Food company Heinz Wattie’s plans to shutter three factories across New Zealand and stop production of certain product ranges as part of its long-term strategy.
The company has proposed several changes to certain areas of its New Zealand business, including discontinuing the sale and production of frozen vegetables and Gregg’s coffee, as well as dips sold under the Mediterranean, Just Hummus and Good Taste Company brands. The firm plans to phase out these products over the course of the year.
The move would result in the closure of three manufacturing facilities in Auckland, Christchurch and Dunedin. Packing would also cease at the associated frozen lines in King Street, Hastings.
The company expects the proposed site closures and changes to impact 350 jobs. However, the final number will be confirmed after consideration of redeployment opportunities.
The discontinuation of ranges will also impact suppliers, including more than 200 contracted growers around the country.
“The decision to start this process was not taken lightly,” said Andrew Donegan, Heinz Wattie’s MD. “Numerous alternatives and options were explored before reaching this phase. It is a necessary step to position our company for the future.”
The company said the manufacturing environment in New Zealand has become increasingly difficult in recent years. It added that global inflation and industry challenges also put pressure on its performance.
Massive blow
E tū director Finn O’Dwyer-Cunliffe said the closures are a massive blow for workers, their families, and the wider communities that depend on these jobs.
“This is part of an unfortunately familiar pattern of local manufacturing shutting down across Aotearoa. We’ve seen it with Carter Holt Harvey at Eves Valley, Sealord in Nelson, Kinleith Pulp and Paper, and now Heinz Wattie’s.
“It’s a trend that is deeply damaging to workers, to communities, and to the country,” he continued.
O’Dwyer-Cunliffe says Aotearoa should be producing more food locally, not less, adding that these market failures demand a clearer response from the government.
The union will fight to ensure every affected worker gets a fair deal during the consultation with the company.
“Heinz Wattie’s talks about generous redundancy packages, but seasonal workers who have given years to this company could be made redundant without compensation. That is not acceptable,” the union director stressed.
A subsidiary of The Kraft Heinz Company, Heinz Wattie’s is a major food producer with a New Zealand heritage, dating back to 1934. The company is known for its tomato sauce, baked beans, spaghetti and a wide range of fruit and vegetable products and meals.
