The three brands will progressively disappear from UK supermarket shelves in the second quarter of this year.

Nestlé launched Wunda, a plant-based drinking milk made from split yellow peas, in the UK and Ireland in 2021, describing it as a versatile choice for people who want a plant-based drink that tastes closer to dairy.

The Garden Gourmet brand makes vegan ready meals and plant-based meat alternatives while Mezeast is a range of Middle Eastern-style seasonings, sauces, meal kits, spreads, and pastes.

Nestlé said it was not abandoning the plant-based category altogether and that many of its other core brands in the UK, such as the Maggi brand, and two meal kit brands that it acquired several years ago, Mindful Cook and Simply Chef, offered plant-based products.

Poor sales despite recent rebranding

Garden Gourmet is a well-established brand outside the UK and will continue to be available in other countries. It will also continue to be sold in the UK in foodservice outlets via Nestlé Professional.

When Wunda launched in 2021, Honza Dusanek, managing director for food and dairy at Nestlé UK and Ireland said: “Our aim with Wunda is to make plant-based milk alternatives an easier and more attractive choice for people who want milk that tastes closer to dairy but remains just as versatile.”

The dairy milk alternative could be cooked and frothed, like dairy milk. “We want Wunda to disrupt the market, to stand out and offer something different to what’s already on the shelves,” Dusanek added.

Despite rebranding Wunda milk in October last year, sales remained poor.

Has the plant-based market become too saturated?

Some commentators suggested Nestlé’s decision to axe the three plant-based brands in the UK were signs of a saturated market that is simultaneously being hit by rising costs and inflation. A growing number of players has increased competition while the war in Ukraine has meant higher prices for raw materials, energy, and transport for producers, suppliers, and manufacturers alike.

Even outside the UK, there are signs that all may not be well in the plant-based category. MorningStar Farms, a Kellogg Company brand that makes vegan and vegetarian food, reported a double-digit decline in revenue throughout most of 2022 and even plant-based heavyweights such as Beyond Meat, Impossible Foods, and Oatly announced plans to restructure and lay off staff to counter falling sales.

Alternative protein investment ‘still strong’, says GFI

Nevertheless, plant-based and animal-free advocacy group, the Good Food Institute (GFI), says that the long-term outlook for alternative protein investment is strong, despite volatile market conditions.

“As companies continue to develop new technologies, as well as scale and optimise production to improve the taste and affordability of products, sales will accelerate and spur additional investment—particularly when macroeconomic and market conditions normalise,” said Sharyn Murray, GFI investor engagement manager, in a statement.

According to GFI, investor appetite for alternative proteins is still strong. It conducted a survey of more than 100 investors active or interested in alternative proteins, which found that 99% said they were optimistic about the alternative protein industry over the long term while 45% said their investments in alternative proteins had not slowed down in 2022.