Local peach growers were told their fruit will no longer be needed. Photo: 123rf
Wattie's New Zealand is rejecting the suggestion a break-up of its parent company, Kraft Heinz, is behind the decision to reduce peach production in its home of Hawke's Bay.
Peach growers were told their fruit will no longer be needed as the company attributed "declining demand" for canned peaches in New Zealand, shoppers choosing imported fruit instead.
It comes after parent company US-based Kraft Heinz announced earlier this month it would split the businesses in half to "unlock each brand's potential" while "reducing complexity".
Wattie's was founded in 1934 in Hawke's Bay by Sir James Wattie and Harold Carr under the name J. Wattie Canneries, starting with jams and expanding to fruits and vegetables.
H.J. Heinz Company, as it was known at the time, purchased the company in 1992.
But Justine Powell, head of marketing at Wattie's New Zealand, said the reduced intake of peach crops was not related to the recent company split.
"The reduction in Wattie's intake of peach crops is directly related to the reduced consumption by consumers of New Zealand-grown peaches in favour of cheaper imported products, following [Cyclone Gabrielle]," she said.
Powell said the reduction was a "necessary response" to an ongoing decline in demand.
1959 Wattie's canned Chinese gooseberries label.[courtesy Alexander Turnbull Library] Photo:
"Over recent years, we've seen a steady decline in demand for New Zealand-grown canned peaches, with many consumers choosing cheaper imported alternatives.
"As a result, we've had to adjust the volumes we can sustainably take from local orchards."
But she said it was still committed to offering a range of canned New Zealand-grown canned fruit, including peaches.
"There are no plans at this stage to discontinue Wattie's canned peaches products, or to import peaches. Wattie's focus remains on sourcing locally grown fruit wherever possible.
"We would like nothing more than to see Kiwis choosing to buy New Zealand-grown canned fruit, particularly peaches, and encourage everyone to back our local producers."
Former Prime Minister Chris Hipkins flying the flag for Wattie's. Photo: RNZ / Samuel Rillstone
Owner Kraft Heinz was a multinational confectionery, food and beverage conglomerate that marketed brands into more than 170 countries
Its website said it worked with 3000 suppliers globally in the manufacturing of its products, under other global brands globally including drink Kool-Aid, Golden Circle fruit, Jello-O and Philadelphia cream cheese.
Powell said some of the growers had been partners for years, and recognised it was a difficult time for them and their businesses.
"[We] are committed to helping them through this transition phase."
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