Heinz Wattie’s has today advised its people that it will proceed with plans to close manufacturing sites in Christchurch, Dunedin and Auckland, as well as the frozen packing lines in Hastings. This will see a discontinuation of its frozen vegetables, coffee and dips businesses.
The announcement follows a formal consultation process, with the company seeking feedback from its people and representatives on the proposed changes, including the category exits associated with these sites.
Heinz Wattie’s Managing Director, Andrew Donegan, says the decision is necessary to strengthen the business so it can continue to manufacture and sell products in New Zealand.
“We appreciated the open and thoughtful dialogue during the consultation process. After careful consideration and analysis of proposed suggestions, we have reached the conclusion that closing these sites and exiting these categories is the only way forward for the long-term viability of the business. While change is needed, this is an incredibly difficult time for our employees and business,” says Donegan.
Today’s announcement will result in the loss of approximately 300 roles across impacted sites which includes some commercial roles. With site closures phased over the course of the year, final numbers will not be known for some time as redeployment opportunities continue to be explored.
“The majority of those impacted are long-term experienced and skilled employees who would be sought-after candidates for many employers”, Donegan said.
“Our focus is on supporting those who are affected with redundancy packages, employee counselling, career transition services and redeployment where possible,” says Donegan.
In Hastings, almost 50 people from the frozen packing lines will be redeployed, with some of those being retrained. This means that they will stay with the business.
Wattie’s will remain an employer of more than 1,200 people in New Zealand. Its Hawke’s Bay sites will continue to manufacture more than 800 SKUs and sell products across 11 categories, including frozen meals and canned fruits and vegetables. Exports will continue to Australia, Japan, the Pacific Islands and other markets around the world.
Partnerships with growers for key crops such as tomatoes, peaches, corn and beetroot will continue, ensuring Wattie’s remains a staple in New Zealand households.
ABOUT HEINZ WATTIE’S
A subsidiary of The Kraft Heinz Company, Heinz Wattie’s is a major food producer with a proud New Zealand heritage. Founded by Sir James Wattie in 1934, Wattie’s is home to the nation’s favourite tomato sauce, baked beans, spaghetti and a wide range of fruit and vegetable products and meals enjoyed by millions of Kiwis up and down the country. Learn more about New Zealand’s best-loved food brand, by visiting www.watties.co.nz
NOTES
Rationale for change
- The decision was driven by an extensive review of the New Zealand business and not made with reference to any broader company matters.
- It reflects challenging economic conditions currently facing New Zealand, particularly the manufacturing sector. Inflation in relation to raw materials, energy and logistics costs along with decreased sales volumes were the key drivers
- Wattie’s has not been able to pass on all the input costs to consumers, particularly in the current climate with the prevalence of cheaper product choices.
- This has meant that these categories and sites have consistently been in a loss-making position over the last few years.
- The categories which the company will exit are frozen vegetables, Gregg’s coffee and dips and pates.
Details of impacted sites
The La Bonne Cuisine factory in Auckland will close.
Wattie’s frozen vegetable factory in Christchurch will close
Gregg’s coffee factory in Dunedin will close
The timing of the closures will likely be announced at the end of April.
