1 00:00:00,080 --> 00:00:02,000 Speaker 1: More tough times at Heines. What is I'm sure you're 2 00:00:02,000 --> 00:00:04,880 Speaker 1: well aware. They're looking at closing three facilities, awking christ 3 00:00:04,880 --> 00:00:06,760 Speaker 1: you to need and three hundred and fifty jobs are 4 00:00:06,800 --> 00:00:08,320 Speaker 1: on the line. It would be the end of frozen 5 00:00:08,400 --> 00:00:12,240 Speaker 1: vegetable production. Andrew Donogan is the Heines Waty managing director 6 00:00:12,280 --> 00:00:15,280 Speaker 1: and is with us. Andrew morning, Good morning, Mike. There's 7 00:00:15,280 --> 00:00:17,760 Speaker 1: been a long time coming. Is this an ongoing story? 8 00:00:17,800 --> 00:00:21,639 Speaker 2: As they say, Look, Mike, first and foremost, I just 9 00:00:21,680 --> 00:00:24,200 Speaker 2: want to let everyone know it's been really tough twenty 10 00:00:24,239 --> 00:00:27,880 Speaker 2: four hours on our people. We announced this year today 11 00:00:27,880 --> 00:00:31,200 Speaker 2: afternoon across three of our manufacturing sites, and as you 12 00:00:31,240 --> 00:00:33,959 Speaker 2: can imagine, it's really difficult news for our people to hear. 13 00:00:34,200 --> 00:00:38,040 Speaker 1: Yeah, exactly, But an ongoing story, Mike. 14 00:00:38,080 --> 00:00:42,000 Speaker 2: We've been experiencing many pressures over the last five years 15 00:00:42,000 --> 00:00:46,080 Speaker 2: in New Zealand, particularly in regards to manufacturing costs. We've 16 00:00:46,120 --> 00:00:50,599 Speaker 2: experienced things like gas prices tripling over the last seven years, 17 00:00:51,000 --> 00:00:54,200 Speaker 2: energy doubling over the last seven years, diesel that runs 18 00:00:54,200 --> 00:00:58,120 Speaker 2: our trucks, and for cliffs doubling, leading to an overall 19 00:00:58,160 --> 00:01:01,680 Speaker 2: impact of nearly forty percent cost per toney increase, which 20 00:01:01,720 --> 00:01:05,560 Speaker 2: has really challenged us as an organization to make money. 21 00:01:05,720 --> 00:01:08,559 Speaker 2: When you're throwing things like poor crops stand in christ 22 00:01:08,680 --> 00:01:12,480 Speaker 2: Church for the last few years and coffee coffee commodity 23 00:01:12,480 --> 00:01:14,880 Speaker 2: prices that have increased close to one hundred percent over 24 00:01:14,880 --> 00:01:17,920 Speaker 2: the last five years, it's really made it not viable 25 00:01:17,959 --> 00:01:21,280 Speaker 2: for us to run these businesses, leading to overall declines 26 00:01:21,319 --> 00:01:22,479 Speaker 2: of nearly twenty percent. 27 00:01:22,640 --> 00:01:25,160 Speaker 1: Like right, So if you close these three facilities and 28 00:01:25,200 --> 00:01:27,720 Speaker 1: the three hundred and fifty jobs gone, what part of 29 00:01:27,760 --> 00:01:29,360 Speaker 1: your overall footprint is. 30 00:01:29,319 --> 00:01:34,280 Speaker 2: That, Mike. These are three manufacturing sites. As you stated, 31 00:01:34,760 --> 00:01:37,880 Speaker 2: we have two other major manufacturing sites in the Hawk's Bay. 32 00:01:38,920 --> 00:01:44,280 Speaker 2: So this will allow us these closures, it's only a 33 00:01:44,319 --> 00:01:47,360 Speaker 2: proposal at this stage. We'll allow us to really focus 34 00:01:47,400 --> 00:01:50,320 Speaker 2: on these two major sites, allowing us to invest and 35 00:01:50,360 --> 00:01:54,160 Speaker 2: modernize these facilities, allow us to really concentrate on what 36 00:01:54,280 --> 00:01:57,040 Speaker 2: is the core part of the what is business setting 37 00:01:57,120 --> 00:01:57,960 Speaker 2: us up to success? 38 00:01:58,480 --> 00:02:02,160 Speaker 1: Right, So it's a long term play. You think you 39 00:02:02,200 --> 00:02:05,240 Speaker 1: can survive and stay and do well once you get 40 00:02:05,280 --> 00:02:06,480 Speaker 1: through this. If you get through this. 41 00:02:07,640 --> 00:02:11,079 Speaker 2: Yeah, absolutely, Mike. I'm confident in that what Is has 42 00:02:11,120 --> 00:02:13,440 Speaker 2: been alive for ninety three years and it's the brand 43 00:02:13,440 --> 00:02:16,480 Speaker 2: that Kiwi's love when we do know that. What we 44 00:02:16,520 --> 00:02:19,000 Speaker 2: do know is if we don't make these changes now, 45 00:02:19,120 --> 00:02:21,280 Speaker 2: it's going to be quite challenging to run the business 46 00:02:21,280 --> 00:02:24,440 Speaker 2: for the future. Now. Today is not so much about 47 00:02:24,440 --> 00:02:27,320 Speaker 2: the future. I mean it is, but today's about the 48 00:02:27,320 --> 00:02:30,120 Speaker 2: people that have been impacted. Now focus is really to 49 00:02:30,160 --> 00:02:33,640 Speaker 2: be there with people on sites supporting them. We'll be 50 00:02:33,680 --> 00:02:36,880 Speaker 2: offering counseling, will be offering any support, but it can 51 00:02:36,919 --> 00:02:40,800 Speaker 2: to those people throughout those three manufacturing sites and quite 52 00:02:40,800 --> 00:02:42,079 Speaker 2: frankly across the country. 53 00:02:42,320 --> 00:02:45,560 Speaker 1: So have we got just broader issues the local people 54 00:02:45,600 --> 00:02:48,400 Speaker 1: supporting local as opposed to buying cheaper imported, the peach 55 00:02:48,520 --> 00:02:50,800 Speaker 1: dumping thing with the Chinese and all that sort of stuff. 56 00:02:50,840 --> 00:02:53,320 Speaker 1: Are there things leavers that can be pulled, triggers that 57 00:02:53,360 --> 00:02:56,320 Speaker 1: can be pulled that actually alleviate the problem or are 58 00:02:56,360 --> 00:02:58,680 Speaker 1: we in just as a country in general trouble. 59 00:03:00,400 --> 00:03:03,080 Speaker 2: I think I think it's a case of a little 60 00:03:03,080 --> 00:03:05,720 Speaker 2: bit of everything. We know. Kiwis are doing it tough 61 00:03:05,760 --> 00:03:09,320 Speaker 2: out there, cops living. Crisis has certainly hit New Zealand 62 00:03:09,360 --> 00:03:12,079 Speaker 2: and we see that. We see that as an organization. 63 00:03:12,720 --> 00:03:15,280 Speaker 2: What we're working is to work to give key is 64 00:03:15,320 --> 00:03:18,120 Speaker 2: the best deal. We're working with our retailers on this. 65 00:03:18,280 --> 00:03:21,320 Speaker 2: We're working to offer them a solution for everyone, and 66 00:03:21,560 --> 00:03:24,720 Speaker 2: that's not always possible. We know kiwis have to make 67 00:03:24,720 --> 00:03:27,720 Speaker 2: a choice as to whether to buy what's product or 68 00:03:27,800 --> 00:03:30,880 Speaker 2: alternative products, and so we'll continue to try and drive 69 00:03:31,000 --> 00:03:33,360 Speaker 2: that equation for them. 70 00:03:33,639 --> 00:03:36,240 Speaker 1: All right, whatish you luck with them? Andrew Donoghan, who's 71 00:03:36,280 --> 00:03:37,800 Speaker 1: the Hens while he's managing director. 72 00:03:38,360 --> 00:03:41,280 Speaker 2: For more from the Mic Asking Breakfast. Listen live to 73 00:03:41,400 --> 00:03:41,960 Speaker 2: news talks. 74 00:03:41,960 --> 00:03:45,160 Speaker 1: It'd be from six am weekdays, or follow the podcast 75 00:03:45,200 --> 00:03:46,080 Speaker 1: on iHeartRadio.