Cedenco picks up Heinz business

By Dita De Boni

Gisborne-based food ingredient manufacturer Cedenco Foods has agreed to buy the Heinz Wattie's Frozen business in Gisborne, for an undisclosed sum.

With the deal goes a contract to take over the processing of frozen peas and sweetcorn in Gisborne for the multi-national company.

Only four full time staff and 50 seasonal positions will be available at Cedenco's new automated facility, considerably less than the 24 full time and 180 seasonal jobs now being filled at Heinz Wattie's.

Cedenco will undertake a $4 million capital project to make room for Heinz's organic and conventional sweetcorn and pea processing operation.

It is estimated the business will add $7 million in revenue to Cedenco's coffers starting in November 2000 when the first processing of peas begins.

Chief executive of Heinz Wattie's Australia, Neville Fielke, says the business was transferred because the land had been sold to the council and the old plant was inefficient.

He says the Cedenco site, which already processes vegetables including sweetcorn into purees and powders, was the most logical choice for Heinz Wattie's and one best suited to help the multinational cope with the expansion of the organic vegetable markets both domestically and overseas.

Managing director of Cedenco Dean Witters told the Business Herald the move would improve his company's balance of export and domestic earnings, currently at 90 per cent export.

He also said the agreement had helped the local community, despite a shortfall in jobs, by maintaining seasonal job opportunities and the services of organics-minded Gisborne growers.

Heinz Wattie's also announced yesterday it planned to close its chilled petfood operation in Timaru with the loss of 14 positions. The Hawkes Bay site would accommodate the additional production. The Timaru plant was acquired two years ago as part of the purchase of Bruno Pet Foods.