Heinz Wattie’s, a subsidiary of the US-based Kraft Heinz Company, is set to shut down several factories across New Zealand, potentially affecting around 350 jobs, as reported by a local union.
On March 11, the E tū trade union announced that the company plans to close facilities in Auckland, Christchurch, and Dunedin, while also ceasing packing operations for its frozen food lines in Hastings. This decision aligns with ongoing trends in the food and beverage industry, where manufacturers are grappling with shifting market dynamics.
The proposed closures will mark the end of production for Wattie’s frozen vegetables, as well as Gregg’s coffee and dips marketed under brands such as Mediterranean, Just Hummus, and Good Taste Company. E tū made it clear that these products will not be transferred to another manufacturer.
Kathy Perrin, an E tū representative with 46 years at Heinz Wattie’s, expressed her grave concern, calling the move “devastating.” She stated, “I am gutted for our workmates. Some are retirement age, paying high rents, living pay cheque to pay cheque,” underscoring the emotional and financial toll on employees, many of whom have dedicated around 30 years to the company.
In a statement released on the Scoop NZ website, Heinz Wattie’s managing director Andrew Donegan acknowledged the difficulty of the decision. He noted, “The decision to start this process was not taken lightly. Numerous alternatives and options were explored before reaching this phase. It is a necessary step to position our company for the future.”
Additionally, the company cited increasingly challenging operating conditions for manufacturers in New Zealand in recent years, attributing this to global inflation and various industry challenges that have strained profitability.
Financial records lodged with the New Zealand Companies Office reveal that HJ Heinz Company (New Zealand), the parent company of Heinz Wattie’s, has been reporting losses for the past three years. For the year ending December 28, 2024, the company reported a total comprehensive income loss of NZ$187.8 million (approximately $111.1 million), compared to losses of NZ$51.8 million in 2023 and NZ$54.1 million in 2022. Furthermore, an impairment charge exceeding NZ$210.5 million was recorded in 2024.
