News Potatoes
Kraft Heinz restructures potato processing
Heinz Wattie's, part of food company Kraft Heinz, is closing three factories in New Zealand. The closures will cost 350 jobs and represent a major blow to the country's agricultural sector. The factories produced fruit and frozen vegetables, as well as potato products, among other things.
Employees were stunned to hear the news that around 350 jobs would be lost as a result of the closures. Heinz Wattie's, part of food giant Kraft Heinz, decided on March 11 to completely close three factories. These are sites in Auckland, Christchurch, and Dunedin. Additionally, the production line for frozen vegetables at another factory is being closed.
Three years of losses in a row
The news does not come as a complete surprise, although the unions and politicians say they are shocked. The company has been making a loss for three consecutive years. In 2024, the company was $210 million in the red, equivalent to €106,67 million. In the two years prior, the loss amounted to several tens of millions each time. According to Wattie's, these figures can be explained by disappointing sales and smaller margins. As a result, the partnership with certain fruit growers had already been terminated earlier.
Wattie's produces all kinds of products. In addition to frozen canned vegetables and fruit, for example, it also produces baby food and potato products, including fries and potato cakes (hash browns). By its own account, the assortment comprises 1.000 different products, despite the closure. The New Zealand company was acquired by Kraft Heinz in 1992.
Blow for growers
Trade association Vegetables New Zealand has reacted with shock to the news. It fears the consequences for vegetable growers, who are seeing a major buyer disappear. The country primarily produces vegetables for its own population, with 80% to 90% remaining domestically, the organization says. The sector generates an annual turnover equivalent to €560 million. In 2025, the country had 525 certified vegetable growers.
In the New Zealand press, Heinz Wattie's CEO Andrew Donegan speaks of a 'perfect storm' hitting the company. "Rising gas and energy prices, a difficult growing season, and global financial pressure combine to create a challenging business climate." Despite the closures and the outlook, the company remains widely represented in the country, according to Donegan, with 85% of all products continuing to be manufactured in New Zealand.
It is not only Heinz Wattie's that is struggling; parent company Kraft Heinz is also in a difficult financial situation. In February, the company announced a loss equivalent to €4,7 billion. A previously planned split between the grocery and sauce divisions was put on hold.
Niels van der Boom
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