Kraft Heinz to Close NZ Factories, Eliminating 350 Jobs after NZ$187.8m Loss
The Kraft Heinz Company plans to shutter Heinz Wattie’s factories in Auckland, Christchurch and Dunedin and end frozen packing in Hastings, affecting about 350 jobs. Its New Zealand unit has posted three consecutive annual losses, including a NZ$187.8 million deficit and a NZ$210.5 million impairment charge in 2024.
1. Factory Closure Plan
The company intends to close its Heinz Wattie’s production sites in Auckland, Christchurch and Dunedin, and cease packing on its frozen vegetable lines in Hastings. This move will end production of Heinz Wattie’s frozen vegetables and associated brands such as Gregg’s coffee, Mediterranean, Just Hummus and Good Taste Company dips.
2. Job Impacts and Worker Concerns
Approximately 350 employees will lose their positions, with many having average tenures of around 30 years. Union delegates have warned of severe financial and emotional hardship for affected staff, some of whom are near retirement and face limited local employment options.
3. Financial Performance of NZ Unit
HJ Heinz Company (New Zealand) has reported losses over the last three years, with a NZ$54.1 million loss in 2022, NZ$51.8 million in 2023 and a NZ$187.8 million total comprehensive loss in 2024. The unit also recorded a NZ$210.5 million impairment charge in 2024, underscoring ongoing commercial challenges.
4. Company Rationale and Future Positioning
Management cited increasingly difficult operating conditions in New Zealand, including global inflationary pressures and industry challenges, as driving factors behind the decision. The company reviewed multiple alternatives before concluding that this consolidation was necessary to secure its long-term viability.