Plant-based food and drink moving in different directions
Nestle have announced they are withdrawing their Garden Gourmet brand (for the second time), along with Wunda (pea based dairy alternative) from the UK market, yet plant-based start-ups continue to dominate food sector campaigns on crowdfunding platforms.
Garden Gourmet has been successful elsewhere in Europe, but in signs that the meat-free market is becoming increasingly tough, is now being withdrawn as brand investment has not produced sales levels anticipated and Nestle want to focus resources on their core portfolio.
Wunda was launched into the dairy-free fixture in mid 2021 as a more appealing alternative to soya based drinks in particular, but managed to achieve less than 1% of the turnover of Alpro and Oatly combined.
Yet at the same time plant-based start-ups continue to attract interest and investment despite the cost of living crisis. Sustainability and health continue to capture the imagination of investors and consumers, with meat-free brand This raising over £8m, one of the biggest crowd rounds for a vegan brand.
It seems we can expect further consolidation in meat and dairy free fixtures in particular over the coming months, as retailers and suppliers take decisions on the best use of shelf space allocation and marketing resources. Start-ups will have to demonstrate a clear and wanted, and commercially attractive point of difference to have a real chance of success.