£35m Marlow plan on track
MARLOW FOODS - the world’s only producer of vegetarian products based on micro protein, grown and harvested on Teesside - said it was pressing ahead with a £35m investment as growth forecasts for its Quorn brand outstripped even the most optimistic food producer’s hopes for 2009.
Peter Banks, commercial director for the £130m turnover company, which was bought by Premier Foods in 2007, said sales would be in excess of 12% for the UK, driven by increased interest in healthy, low fat diets. “Outside of the UK we would expect to go even higher into double digits,” he said.
The firm, which employs 340 across two sites at Belasis and Stokesley and a further 420 at a third site in Norfolk, said it would enter new markets outside of its EU and US strongholds this year as appetite for its Quorn products increased. It would also continue building its hand held snack food ranges and expand further into the school meals sector, which had grown “significantly” last year.
With a 55% slice of the entire meat free market in the UK and double digit volume growth every year for the past five years, Mr Collins said the firm had squeezed 25% additional capacity out of its existing two plants on Teesside while construction continued on a third fermentation unit.
“But we are now going to split the project into two. We are going to invest in updating the site’s services, for example cooling and heating, so we can delay the start of the third plant until we need it.
“The first phase of the project will be completed in 2009, the second will be put on hold. But we expect to review it on a very regular basis because of the growth we are experiencing in new and existing markets.”
The existing plant had about two years’ production capacity if demand continued at its current pace. Commercial director Peter Banks added: “The team is always looking for extra volume, but when you invest £35m your focus increases by 10 notches.”
Mr Banks, who has spent 15 years building the Quorn brand at Marlow, was recently honoured with a unique special achievement award by Food From Britain - the food industry’s soon to be disbanded export agency. He said he regretted the Government’s decision to wind up the organisation. “|t is always sad to lose an opportunity to talk about what is a brilliant industry outside of the UK,” he said. Marlow’s parent company Premier Foods boosted its debt-reduction drive yesterday by revealing a £45m offer for its French frozen patisserie business. The group previously reported sales up 9% in 2008.
ON THE UP: Construction work continues on a third fermentation unit at Marlow Foods’ Belasis site
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