Bel Group to Shutter Plant-Based Cheese Brand Nurishh After Failing to Turn A Profit

French dairy giant Bel Group has announced that it will discontinue its Nurishh brand of vegan cheese by the end of the year after failing to capture enough consumers.

Despite its efforts to expand its plant-based cheese offering, French dairy leader Bel Group has decided to shutter its only fully vegan business, Nurishh.

The company will withdraw the brand’s dairy-free mozzarella, feta and other cheeses from the market by the end of 2025, citing a failure to attract new consumers and become profitable.

As a direct consequence of the Nurishh decision, Bel is also closing its production factory in Saint-Nazaire, which is expected to impact around 30 employees, who reportedly began a strike following the announcement.

Why Bel Group is discontinuing Nurishh

Nurishh was introduced in 2021, a year after Bel acquired local startup All in Foods and its Nature & Moi brand. The deal involved the Saint-Nezaire facility, and was part of the dairy giant’s ambition to diversify its plant-based business.

Sold in 14 countries across Europe, North America, and the Middle East, Nurishh’s cheeses include alternatives to Cheddar, mozzarella, Camembert and feta. They’re made from either coconut or sunflower oil, and are free from soy and gluten.

In 2022, Bel teamed up with precision fermentation pioneer Perfect Day to use its animal-free whey protein in a line of Nurishh cream cheeses in the US. Social media posts suggest the products were no longer on shelves by 2023 ,but there has been no official annoucement from the company.

But the company admitted that it has failed to capture the attention of enough customers over the years. Nurishh only represents 1% of the retail market for vegan cheese, compared to the 22% share of its biggest competitor, Violife.

“By arriving second in the market, we have not succeeded in differentiating ourselves enough to secure our clients’ listing and attract new consumers,” the dairy group told Just Food.

The company had attempted to turn around Nurishh’s fortunes with a brand refresh that painted its cheeses as desirable and a source of pleasure, in contrast with the usual criticisms of plant-based alternatives as bland and unappealing.

That still failed to move the needle, forcing Bel’s hand. “Despite the commitment and the hard work of all teams over the past five years, and despite the numerous investments made with All in Foods, Nurishh has not succeeded in establishing a profitable and sustainable business,” the company said.

Bel continues to invest in vegan cheese amid M&As

The discontinuation of Nurishh means Bel will now focus on its three core brands: The Laughing Cow, Babybel, and Boursin. Each of these brands has dairy-free offerings, which the company plans to expand over the coming months, signalling that its commitment to plant-based cheese hasn’t ended.

In November, the company linked up with agrifood producer Avril, probiotic manufacturer Lallemand, and foodservice consultant Protial on a three-year project to develop better vegan cheese. The effort is backed by a €9M investment, in part by the French government.

The entities will work on creating minimally processed vegan cheese through advanced fermentation and ageing techniques, with an added focus on nutrition. “Our research focuses on alternative ingredients, including plant-based proteins from crops like peas, chickpeas, and fava beans and some others, as well as fermentation-derived proteins, which offer nutritional quality comparable to dairy,” Bel told Green Queen after the announcement.

The resulting products will be rolled out under Bel’s existing brands, as it works towards its goal of generating 50% of sales from plant-based alternatives and fruit-based offerings by 2050.

Non-dairy cheese now makes up 3.6% of Europe’s plant-based market, and was the fastest-growing vegan category in France, where its sales grew by 34% in 2023. That said, consumers remain unsatisfied with the taste and texture of these alternatives. According to a survey of over 7,800 Europeans, more than one in five who have tasted fermented vegan cheese don’t consume it regularly.

It has led many brands to rethink their business or close it altogether. Before Bel decided to do the latter with Nurishh, Dutch startup Willicroft wound down after failing to secure enough investment. Others have looked towards exits and acquisitions.

France’s Jay&Joy bought fellow vegan artisanal cheese maker Les Nouveaux Affineurs earlier this year, while US dairy-free cheese startup Vertage Foods was snapped up by plant-based firm Misha’s Inc. And in late 2023, UK-based The Compleat Food Group (formerly Winterbotham Darby) took over vegan cheesemaker Palace Culture.