Gregg's coffee factory in line for closure under new proposal

The Dunedin Gregg's coffee factory is in line for closure under a new proposal. Photo: Gerard O...
The Dunedin Gregg's coffee factory is in line for closure under a new proposal. Photo: Gerard O'Brien
Dunedin's Gregg's coffee factory is in line for closure under proposed changes from its parent company.

Heinz Wattie's Limited today announced the proposal to discontinue the sale of Gregg's coffee, frozen vegetables and a variety of dips, as part of a shift to focus on its long-term strategy.

The proposal would result in the closure of the Dunedin manufacturing facility, Heinz Wattie's said in a press release.

The facilities in Auckland and Christchurch would also be closed, while packing would cease at the associated frozen lines in Hastings.

A consultation process, beginning today and finishing on March 25, will include the review of redeployment opportunities.

The company declined to reveal to the Otago Daily Times how many roles would be impacted in Dunedin.

However, about 350 roles across New Zealand were expected to be impacted as a result of the proposed closures and other changes across the business, the press release said.

The final number was yet to be confirmed.

The press release said redundancy packages, career transition and outplacement services, and wellbeing support would be offered to employees.

"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.

"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."

The press releases said the manufacturing environment in New Zealand had become increasingly difficult over recent years, citing globally high inflation and various industry challenges.

- Allied Media

 

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