1 00:00:00,240 --> 00:00:02,520 Speaker 1: Yeah, they do see so big news from Heinz what 2 00:00:02,640 --> 00:00:06,319 Speaker 1: he's today The companies announced it will stop selling frozen vegetables, 3 00:00:06,640 --> 00:00:10,119 Speaker 1: Gregg's Coffee and a range of brand dip brands in 4 00:00:10,119 --> 00:00:13,200 Speaker 1: New Zealand. They will shut three manufacturing facilities. They are 5 00:00:13,200 --> 00:00:15,360 Speaker 1: in Auckland, christ Chuch in Dunedin and the packing plant 6 00:00:15,400 --> 00:00:17,840 Speaker 1: and Hastings is also on the chopping block now. Alan 7 00:00:17,920 --> 00:00:19,959 Speaker 1: McDonald is the head of Advocacy and Strategy for the 8 00:00:19,960 --> 00:00:24,759 Speaker 1: Employers and Manufacturers Association and with US high Allen, Hey, 9 00:00:24,760 --> 00:00:26,079 Speaker 1: hell why have they made this call? 10 00:00:27,840 --> 00:00:30,320 Speaker 2: Well, I've only seen the press release like you, and 11 00:00:30,680 --> 00:00:33,800 Speaker 2: they cite inputs as one of the big causes of 12 00:00:33,840 --> 00:00:36,400 Speaker 2: them making this very tough decision, which is very hard 13 00:00:36,400 --> 00:00:40,559 Speaker 2: for those three hundred and fifty odd people festival and 14 00:00:40,760 --> 00:00:44,440 Speaker 2: you know those inputs in that manufacturing that will be 15 00:00:44,440 --> 00:00:47,720 Speaker 2: getting their raw materials, that will be paying for their 16 00:00:47,840 --> 00:00:50,680 Speaker 2: energy and frozen foods. You need a lot of electricity 17 00:00:50,680 --> 00:00:52,960 Speaker 2: and energy to first chill them and then store them 18 00:00:53,760 --> 00:00:57,760 Speaker 2: and all be stuff like plant and machinery and waste 19 00:00:57,800 --> 00:00:59,520 Speaker 2: cost all that the average ways cost them. The last 20 00:00:59,600 --> 00:01:02,120 Speaker 2: year's been doubt about two point one two point two percent, 21 00:01:02,240 --> 00:01:05,360 Speaker 2: so it'll be some combination of maybe all of those 22 00:01:05,680 --> 00:01:08,319 Speaker 2: or some of those that's led to them making this 23 00:01:08,480 --> 00:01:09,280 Speaker 2: very tough decision. 24 00:01:09,560 --> 00:01:11,600 Speaker 1: I mean, I'm taking from the fact that you've only 25 00:01:11,680 --> 00:01:13,600 Speaker 1: read the press release. No one talked to you. You 26 00:01:13,640 --> 00:01:15,440 Speaker 1: didn't see this coming. This wasn't widely known. 27 00:01:17,959 --> 00:01:21,440 Speaker 2: No, it hadly known. Yeah, so that's it is a 28 00:01:21,440 --> 00:01:23,440 Speaker 2: bit of a surprise. But I don't think it'll be 29 00:01:23,440 --> 00:01:24,800 Speaker 2: the last of these sorts of things we're going to 30 00:01:24,800 --> 00:01:25,360 Speaker 2: see this year. 31 00:01:26,120 --> 00:01:30,320 Speaker 1: This year you think, yeah, I think there'd be more. 32 00:01:30,640 --> 00:01:32,560 Speaker 2: Some of them won't be as high profile obviously, as 33 00:01:32,680 --> 00:01:34,640 Speaker 2: as heinz Waddy, which is, you know, a brand that's 34 00:01:34,640 --> 00:01:36,319 Speaker 2: been in the New Zealand for a very long time. 35 00:01:37,280 --> 00:01:40,199 Speaker 2: We keep hearing rumblings of others getting ready to exit, 36 00:01:40,319 --> 00:01:44,600 Speaker 2: significant size manufacturers as well as smaller ones. So you know, 37 00:01:44,720 --> 00:01:49,800 Speaker 2: the industrialization has been happening or two prompted by some 38 00:01:49,920 --> 00:01:53,320 Speaker 2: very high electroce tricity prices or slated as being prompted 39 00:01:53,320 --> 00:01:55,960 Speaker 2: by those prices. So you know it won't be a 40 00:01:55,960 --> 00:01:57,480 Speaker 2: supposed to see more unfortunately. 41 00:01:57,640 --> 00:01:59,800 Speaker 1: Allan The thing is, though, I thought, I mean, sure, 42 00:01:59,840 --> 00:02:02,640 Speaker 1: we've had we've had problems with the electricity prices. We 43 00:02:02,680 --> 00:02:05,040 Speaker 1: absolutely have, but I thought for the for the most part, 44 00:02:05,120 --> 00:02:07,480 Speaker 1: we had got through that that was a last year story. 45 00:02:07,520 --> 00:02:08,080 Speaker 1: Am I wrong? 46 00:02:09,960 --> 00:02:13,840 Speaker 2: Yes, they're still going up, you know. So the lines companies, 47 00:02:13,880 --> 00:02:16,520 Speaker 2: for example, they are on a cycle when they can 48 00:02:17,040 --> 00:02:20,799 Speaker 2: increase their prices, and that's just started for now. The 49 00:02:21,280 --> 00:02:24,400 Speaker 2: dams are full, and that's good, so that might keep 50 00:02:24,440 --> 00:02:28,360 Speaker 2: a stable level, but they're not dropping back, and they 51 00:02:28,480 --> 00:02:31,000 Speaker 2: forecast to go up even when we get the new 52 00:02:31,080 --> 00:02:33,240 Speaker 2: LNG plant, if we get it and if we use it, 53 00:02:34,080 --> 00:02:34,960 Speaker 2: they're still going up. 54 00:02:35,200 --> 00:02:37,000 Speaker 1: All right, Allen, thank you very much. I do appreciate 55 00:02:37,000 --> 00:02:40,000 Speaker 1: your time. That's Allen McDonald, Employers and Manufacturers Association, head 56 00:02:40,000 --> 00:02:41,119 Speaker 1: of Thattpicacy and Strategy. 57 00:02:41,720 --> 00:02:44,880 Speaker 2: For more from Hither Duplessy Allen Drive, listen live to 58 00:02:45,000 --> 00:02:48,040 Speaker 2: news talks it'd be from four pm weekdays, or follow 59 00:02:48,080 --> 00:02:49,840 Speaker 2: the podcast on iHeartRadio.