Meatless market mushrooms

HEADNOTE

Meatless doesn't have to mean soy-- based, according to Quorn Food's new meat alternative, scheduled to launch in the U.S. at the end of the year.

The latest fad brought over from Europe isn't in fashion,

it's in frozen foods, sort of a pre-a-- manger, sans le meat and le soy. Quorn Foods Inc., a U.K. manufacturer, is scheduled to launch its meatless food products, which are not soy-based as other meat-free products are, in the United States pending Food and Drug Administration approval this July. A major seller in Europe for the past 16 years, Quorn has a following of more than 20 million consumers.

"U.S. consumers have not seen anything like Quorn foods before," says David Wilson, general manager, Quorn Foods, Inc. "Consumers are hungry for this type of product--a food choice that is enjoyable, healthful and convenient. Quorn is extremely popular in Europe, and we predict similar success in the United States. Given past experience, we see Quorn foods becoming a staple within the family diet, like chicken, beef or pasta"

This new food product is made from a myco-protein, an all-natural vegetable protein in the mushroom family that is grown, harvested and prepared into a full line of meatless meals and foods. The company says that Quorn is a good source of protein and fiber, and is lower in fat, especially saturated fat, than its meat counterparts. In comparison, the Quorn ingredients contain almost as much protein per ounce as an egg, more fiber than a baked potato, two-thirds the fat of a skinless chicken breast, and zero cholesterol. Besides this main ingredient, other familiar ingredients such as vegetable flavorings and a small amount of egg white are used to prepare Quorn foods, giving them their meat-like texture.

According to Wilson, after quantitative research, studies showed that consumers were looking for more of a firmer meat-free product. "The key difference is that our products have a real bite," he says. "Soy is soft; Quorn has a meaty texture." Wilson says soy companies are trying to mask the beany soy-flavor with additives. Quorn's base product is bland, with no beany flavor. "The taste and texture are different," he says.

Conquering the Category

Admitting that they want to be number one in the U.S., Quorn Foods is looking to revolutionize the meatless category. Wilson, who came from Keebler in 1993 to join Quorn Foods, says the meatless market was only a few million dollars then. He says meat-free is now a $350 million market, and could see it easily becoming a billion dollar category. Wilson adds that he suspects there is a half billion-dollar market in the U.K. alone for Quorn foods.

Quorn has enjoyed success in Europe as its top-selling meatless food with $135 million in retail sales for 2000 and projected sales of $150 million for 2001 as compared to Morning Star's 2000 sales of $132.6 million, Gardenburger's 2000 sales of $53 million, and Boca Burger's 2000 sales of $47.7 million (figures according to ACNielsen ended 12/31/00).

More than a half billion portions of Quorn have been sold, with more than 150 million portions sold annually.

Awaiting FDA approval in July, the brand is looking to begin its marketing campaign in early 2002, and launch an initial line of frozen entrees in the United States. The company will begin with a regional rollout, than go national soon after.

The frozen line will initially include chicken-style nuggets, patties and cutlets, in addition to two entrees developed exclusively for the U.S. market: lasagna and fettuccine Alfredo. Quorn will also be available in ingredient form as beef-style grounds and chicken-- style tenders, packaged in bags. The line will expand later on to include additional entrees, sausages, burgers and cold cuts. Once the full line is on the market, it will be a 50/50 split between frozen and refrigerated products.

"We have high hopes and bold goals for Quorn foods in the United States," says Wilson. "We believe very strongly in the uniqueness of the brand. The variety and quality of the products in the line can stimulate consumer interest in this fast-- growing sector. We will support the launch with a fully-integrated, multi-million dollar marketing program to generate consumer excitement"

Marketing for the brand is set to include print, television and outdoor advertising. It will also be supported by in-store sampling, consumer and trade events, and Web-based exposure. Wilson says that the television ads will begin once the distribution base is in place.

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A Learning Process

The company expects a certain amount of skepticism at first, but after numerous in-store demos teaching consumers about the product, they expect Quorn to be as big as it is in Europe. "There's definitely a learning process," says Wilson.

Building on the enormous current meat-free market in the U.S., Wilson says the new sector will be a major market for the company. "We've got to fish where the fish are.

With the FDA approval pending, Wilson says meetings already have been set up with mass merchandisers and there is much interest from U.S. supermarkets. Company executives have been out in the market for the past 18 months doing a "heads up". The company is currently securing manufacturers and retailers to partner with in the U.S. and is speaking with third-party companies as potential partners to assist with the launch of the new product line.

Quorn products are primarily available in the U.K., Sweden and Belgium, are expanding into France this summer in Carrefour supermarkets, and are looking for other European markets.

The company sees the U.S. demographic mainly being upscale, urban, well-educated females 25-55 years old. Wilson describes the women as "superwomen" with working lifestyles, who want to eat healthy and want their families to eat healthy as well. However, Quorn Foods is attempting to appeal to all consumers, non-meat-eating and otherwise.

"We're also looking for the red-- meat-eating Texan. We're going to convert them," proclaims Wilson.