300 new jobs as Quorn rides out Brexit fears
THE boss of Quorn Foods has backed the firm to ride out any Brexit disruption to its European business as he unveiled plans to create 300 jobs and invest £150million in Britain.
Chief executive Kevin Brennan said he is confident a growing appetite for the meat substitute in the US, Australia and Asia will keep the business on track if confronted by tough trading across the remaining EU 27 nations.
Mr Brennan said the food producer could also cope with the introduction of a European Union trade tariff following Brexit, as long as it is in line with the single-digit charges the company faces when trading in the US and Australia.
His comments came as he pledged to create hundreds of jobs in the North over five years through an investment drive at its manufacturing operation in Billingham, Teesside.
Mr Brennan said the company had not sought any Brexit assurances from the Government before committing to the investment but is keeping a close eye on how the divorce talks unfold.
He said: “We are running a company where we believe we can quadruple the business to $1billion (£770million).
“Europe plays a part in that, but it isn’t essential to achieving that.
“The UK business is still a business with incredibly strong growth. The US is a business with enormous scale potential to us, alongside Australia and Asia.
“We are still taking a positive view on commercial investment in Europe.
“We continue to invest significantly into Germany, Italy and the Nordics.
But equally, we know that our category is growing everywhere in the world... if Europe gets less attractive, we can divert our growth to other places.
“Hard Brexit tariffs would not be great for us but it wouldn’t be the end of the world.”
UK sales for Quorn, which sells meat-free alternatives to sausages, mince and burgers, grew 15 per cent in the first half of the year.
Global growth rose 19 per cent over the period, while European sales grew by 29 per cent, US sales were up 40 per cent and Asian and Australian sales climbed 35 per cent respectively.
Mr Brennan said Quorn has bucked challenging market conditions and is achieving double-digit growth in most British retailers, adding “most food companies would be happy if they had any growth at all in the UK”.
While the firm has managed to shield customers from Brexit-induced price rises following sterling’s collapse, he could not guarantee costs will not rise in future.
He said the company is “broadly neutral” to the falling pound, with rising import prices being countered by improving export sales.
Quorn was bought by Exponent Private Equity and Intermediate Capital Group from Bisto maker Premier Foods for £205million in 2011, before they sold four years later to Philippine food giant Monde Nissin.
The company employs 650 staff and is based in Stokesley, North Yorkshire.