Nestlé NZ confirms exit from sugar confectionery

30 July, 2018 by
FMCG Business

Nestlé New Zealand has confirmed that it will proceed with the sale of local confectionery brands to RJ’s. Completion of the sale is expected to occur on 31 August, with RJ’s in New Zealand purchasing the Mackintosh’s, Heards, Oddfellows, Black Knight and Fabulicious Red Licorice brands from Nestlé. Where possible, RJ’s intends to continue the manufacture of these brands in New Zealand, with plans to be finalised in the coming weeks. Nestlé will also sell the Life Savers brand to Darrell Lea in Australia.

Nestlé Confectionery General Manager Martin Brown thanked staff and union representatives for the productive manner in which the consultation was undertaken. The sale of these Nestlé confectionery brands will result in up to 55 roles being made redundant from the Nestlé factory in Wiri. Employees will be offered voluntary redundancies in the first instance, with all affected staff offered generous redundancy packages and access to outplacement services.

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“While the sale regretfully means job losses at our Wiri factory, we are working with RJ’s to identify opportunities for people leaving our workforce to join RJ’s factory in Levin,” Brown said.

“As well, we have been contacted by a number of other local businesses to discuss job opportunities for our employees – an indicator of the calibre of our people.”

The sale follows a review of Nestlé’s confectionery business in Australia and New Zealand, which in New Zealand, will see Nestlé focus on its chocolate, baking and medicated lozenge brands.

Nestlé will continue to manufacture culinary products at its Wiri factory, including Maggi soups, recipe mixes and a wide range of products for professional food service, sold in New Zealand and exported globally.

Did you know?

Nestlé is the world’s largest food and beverage company. It is present in 189 countries around the world, and its 323,000 employees are committed to Nestlé’s purpose of enhancing quality of life and contributing to a healthier future. Nestlé offers a wide portfolio of products and services for people and their pets. Its more than 2,000 brands range from global icons like Nescafé or Nespresso to local favourites like Milo and Maggi. Nestlé is based in the Swiss town of Vevey where it was founded more than 150 years ago.