Heinz Wattie plans to shut three New Zealand factories. Photo / NZME
Food manufacturer Heinz Wattie’s plans to shut three New Zealand factories, affecting about 350 jobs.
The changes were part of the company’s shift to focus on its long-term strategy, it said.
The proposal would result in the closure of three manufacturing facilities located in Auckland, Christchurch and Dunedin.
“After careful consideration, the company is proposing to discontinue sale and production of frozen vegetables and Gregg’s coffee, as well as dips sold primarily under Mediterranean, Just Hummus and Good Taste Company brands,” it said.
These products would be phased out over the course of the year.
Packing would also cease at the associated frozen lines in King Street, Hastings.
About 350 roles were expected to be impacted because of the proposed site closures and other changes across the business.
Over recent years, the manufacturing environment in New Zealand had become increasingly difficult, the company said.
Heinz Wattie’s is a subsidiary of US-listed The Kraft Heinz Company.
“We are deeply aware of the impact this would have on our people, their families, our growers and suppliers, and the communities we have been part of for many years,” Heinz Wattie’s managing director Andrew Donegan said.
“These are people who have helped build this business over decades and our priority now is supporting them,” he said.
The decision to start the process was not taken lightly, the company said.
“Numerous alternatives and options were explored before reaching this phase,” Donegan said.
“It is a necessary step to position our company for the future.”
He said high inflation globally and “various industry challenges” have all placed ongoing pressure on the commercial performance of the business.
E tū union delegate Kathy Perrin, who has worked at Heinz Wattie’s for 46 years in different roles, said the impact on workers will be devastating.
“I am gutted for our workmates. Some are retirement age, paying high rents, living pay cheque to pay cheque,” Perrin said.
“The devastating financial and emotional impact on my colleagues cannot be overstated.
“The average length of service is around 30 years. There is nowhere else to go.”
Perrin said workers were disappointed with how Heinz Wattie’s handled the closures.
She said the company had also let down its long-serving seasonal workers.
“Seasonal workers who have worked here for over 20 years are being made redundant without financial compensation,” she said.
“They have been let down.
“The company should be making sure they receive compensation and that a fair process is followed supporting those who will be impacted by this change.”
E tū director Finn O’Dwyer-Cunliffe said the announced closures were a massive blow for workers and the wider communities.
“These workers have given decades of their lives to this company. For many, this is the only job they’ve known,” O’Dwyer-Cunliffe said.
“The impact on them and their families will be severe.”
Around 220 growers in the Canterbury region alone supply the Christchurch site.
The ripple effects of the closures would be felt across entire communities, O’Dwyer-Cunliffe said.
“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.
“The Government has been asleep at the wheel while local manufacturing collapses around the country.”
Founded by Sir James Wattie in 1934, Wattie’s is well-known for its tomato sauce, baked beans, spaghetti and a wide range of fruit and vegetable products.
According to accounts filed with the New Zealand Companies Office last year, Wattie’s New Zealand business paid out more to its suppliers and employees than it received in customer payments in its 2024 financial year.
Financial records showed H.J. Heinz Company (New Zealand) made losses over the past three years and took an impairment of more than $210 million in 2024.
It made a loss of $187.9m on the back of that impairment in the year to December 28, 2024, which compared with a $51.9m loss in 2023.
In 2022, the loss was $54.1m.
Payments to suppliers and employees during the 2024 year totalled $747.9m, more than the $738.3m it received from customers.
The company was left with cash and cash equivalents of $5.54m.
Jamie Gray is an Auckland-based journalist, covering the financial markets, the primary sector and energy. He joined the Herald in 2011.
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