Watties widen canning

Press, Volume CXII, Issue 32838, 11 February 1972, Page 1

Watties widen canning

■ (Neto Zealand Preet AeeociationJ HASTINGS, February 10. Wattie Industries, Ltd, is to take over the canning activities in New Zealand of Unilever, Ltd, the two companies announced.

Front February 29 : Watties will can and sell Crest products formerly made by Unilever, but Unilever will continue to deep-freeze and quick-freeze under the Birdseye brand.

The move completes Unilever’s withdrawal from the canning field in New Zealand, which started in Sep-

tember, 1970, when Watties . took over the canning of ■ peaches, pears, and fruit ; grown in Hawke’s Bay. Mr C. R. Borland, chairman of Unilever New Zealand, Ltd, said the canning industry in New Zealand had marginal profits. "Unilever’s decision to withdraw, however, was finally necessitated by the impact of inflation on the business, coupled with the ' difficulty under the present very restrictive price-justifi-cation scheme of maintaining percentage profit margins; and the discriminatory payroll tax in such a labourintensive industry,” he said. "In addition the canning plant is becoming outmoded and expenditure on new plant is not considered justified.” Sir James Wattle endorsed Mr Borland’s comments. “It is only by attaining and maintaining production on a large scale with a correspond-

ing volume of turnover that it is possible to show a reasonable return on capital invested. “To achieve this, a very large amount of money is required to buy equipment, factory buildings, warehouses, and to provide sufficient capital to finance the resultant large-scale operations.” There will now be only four companies canning food in New Zealand.

Sir James Wattie said that as far as he knew, only Watties, St George, Wyona. and Gregg’s were canning food.