US: Heinz Leamington tomato growers to get $1.8m payout
The Leamington plant contributed to 200,000 Heinz tomatoes annually
H.J Heinz Co. has announced it will compensate 43 tomato growers that supplied its Leamington plant following last year's announcement of the plant's closure.
Growers supplied 200,000 tons of Heinz tomatoes annually. Production from three plants Heinz said it would close - in Leamington, Florence and Pocatello - will move to other Heinz plants in North America when the Leamington site closes on 27 June. At the time the closures were announced, Heinz said they were essential in maximising business efficiency and effectiveness.
A spokesperson for the company today (28 January) told just-food: "In recognition of the long standing partnership and mutual respect between our company and all 43 local tomato growers in the Leamington area, Heinz is pleased to confirm that the growers have unanimously accepted a goodwill payment by Heinz."
According to a report on CNBC, the compensation amount totals US$1.8m, but Heinz did not comment on this.
"Although the terms of the contract required no payment, Heinz felt that a goodwill payment would help offset costs incurred by some growers who had already begun to prepare for next year's tomato crop," he added.
He did not comment on whether growers for the other sites facing closure would be eligible for the same payout.
MarketLine's Company Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments reports offer a comprehensive breakdown of the organic and inorganic growth activity undertaken by an organi...
Heinz Foodservice is focused on sales and promotion of its branded condiments, sauces, soups and tomato products targeting full-service, quick-serve and non-commercial restaurants. The company offers ...
The principal strategy of Heinz México SA de CV involves targeting its sales towards the consumer foodservice industry and establishing successful alliances with large chained consumer foodservice ope...
Heinz was acquired in 2013 by 3G Capital and Berkshire Hathaway in a US$28 billion deal. The company will receive significantly greater resources to expand its presence in emerging markets where it ha...
- ConAgra Foods: what could happen next? - analysis
- Why Mars rice plan not just crop-ticking exercise
- Greencore's food-to-go focus paying dividends
- What could be benefit of US approval of GM salmon?
- How Danone aims to meet its 2020 objectives
- Hovis plans cuts amid anxiety over UK bread demand
- Aryzta regional CEO steps down
- "Serious" suitors lined up for Chicken of The Sea
- Unilever sets 2030 carbon positive goal
- PepsiCo to expand Frito-Lay plant in US