A Dunedin icon is set to disappear from the landscape.
Dunedin’s Gregg’s coffee factory is in line for closure under proposed changes from its parent company.
It has been part of the city since 1862, when Irish-born William Gregg established the coffee and spice manufacturing business.
Heinz Wattie’s Ltd yesterday 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.
Dunedin Mayor Sophie Barker said yesterday she was shocked by the news.
"It’s come like a bolt from the blue.
"Usually you get a rumour, I guess a bit like what happened with Cadbury’s.
"We’ve gone through closures like this before with multinationals and it’s never easy and often you get an inkling in the wind, but I think this is quite a surprise and a big blow."
The company declined to reveal to the Otago Daily Times how many roles would be affected in Dunedin.
However, about 350 roles across New Zealand were expected to be affected as a result of the proposed closures and other changes across the business, the press release said.
"I think we’re all feeling incredibly sad because Gregg’s has been an iconic brand in Dunedin," Ms Barker said.
"It’s a huge loss of part of our cultural landscape ... it’s something that’s always been there."
The facilities in Auckland and Christchurch will also be closed, while packing will cease at the associated frozen lines in Hastings.
A consultation process, which began yesterday and will finish on March 25, will include the review of redeployment opportunities.
The press release said redundancy packages, career transition and outplacement services, as well as 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 release said the manufacturing environment in New Zealand had become increasingly difficult over recent years, citing globally high inflation and various industry challenges.
E tū director Finn O’Dwyer-Cunliffe said the announced closures were a massive blow for workers, their whānau and the wider communities that depended on these jobs.
"These workers have given decades of their lives to this company. For many, this is the only job they’ve known. The impact on them and their families will be severe.
"This is part of an unfortunately familiar pattern of local manufacturing shutting down across Aotearoa. We’ve seen it with Carter Holt Harvey at Eves Valley, Sealord in Nelson, Kinleith Pulp and Paper, and now Heinz Wattie’s. It’s a trend that is deeply damaging to workers, to communities and to the country," he said.
