A major supplier of plant-based and meat-free foods has collapsed, leaving supermarket giants Woolworths and Coles to face possible product shortages.
Queensland-based company Fenn Foods – which claimed to be the first certified carbon neutral, plant-based food producer in – entered liquidation on October 9.
Fenn Foods was launched in 2015 by Michelin star chef Alejandro Cancino and employed 32 staff.
Mr Cancino and his wife led the company’s recipe development, which focused on catering to vegan diets.
Fenn Foods merged with competitor All G Foods’ plant-based division in 2023 and stocked its Veef and Lovebuds at Woolworths and Coles.
Ken Whittingham and Mark Robinson of Fort Restructuring were appointed to oversee the liquidation, which stemmed from a dying interest in meat alternatives.
‘The meat-free and plant-based sector has gone through somewhat of a boom and then consolidation phase in recent years and there’s no doubt that Covid shutdowns impacted important wholesale and restaurant channels for producers,’ Mr Whinttingham told news.com.au.
Amid fears of product shortages, Gold Coast-based Smart Foods has since agreed to buy Fenn Foods’ major assets – including its plant, equipment, stock, Veef and Love Buds brand names, registered IPs, and intellectual property.
‘As one of the largest suppliers of plant-based and meat free products to major supermarkets in , there was a very real risk that consumers could have faced product shortages,’ Mr Whittingham said.
‘This combined with the fact we are dealing with stocks of perishable goods meant that we needed to move quickly to ensure the best possible outcome – with this transaction being completed within seven days of our appointment as liquidators, after discussions with several potential buyers.’
Smart Foods could also offer new positions to up to half of Fenn Foods’ former employees.
Chief executive Raghu Reddy hopes to expand the former Fenn Foods brands through more food service and retail channels and solidify its place in the plant-based market by streamlining operations, fostering key partnerships and focusing on innovation.
The liquidators are also working to find payouts for creditors and employee entitlements from Fenn Foods’ remaining assets.
Fenn Foods’ collapse follows that of another major food supplier, The Essential Ingredient, in September.
The company, which operated for 34 years, was best known for its specialty food brands.
South n dairy company Beston Global Food Company, which imported dairy products, also collapsed last month, leaving 160 employees in the lurch.