My MBA Journey: Heather Mills Vegan Food Company Files for Administration

Last Updated on December 12, 2023 by Robert C. Hoopes

Heather Mills’ vegan food company, VBites, has recently taken a hit as it entered administration. The collapse has been attributed to a combination of rising raw material costs and energy prices, dealing a blow to the business. VBites, which was established in 1993, specialized in producing plant-based alternatives in the meat, fish, and dairy-free sectors. The company experienced significant growth as the demand for vegan products soared, even acquiring supplier Redwood Wholefood in 2009.

However, the company’s success was short-lived, as it faced challenges with mounting costs and supply issues. Heather Mills, the founder of VBites, expressed her devastation regarding the collapse and commended her team for their dedication. It is worth noting that Mills had personally invested enormous amounts of money, “tens of millions of pounds,” into the business.

The decline of VBites is not isolated, as the broader vegan food sector has been grappling with hurdles. Shoppers are particularly impacted by higher food prices, leading to drops in sales for companies like Beyond Meat and sausage maker Heck. Even Pret A Manger has closed half of its vegetarian and vegan-only outlets.

Nevertheless, despite these challenges, vegan food remains popular, particularly among vegetarians. Surprisingly, the UK boasts around 700,000 individuals who identify as vegan.

To ensure the future of VBites, administrators from Interpath Advisory have been appointed to seek out potential buyers for the company. In the meantime, VBites will continue to operate from its Peterlee site while the search is underway. The Peterlee site currently employs 29 individuals, while the Corby site has 25 employees who will remain unaffected. Unfortunately, 24 employees across the company have been made redundant due to the collapse.

The collapse of VBites serves as a reminder that even successful businesses can face difficulties. As the vegan food industry grapples with rising costs and supply issues, it will be essential for companies to adapt and find sustainable solutions to thrive in an ever-changing market.