Kiwis are set to lose some much-loved breakfast foods, with Sanitarium proposing to stop making its muesli, granola, flake, clusters and puff cereals by next year.
The proposal will see the Kiwi company move to streamline its product ranges to focus on Weet-Bix, Weet-Bix Bites and UP&GO brands.
The proposal would also see the “phased disestablishment” of 49 roles across manufacturing, logistics and the head office over the next 15 months, Sanitarium general manager (New Zealand) Michael Barton said.
It comes as research revealed more than 20% of Kiwis consume something in the morning besides traditional flaked breakfast cereal — mainly a hot drink or a portable liquid breakfast.
“Our sales for muesli, granola, clusters, Light ‘n’ Tasty and puffed cereals represent just 10% of sales and have been declining steadily over several years.
“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.”
The proposed 15-month plan would see production of Sanitarium Muesli, Granola, Light ‘n’ Tasty, Honey Puffs, Weeties, Weet-Bix Clusters, Cluster Crisp and Puffed Wheat, cease by 2025.
The products will remain available in most major supermarkets or individual and bulk food services until next June.
Popular products Skippy Cornflakes, Ricies, Weet-Bix and Marmite, will continue to be made at Sanitarium’s Auckland manufacturing facility, he said.
Barton said the granola, muesli, puff and flake cereal production lines — which Sanitarium started producing in the 1940s — would require a $28 million building and plant upgrade to sustain production which would not be viable amid changing consumer preferences and declining sales for the affected cereals.
He said consultation is underway with staff to ensure they are “fully supported through this unsettling and challenging time”.
“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.”
