Nestlé has revealed it will lay off 80 workers at its Krupka plant in the Czech Republic amid weakening demand for plant-based meat products.
The job cuts – approximately one fifth of the Krupka facility’s 400-strong workforce – is a response to a slowdown in consumer interest in plant-based meat alternatives.
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The layoffs are scheduled to take place from September following employee notice periods.
A Nestlé spokesperson said “the current market situation in the plant-based sector is unfavourable”.
The spokesperson added: “We deeply regret the current situation. Unfortunately, the demand for plant-based products does not reflect our original expectations, and we are also facing slower market growth than anticipated in the post-Covid years. However, we are convinced that the plant-based food category has a place among consumers in the Czech Republic and Czech consumers will not be affected in terms of product availability or selection by this situation.”
As demand for plant-based meat has fallen below market expectations, Nestlé has sought to revise its position in the sector.
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By GlobalDataIn 2023, Nestlé pulled its Garden Gourmet meat-free and Wunda alt-dairy brands from sale in the retail sector in the UK and Ireland.
The Swiss giant has a plant-based meat factory in the Serbian town of Surčin, which it opened last year.
In markets in North America and Europe, the plant-based meat category has not grown to the size its proponents had hoped amid some consumer pushback about the quality and price of products.
Last month, Tesco cast doubt on whether the UK’s largest supermarket chain will achieve its 300% growth target for plant-based meat amid a slowing of the category in the country.
Philippines-based Monde Nissin has seen sales and profits at Quorn, which it acquired in 2015, come under pressure in recent quarters, hit in part by slowing demand for meat-free products.
Asked how Nestlé views the prospects of the plant-based meat category, the company said today (23 June): “We recognise the need to reposition our portfolio to resonate with evolving consumer demand in this space. Furthermore, we are now prioritising those brands in this space that have more potential.”
