“The breakfast market is changing, and we have seen a global move away from some cereal formats. We need to align our production with evolving consumer appetites and demand trends,” Barton said.
“If the proposal proceeds, it would mean the loss of 49 roles across manufacturing, logistics and head office.”
Barton said the granola, muesli, puff and flake cereal production lines, which Sanitarium started producing product on in the 1940s, required a $28 million building and plant upgrade to sustain production.
However, this was not viable, he said.
The soon-to-be discontinued products will remain available in most major supermarkets or individual and bulk food services until mid-next year.
“We are like a family at Sanitarium and considering this proposal was tough,” Barton said. “We are committed to supporting and caring for all our employees... if the proposal goes ahead, staff impacted by the change would receive full entitlements, financial and personal counselling support, along with career support and advice to transition to other employment, if they are unable to transfer to other roles within the company.”
The phased disestablishment of the 49 roles would take place over the next 15 months.
Financial accounts for the Seventh Day Adventist Church, which owns Sanitarium, shows it had a surplus of $1.73m in the year to June 30. Revenue from providing goods and services was $225m.
It had total revenue of $280m and total expenses of $278m, which included $214.8m in nutrition expenses.
It employed 564 full-time staff in New Zealand and 101 part-timers in paid work.
Cameron Smith is an Auckland-based journalist with the Herald business team. He joined the Herald in 2015 and has covered business and sports.
