Nestle brand selloff puts 55 jobs on line
Up to 55 confectionery workers will lose their jobs following a decision by Nestle New Zealand to sell some of its famous sweet treats.
Nestle has signed a conditional agreement to sell Mackintosh’s, Heards, Black Knight, and Fabulicious red licorice, and has proposed selling Life Savers and Oddfellows, to Australian private equity firm Quadrant, which already owns Kiwi confectionery firm RJ’s and Australian sweets company Darrell Lea.
The brands will still be made in New Zealand, but manufacturing will move from Wiri, Auckland, to RJ’s factory in Levin.
Nestle confectionery general manager Martin Brown said the company regretted that the proposal would lead to job losses.
‘‘This doesn’t reflect on the personal efforts of our staff. It has been based on a careful consideration of how to focus our activities and resources, recognising that our sugar confectionery range in New Zealand is largely made up of smaller local brands,’’ Brown said.
RJ’s had indicated it intended to offer affected Nestle staff members the opportunity to take up roles at the Levin factory, he said.
It is unclear how many positions would be on offer.
E tu¯ manufacturing and food industry union co-ordinator Phil Knight said the announcement of job losses came as ‘‘a bolt from the blue’’.
The restructure also meant production of Nestle’s Scorched Almonds would move to a thirdparty contractor in Melbourne, and production of the Lollipops brand would move to China, Knight said.
The union asked Nestle a few months ago if the company planned to cut staff numbers after similar situations overseas, and was assured by the company there were none, he said.
‘‘[So] not only is this the opposite of what we were told, but we weren’t invited to the meetings they held with our members late yesterday afternoon to deliver this news, prior to the public announcement. We’re very disappointed.’’
RJ’s national sales manager Amy Law said the company would be working with Nestle over the next few weeks to ‘‘identify what requirements will be needed at our plant in Levin’’.
‘‘If this agreement goes ahead we will be increasing our manufacturing requirement and are very keen to talk to any of the Nestle team who are keen to transfer.’’
The wider Horowhenua region was a great place to live, as it was close to beaches and cities, York said. ‘‘[Also], the cost of living is a lot less, the weather is stable and you rarely face any traffic jams.’’
Manufacturing of the lollies in the Levin factory would start before the end of the year.
The decision to sell the brands followed a review of Nestle’s confectionery business in Australia and New Zealand.
The company decided it wanted to shift its focus to its major chocolate, baking and medicated lozenge brands.
Brown said Nestle’s Wiri factory would focus on culinary products, including Maggi soups, recipe mixes and a wide range of products for professional food service.
This news comes after Cadbury owner Mondelez International announced earlier last year it would stop making Cadbury products in Dunedin in March 2018, with the loss of 350 jobs.
That decision was part of a $4.2 billion cost-cutting strategy that reportedly began in 2014.
Knight said the Nestle move was ‘‘yet another example of a global corporate making decisions which adversely affect local workers’’.
‘‘I think it’s time for New Zealanders to think carefully about what products and businesses they support, and where the profits made go to. Where they have a choice and the products are competitively priced and of a good standard, we would urge them to consider buying New Zealand-made products only.’’