Interpath to oversee meat-alternative VBites administration

VBites has become the latest alternative-protein firm to collapse in the UK market. Administrators have been appointed from Interpath Advisory, with 24 jobs already lost.

Declining purchases of meat and dairy products has seen prices in the sector plummet in the last year. Partially this has been because a growing number of people are making a concerted effort to consumer fewer animal-derived products, in the light of the climate crisis, and concerns around animal welfare. But a number have also been put off by previous spikes in costs, which had made it impossible to continue consumption at the same rate amid the cost-of-living crisis.

For some time, researchers have suggested that the same ethical concerns pushing people away from meat and animal products would see them create a huge, multi-billion industry for plant-based meat substitutes. However, a mounting trend through 2023 seems to have shown that this is far from a foregone conclusion – with the premium pricing of the produce (often more expensive than actual meat) meaning it has struggled to make the most of the opportunities provided by the current economic environment.

Several notable firms collapsed in the alternative-proteins sector in the last year. Beyond Meat’s weak sales led some commentators to conclude “peak veganism” was upon the market, and predict an end of plant-based meats – while the demise of UK firms such as The Meatless Farm Co., Plant & Bean and LoveSeitan added fuel to the fire.

The latest meatless-meat firm to fall victim to the trend is VBites – a company founded in 1993 as Redwood Wholefoods, and rebranded by Heather Mills, who purchased it in 2009. The business woman and animal rights activist said she was devastated by the collapse, having personally invested "tens of millions of pounds into the business" and offered "every solution I feasibly could to keep it going”.

VBites – which produces alternatives to meat, fish and dairy from two manufacturing sites, in Peterlee, County Durham, and Corby, Northamptonshire – had reportedly been suffering from cashflow problems and a “softening” in consumer demand. It had sold a 25% stake in the company to Pfeifer & Langen late in 2021, with the Cologne-based business becoming a supplier of pea and other plant-based proteins to its operations. However, this was not enough to help insulate it from spiralling costs in the last two years.

Professionals from Interpath Advisory, James Clark and Howard Smith, were appointed to oversee the administration process. Upon the appointment, they issued a statement that the company had recently seen “increased pressure on cashflow due to the impact of rising raw material costs and energy prices”.

Interpath confirmed that 24 employees across the company had already been made redundant. Meanwhile, VBites’ Peterlee facility will remain open as the administrators seek a buyer for the VBites business and assets, with 29 staff staying on for the time being. A further 25 workers at Corby have been retained to fulfil orders.

Clark noted, “Our immediate priority is to provide support and assistance to those employees impacted by redundancy, as well as seeking a buyer for the business and its assets. We would encourage any interested parties to make contact with us at the earliest opportunity.”