49 jobs on the line, many cereal lines face the chop
Forty-nine jobs are set to go at Sanitarium as it moves to streamline its product range in response to changing breakfast tastes.
The Seventh-day Adventist Churchowned food company planned to stop producing a range of popular New Zealand breakfast cereals by June 2025, it announced yesterday.
Sanitarium New Zealand general manager Michael Barton said the breakfast market was changing, and the company needed to align its production with consumer demand.
Research showed that more than 20% of New Zealanders consumed something other than the traditional flaked cereal in the morning, and it was mainly a hot drink, or a portable liquid breakfast, he said.
“Our sales for muesli, granola, clusters, Light ‘n’ Tasty and puffed cereals represent just 10% of sales and have been declining steadily over several years.”
The granola, muesli, puff and flake cereal production lines, which Sanitarium started producing in the 1940s, would require a $28 million building and plant upgrade to sustain production, he said.
That was not viable given changing consumer preferences and declining sales for that type of cereal, and had led to a proposal to phase out some familiar brands.
Under the proposal, production of Sanitarium Muesli, Granola, Light ‘n’ Tasty, Honey Puffs, Weeties, Weet-Bix Clusters, Cluster Crisp and Puffed Wheat would cease by the middle of next year.
Barton said that if the proposal went ahead it would mean the loss of 49 roles across manufacturing, logistics and head office over the next 15 months.
The company’s immediate priority was to work through the consultation period with its staff, and ensure they were fully supported through the unsettling and challenging time, he said.
“We are like a family at Sanitarium and considering this proposal was tough. We are committed to supporting and caring for all our employees.
“Staff impacted by the change will receive full entitlements, financial and personal counselling, and career support to transition to other employment, if they are unable to transfer to other roles within the company.”
If the proposal went ahead, Sanitarium would streamline its product ranges to focus on growing its iconic Weet-Bix, Weet-Bix Bites and UP&GO brands.
Popular products Skippy Cornflakes, Ricies, Weet-Bix and Marmite would continue to be made at the company’s Auckland factory.
The products that were being phased out would continue to be sold until the middle of next year.
Sanitarium, which has been in operation for nearly 125 years, has experienced some rocky times of late.
In September, The Warehouse Group said Sanitarium would no longer supply it with Weet-Bix.
But just days later, after mounting public pressure, the company backtracked on its decision and said it would reinstate supply.
The Warehouse Group went to the Commerce Commission over the matter, but it was recently revealed that the commission had decided not to investigate.