Maple Leaf Foods officials said the company is reassessing its investment in plant-based protein after sales declined by 6.6 per cent in the third quarter and by 12.4 per cent when comparing the first three quarters of this year with last.
Maple Leaf has invested more than $1 billion in plant-based foods, both in the purchase of two companies in the United States and construction of a $310-million US plant in Indiana. At 230,000 square feet, it is the biggest of its kind in North America to make Lightlife burgers and related plant-based protein products.
Chief executive officer and president Michael McCain said the investments over the last four years have been “well calculated” and “well executed.”
“[W]e have always been prepared to re-examine that investment thesis if circumstances change,” McCain said in a news release.
“Given current category performance, such a review is underway, which will either affirm or adjust our strategies and investment thesis going forward."
Maple Leaf’s meat sales increased by 13.4 per cent to $1.15 billion on higher fresh pork and poultry prices, helping to offset the poor performance in plant-based and to push total company sales in the quarter to $1.19 billion from C$1.06 billion.
But third-quarter profit declined by $66 to $44.5 million.
