Foodstuffs South Island, the co-operative behind the South Island’s New World, PAK’nSAVE and Four Square stores, is addressing a growing challenge in its supply chain, a shortage of frozen storage capacity, with a bold investment in automation at its Hornby Distribution Centre.
As demand for frozen goods increases and pressure on storage intensifies, the co-operative is futureproofing its operations by building New Zealand’s first fully automated -22°C freezer within the supermarket sector. The new facility will more than triple current frozen storage capacity at the site, expanding from 2,800 to 9,040 pallet spaces, a 222% increase.
This industry-leading upgrade is a strategic step to ensure Foodstuffs South Island can continue delivering for its network of stores and customers, now and in years to come.
The $28 million facility features high-tech automation and sustainability, including an Automated Storage and Retrieval System (ASRS), a hypoxic fire prevention system, and 340 solar panels capable of generating 150kW, enough electricity to reduce carbon emissions by approximately 200 tonnes over 10 years.
General Manager of Supply Chain at Foodstuffs South Island, Kris Lancaster, says the investment is part of the co-op’s long-term commitment to feeding the South Island.
“This project is about more than adding storage space, it’s about future-proofing our supply chain so we can deliver for all South Island communities for years to come. We’re building a safer, smarter and more sustainable distribution centre that will help us keep pace with demand, reduce emissions, and support our stores and suppliers right across the South Island.”
Other key features of the development include eight levels of high-density racking, two automated cranes imported from Italy, and dedicated picking and staging zones to improve efficiency. The new hypoxic fire suppression system will prevent fires by maintaining low oxygen levels, reducing the risk of water damage to stock and infrastructure.
Site works began in March 2024, and the new freezer is on track for completion in August 2025.
The project is being delivered in partnership with Apollo Projects and PHS Innovate.
