Jobs boost as Premier takes over rivals

AN influx of new jobs is in the pipeline for Carterton with news this week that Premier Bacon Company has bought Medallion Foods of Napier.
Barry Reid, who jointly owns Premier along with his brother Noel, said he couldn't put an accurate figure on the jobs to be gained "simply because at this stage I don't know, but this does mean a considerable number of jobs will come to Wairarapa".
The takeover means that Premier that already employs about 140 people in New Zealand ? mostly in Wairarapa ? is likely to become the biggest producer of pre-packaged bacon in the country.
Medallion was purchased for an undisclosed sum and in Hawke's Bay employed up to 70 people.
It was one of the leading brands in the region's food processing industry but as from September 1 its operations will be progressively transferred to Premier's Carterton factory.
Mr Reid said some new staff members are being employed "right now" for the Wairarapa expansion but the transition period would extend until February 28.
One of the key factors that made the takeover of Medallion possible was that Premier has spent a lot of money on new buildings and equipment in Carterton
Mr Reid said that was "fortuitous" and without the injection of capital the factory could not have absorbed Medallion's business.
"We have installed up-to-the-minute plant, imported from Germany," he said.
"Each of the automated bacon and ham lines cost us $1.6 million."
Mr Reid said until now although Premier and Medallion were in the same business they had never really competed with each other.
"Premier has always been at the premium end of the bacon and ham industry whereas Medallion has been at the value end."
News of the demise of Medallion came as a blow to the company's Hawke's Bay workers who were told of the decision late on Monday.
Managing director Mike Geddis said while the deal was a good industry outcome, he recognised the impact the sale and eventual transfer of the business would have on staff.
Once the takeover is complete Medallion's Onekawa site would go on the market.
Premier Bacon Company came into being in 1991 when Noel and Elaine Reid re-opened the old Mi-Ere Bacon factory in Moreton Road.
Mi-Ere had been a subsidiary of Huttons Kiwi Ltd but had closed down three months earlier with the simultaneous closure of Huttons factory in Porirua.
Apart from pre-packaged bacon and ham, Premier produces saveloys and a range of other smallgoods.