Wattie's New Zealand has stated that the decision to reduce peach production in Hawke's Bay is linked to declining demand rather than the recent announcement that parent company Kraft Heinz will split its global operations.
Peach growers in Hawke's Bay were informed that their fruit would no longer be required, with the company attributing the change to reduced consumer interest in New Zealand-grown canned peaches, as shoppers increasingly select imported fruit.
Justine Powell, head of marketing at Wattie's New Zealand, said: "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]. The reduction was a necessary response to an ongoing decline in demand."
Powell noted that demand for locally grown canned peaches has steadily decreased in recent years, forcing the company to adjust the volumes it could purchase from domestic orchards. She added that Wattie's would continue to offer 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."
Wattie's, founded in 1934 in Hawke's Bay, was purchased in 1992 by H.J. Heinz Company, now Kraft Heinz. The multinational markets brands in more than 170 countries and works with around 3,000 suppliers worldwide across products including Kool-Aid, Golden Circle, Jell-O, and Philadelphia cream cheese.
Powell acknowledged the impact on long-term grower partners. "We are committed to helping them through this transition phase," she said.
Source: RNZ