Arnott's to open manufacturing facility in NZ

The Arnott’s Group (TAG) manufacturing facility in Avondale, Auckland, was officially opened on 9 June by the company’s NZ Country Director Mike Cullerne, TAG CEO; George Zoghbi; and New Zealand’s Deputy Prime Minister, Carmel Sepuloni.

According to the company it’s been 25 years since it has manufactured Arnott’s products in New Zealand and the first biscuits to run off the line will be its shortbread range in local  flavours — Feijoa, Mixed Berry and Doris Plum.

The 4000 m² bakery has been designed as an innovation hub for Arnott’s sweet and savoury biscuits across the ANZ region and to accommodate further growth of the 180degrees cracker brand. Having a local manufacturing site will also help it improve supply chain logistics for the region.

New Zealand Food and Grocery Council Chief Executive Raewyn Bleakley said that typically, large food manufacturers prioritised economies of scale, which favoured taking manufacturing offshore, so it was encouraging to see a large food producer like Arnott’s bring back local manufacturing.

“It’s a really positive development to see refreshed interest in having manufacturing back in New Zealand from companies like Arnott’s.

“Recent challenges of the supply chain with sourcing ingredients and distribution made difficult during the pandemic had made some organisations rethink the importance of local relationships with suppliers and their impact on their environment.

“Those factors will be things that all companies are weighing quite carefully when making investment decisions in the current environment.

“Food manufacturing remains a difficult market, but local manufacturing should in theory mean more competitive prices, and there could be a trade-off of scale and higher costs if ingredients are imported.”

Image credit: iStock.com/FotoDuets

Originally published here.