Food manufacturer Heinz Wattie’s plans to shut three New Zealand factories, affecting about 350 jobs.

The changes were part of the company’s shift to focus on its long-term strategy, it said.

The proposal would result in the closure of three manufacturing facilities located in Auckland, Christchurch and Dunedin.

“After careful consideration, the company is proposing to discontinue sale and production of frozen vegetables and Gregg’s coffee, as well as dips sold primarily under Mediterranean, Just Hummus and Good Taste Company brands,” it said.

These products would be phased out over the course of the year.

Packing would also cease at the associated frozen lines in King Street, Hastings.

About 350 roles were expected to be impacted because of the proposed site closures and other changes across the business.

Over recent years, the manufacturing environment in New Zealand had become increasingly difficult, the company said.

Heinz Wattie’s is a subsidiary of US-listed The Kraft Heinz Company.

“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,” he said.

The decision to start the process was not taken lightly, the company said.

“Numerous alternatives and options were explored before reaching this phase.

“It is a necessary step to position our company for the future.”

He said high inflation globally and “various industry challenges” have all placed ongoing pressure on the commercial performance of the business.

Founded by Sir James Wattie in 1934, Wattie’s is well-known for its tomato sauce, baked beans, spaghetti and a wide range of fruit and vegetable products.

According to accounts filed with the New Zealand Companies Office last year, Wattie’s New Zealand business paid out more to its suppliers and employees than it received in customer payments in its 2024 financial year.

Financial records showed H.J. Heinz Company (New Zealand) made losses over the past three years and took an impairment of more than $210 million in 2024.

It made a loss of $187.9m on the back of that impairment in the year to December 28, 2024, which compared with a $51.9m loss in 2023.

In 2022, the loss was $54.1m.

Payments to suppliers and employees during the 2024 year totalled $747.9m, more than the $738.3m it received from customers.

The company was left with cash and cash equivalents of $5.54m.

Jamie Gray is an Auckland-based journalist, covering the financial markets, the primary sector and energy. He joined the Herald in 2011.