Relocations, upgrades take a bite out of Heinz Watties’ profits

Heinz Watties has reported a five per cent drop in net profit for the year to April 29, with significant costs centred around the relocation of sauce and beetroot processing back to New Zealand.

Watties announced in mid-2011 that the processing of some sauces and beetroot would move from Australia to Hastings and Hawke’s Bay.  The Girgarre Heinz tomato processing facility’s closure at the beginning of the year was reported in Manufacturers’ Monthly and elsewhere.

Heinz Watties has spent $7.5 million plus upgrading its beetroot facilities since mid-last year, reports Fairfax’s Business Day, eating into profit results.

Watties was acquired by global tinned food giant Heinz two decades ago. It exports 60 per cent of what it manufactures.

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