ICSM News: trouble in the vegan food sector as Heath Mills’ VBites goes in to administration after a string of vegan firms crash this year
By Harry Mottram: In 2021 vegan food firm Meatless Farm was selling millions of pounds worth of plant-based meat substitutes but in the summer they fell into administration. This week Heath Mill’s vegan food business VBites collapsed into administration.
She has made this statement on her website: “With great regret, I am sorry to announce that after 30 years of pioneering plant based production and innovation in the meat-free, fish-free and dairy-free sectors, VBites Foods Ltd, a company very dear to my heart, is entering into administration this week. This is extremely distressing for me on a personal level but also for my wonderfully loyal and hard-working staff.”
In an extended post she said her team had shed ‘blood, sweat and tears’ and keep the business afloat a difficult market place had made it a struggle to continue. The blame was partly aimed at mis-information from the meat and dairy industries she said, along with big business moving into the sector.
Ian Carrotte of ICSM said it was a sad day when any business failed – especially one that set such high ideals for itself. He said: “Reading between the lines in the Vbite statement it looks like a classic case of cash flow, a highly competitive market and no doubt debt. The firm took over Redwood Wholefood back in 2009 but with inflation and high interest rates plus declining sales things look bleak.”
The firm began in 1993 as sales of vegan alternatives were on the rise but the market has apparently reached a plateau. The Financial Times has cited an overall economic slowdown that’s hit all many food and beverage sectors – consumers tend to cut back on novelty or expensive products. They pointed to the collapse in the share price of USA based Beyond Meat and UK firms Nestle, Oatly, Innocent Drinks and Heck all trimming back on their vegan food and drink range due to a fall in demand.
Also, the the meat alternative supplier Plant and Bean entered administration blaming the problems on soaring costs and hikes in fuel and energy prices with a loss of 100 jobs. Vbites have two plants in England and 24 staff have been made redundant. Vegan Kind went bust last year, while several vegan restaurants have also hit the buffers including Harmonium in Scotland, Vurger, Donner Summer and V Rev have all shut up shop for good in the last 12 months. And even Pret a mange has closed its Veggie Pret shops this year.
With around 700,000 consumers identifying as Vegan in the UK clearly the market is not huge – but large enough for those with sound finances to survive. For those who follow the fortunes of celebrities they will see it ironic that the late wife of Paul McCartney – Linda McCartney died in 1996 – who set up frozen vegetarian foods as Linda McCartney Foods – is still going strong despite the slight drop in sales this year as the cost of living crisis hits. Heather Mills is the Beatles’ musician’s second wife who he divorced in 2008. So far his third wife Nancy Shevell has shown no interest in establishing a food business but her family business New England Motor Freight in the USA went bust in 2019.
Ian Carrotte of ICSM said although the vegan sector is niche - when any firm closes due to trading problems it is not only the staff and customers who lose out it is their suppliers who frequently don't get paid.
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