(qlmbusinessnews.com Tues, 12th Dec, 2023) London, UK —
“Vegan Giant VBites, Founded by Heather Mills, Faces Administration Amid Soaring Costs”
VBites, the vegan food venture established by Heather Mills, former wife of Sir Paul McCartney, has entered administration, attributing the collapse to escalating raw material costs and energy prices.
Founded by Ms Mills in 1993, VBites gained prominence for producing plant-based alternatives in the meat, fish, and dairy-free sectors. The company experienced growth as the demand for vegan products surged, culminating in the acquisition of supplier Redwood Wholefood in 2009. However, the business grappled with mounting costs and supply challenges.
Expressing her devastation at the collapse, Ms Mills acknowledged the dedication of her team, who she noted had invested “blood, sweat, and tears” into the business over three decades. Despite personally injecting “tens of millions of pounds” into the venture, she lamented that her efforts, along with those of her staff, were ultimately thwarted.
The downturn in sales of vegan food, often priced higher than competing meat or dairy alternatives, has been witnessed across the industry. In August, Beyond Meat, a supplier to McDonald's, reported a nearly one-third decline in sales over the preceding three months. Similarly, sausage maker Heck reduced its meat-free product range from ten to two in May, while Pret A Manger shuttered half of its vegetarian and vegan-only outlets in the past year.
According to the Vegan Society, despite challenges, approximately 700,000 vegans exist in the UK, and vegan food maintains a broader appeal, especially among vegetarians.
Administrators from Interpath Advisory assumed control on Monday after attempts to secure new funding for VBites fell through. The company, which operates from manufacturing sites in Peterlee, County Durham, and Corby, Northamptonshire, will continue to trade from the Peterlee site while administrators seek a buyer for the business and its assets.
Twenty-nine employees at the Peterlee site have been retained to facilitate ongoing operations, while twenty-five employees at the Corby site will fulfill outstanding orders. Regrettably, twenty-four employees across the business have been made redundant.
James Clark, joint administrator and managing director at Interpath Advisory, acknowledged VBites as a leading UK manufacturer of vegan food products but highlighted the broader industry trend, noting the impact of rising commodity and energy prices on companies within the food manufacturing sector.
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