Kraft Heinz is planning to close three factories in New Zealand, in a move that could impact around 350 jobs, according to a local union.
In a statement today (11 March), local trade union E tū said the company intends to shut sites in Auckland, Christchurch and Dunedin, and end packing on its frozen lines in Hastings.
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The proposed closures would bring production of Wattie’s frozen vegetables to an end, alongside Gregg’s coffee, as well as dips sold under the Mediterranean, Just Hummus and Good Taste Company brands.
E tū said the products would not be sold on or transferred to another manufacturer.
Kathy Perrin, an E tū delegate who has worked at the local Heinz Wattie’s subsidiary for 46 years, described the plan as “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. We’re all disappointed with how Heinz Wattie’s have handled this.”
In a statement published on the Scoop NZ website, Heinz Wattie’s said operating conditions for manufacturers in New Zealand have become “increasingly difficult” in recent years.
“Globally high inflation and various industry challenges have all placed ongoing pressure on the commercial performance of the business,” it said.
Just Food has contacted the business separately for comment.
Heinz Wattie’s managing director Andrew Donegan added: “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.”
Accounts lodged with the New Zealand Companies Office show HJ Heinz Company (New Zealand), the owner of Heinz Wattie’s, has been loss-making for the past three years.
It reported a NZ$187.8m ($111.1m) loss in “total comprehensive income” for the year ended 28 December 2024, versus a NZ$51.8m loss in 2023 and a NZ$54.1m loss in 2022.
The group also booked an impairment charge of more than NZ$210.5m in 2024.
