A major supplier of plant-based and meat-free foods has collapsed, leaving supermarket giants Woolworths and Coles facing potential product shortages.
Queensland-based Fenn Foods, which claimed to be Australia’s first certified carbon-neutral plant-based food producer, went into liquidation on 9 October.
Fenn Foods was launched in 2015 by Michelin-starred chef Alejandro Cancino and employed 32 people.
Cancino and his wife led the company’s recipe development, which focused on catering to vegan diets.
Fenn Foods merged with the plant-based division of competitor All G Foods in 2023 and stocked its Veef and Lovebuds in Woolworths and Coles.
Fort Restructuring’s Ken Whittingham and Mark Robinson were appointed to oversee the liquidation, which arose from a dying interest in meat alternatives.
“The meatless and plant-based sector has gone through something of a boom and then a consolidation phase in recent years and there is no doubt that the Covid lockdowns affected important wholesale and restaurant channels for producers,” Whittingham said . news.com.au.
Amid fears of product shortages, Gold Coast-based Smart Foods has agreed to buy Fenn Foods’ key assets, including its plant, equipment, shares, Veef and Love Buds brands, registered IP and intellectual property.
Queensland-based Fenn Foods went into liquidation last week. In the photo, the founders Paola and Alejandro Cancino.
Fenn Foods was a major supplier with products stocked in Woolworths and Coles.
“As one of the largest suppliers of plant-based and meat-free products to Australia’s major supermarkets, there was a very real risk that consumers would have faced product shortages,” Mr Whittingham said.
“This, combined with the fact that we are dealing with stock of perishable goods, meant that we needed to act quickly to ensure the best possible outcome; this transaction was completed within seven days of our appointment as liquidators, following discussions with a number of buyers potentials”.
Smart Foods could also offer new positions to up to half of former Fenn Foods employees.
CEO Raghu Reddy hopes to expand Fenn Foods’ legacy brands across more retail and foodservice channels and solidify its place in the plant-based market by streamlining operations, fostering key partnerships and focusing on innovation.
Liquidators are also working to find payments for creditors and employee rights from Fenn Foods’ remaining assets.
Gold Coast-based Smart Foods has agreed to buy Fenn Foods’ key assets, including its Veef and Love Buds brands.
The collapse of Fenn Foods 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 Australian dairy company Beston Global Food Company, which imported dairy products, also collapsed last month, leaving 160 employees in the lurch.
