite the overall struggles in the foodservice sector, Quorn Foods is enhancing its collaboration with fast-food chain KFC. CEO David Flochel, who took over last year, indicated that they are currently expanding their menu offerings in France alongside KFC.
Moreover, Quorn Foods is collaborating with various large-scale caterers to incorporate their mycoprotein into existing meat products to enhance their health profiles and environmental sustainability. Flochel expressed the intention to stabilize the foodservice channel by achieving flat growth by the end of the year.
US Market Challenges
Although Quorn was officially launched in the US back in 2002, it only accounts for 5% of total sales compared to approximately 9.4% in 2020. Flochel mentioned that all products currently sold in the US are imported from the UK, with most being finished goods. Starting in April, a new tariff of 10% on imports was introduced, yet the US operations continue to break even financially.
Despite the good news, Flochel acknowledged that market conditions in the US remain tough. He stated that the company is currently reassessing its strategy for the US market and plans to unveil a revised roadmap later this year.
Challenges for Cauldron
Cauldron, known for its falafel, tofu, and sausage products, has been facing tough competition across all three segments. Quorn Foods’ CFO Nick Cooper noted that while current innovations have yet to reflect in financial results, they are actively working on enhancing their offerings in the tofu and falafel segments to improve competitiveness.
Flochel acknowledged Cauldron’s difficulties and emphasized that they are prioritizing brand protection focused on snacking, with strong plans aimed at revitalizing the brand in the upcoming year.
Innovative Mycoprotein Production
Quorn mycoprotein, an edible filamentous fungus known as Fusarium Venenatum, is recognized for being high in protein and fiber while low in saturated fat and calories. It was first discovered in the soil of Buckinghamshire, UK, in the late 1960s. Quorn was officially launched in the UK in 1985 and later introduced to the US in 2002. Monde Nissin, a leading consumer packaged food company based in the Philippines, acquired Marlow Foods, Quorn’s parent company, in late 2015 for £550 million ($695 million), including the Cauldron Foods brand.
According to Monde Nissin’s 2024 annual report, the UK accounted for 78.6% of sales in its meat alternatives business in the previous year, while the US contributed 5.6%, with the remainder covered by sales in the Republic of Ireland, mainland Europe, Southeast Asia, and Australasia. Circana data indicates that Quorn and Cauldron were the top two brands in the UK market, holding 27.2% and 4.4% share of the grocery retail market by value in 2024.
