Swiss conglomerate Nestle announced on 22 June that it will lay off 80 employees at its plant in Krupka, north Czechia, citing weaker-than-expected demand for plant-based meat products in Europe. The decision affects around 20% of the factory’s workforce.

The facility, which produces plant-based alternatives to meat under the Garden Gourmet brand, had previously been part of Nestle’s post-pandemic growth strategy. However, Nestle said the European market for vegan and vegetarian meat has failed to meet forecasts, prompting a scale-back in production.

Vegan meat stumbles in popularity stakes

The move reflects a broader trend in the plant-based protein sector. According to GFI Europe, sales of meat alternatives in key European markets have plateaued or declined since 2022. Nestle previously divested its US-based Sweet Earth Foods and cut back Garden Gourmet ranges in Germany and France.

Nestle spokeswoman Tereza Prochazkova said demand had not materialised as anticipated. “The European market for plant-based alternatives is growing slower than we expected,” she said.

The Krupka site will remain operational, but output and staffing will be reduced from September. The Swiss-headquartered company said it remains committed to its plant-based product line but will adjust to market realities.

Local impact manageable, officials say

The Czech Labour Office regional director Martina Becvarova said unemployment in the Teplice district stood at 5.7% in May, and that half of the laid-off employees are expected to find new work locally. Nestle has committed to retraining and job placement services on-site in coordination with the local authorities.

“We hope to reintegrate at least half of those laid off back into the local labour market," Prochazkova said.

Industry-wide retreat from alternative proteins

The Krupka layoffs reflect broader retrenchment across the plant-based sector. In 2024, the UK's Unilever announced plans to divest its subsidiary company The Vegetarian Butcher, while Philippine multinational Monde Nissin has reported significant losses from its Quorn line.

Nestle has already downsized its Sweet Earth operations in North America and reoriented its Garden Gourmet offering toward ready meals, spreads and "flexitarian" products.

Czech policy context and consumer trends

The Krupka plant was developed with a CZK 1.4bn (EUR 56.4mn) investment in 2022. Although interest in plant-based products has grown in Czechia, adoption remains limited. In 2023, the Czech Agriculture Ministry dropped a proposal to ban meat-related terms from plant-based packaging after industry consultations.

The Czech Chamber of Commerce said on 22 June that the Nestle cuts should be viewed in the context of changing consumer priorities amid inflation and a shift toward simpler food products.