Maple Leaf Foods is scaling back its plans for its plant proteins business because its recent analysis indicates growth will be less than previously anticipated.
The company is in the midst of building one of the largest plant-proteins facilities in North America at Shelbyville, Indiana. The company said it would cost $310 million US when the plans were announced two years ago, but supply-chain and COVID-19 labour shortages may have escalated the costs since then.
Michael McCain, the president and chief executive officer, said “we now believe the future will provide steady and attractive category growth rates between 10 to 15 per cent” and we will revise our investment levels accordingly.
He also said in a letter to shareholders that the meat protein business, which accounts for 9 6 per cent of revenues, “delivered impressive topline results in 2021.”