Snap Crackle Stop: Sanitarium Axing Jobs as It Discontinues Iconic Cereals
In a major shift that reflects the changing breakfast habits of New Zealanders, Sanitarium, a leading breakfast food maker, has announced a proposal to stop the production of a wide range of its cereal products. This move, driven by a need to adapt to evolving consumer preferences, could lead to the discontinuation of several breakfast foods and the axing of 49 jobs within the company.
The Changing Breakfast Landscape
The breakfast table in Kiwi homes has been undergoing a transformation, with traditional cereal options taking a back seat to newer, often quicker and more convenient breakfast choices. Research highlighted by Sanitarium reveals that more than 20 percent of New Zealanders are now opting for alternatives such as hot drinks or liquid breakfasts over traditional flaked cereals in the morning. This shift in consumer behavior has been steadily eroding the sales of Sanitarium’s muesli, granola, clusters, Light ‘n’ Tasty, and puffed cereals, which together account for just 10 percent of the company’s total sales.
Sanitarium’s response to this trend is a radical one. The company has proposed to cease the production of these lesser-selling cereals by June 2025. This decision will allow them to focus more closely on their remaining popular lines: Weet-Bix, Weet-Bix Bites, and UP&GO.
Impact on Jobs and Community
The proposed changes at Sanitarium are more than just a shift in production focus; they also have significant implications for the company’s workforce. The discontinuation of these cereal lines could result in the loss of 49 roles across manufacturing, logistics, and head office departments. Michael Barton, Sanitarium NZ’s general manager, expressed the difficulty of considering such a proposal, emphasizing that the company is akin to a family and acknowledging the unsettling and challenging time for the staff.
Sanitarium has committed to fully supporting those affected through the consultation period, offering full entitlements, financial and personal counseling support, career advice, and assistance in transitioning to other employment opportunities, either within Sanitarium where possible or elsewhere.
Legacy and Future Plans
The proposed changes mark a significant pivot for Sanitarium, a company with almost 125 years of continuous operation in New Zealand. The plan to discontinue a range of cereals produced since the 1940s is reflective of a broader trend in the food industry, where companies must adapt to survive. This trend is not only about changing consumer tastes but also involves considerations around the sustainability of production lines. Barton noted that continuing the granola, muesli, puff, and flake cereal production lines would require a substantial investment in building and plant upgrades—an endeavor that is not viable given the declining sales for these cereal formats.
Despite these challenging decisions, Sanitarium remains committed to its mission of providing affordable, healthy foods and supporting community social initiatives. The focus now turns to reinforcing the company’s iconic products, Weet-Bix and UP&GO, ensuring that they continue to meet the breakfast needs of Kiwis and perhaps, in doing so, heralding a new era for this longstanding New Zealand company.
Change is never easy, particularly when it comes with such personal and professional impacts for those involved. The story of Sanitarium’s shift in production is a vivid reminder of the ever-evolving nature of consumer habits and the need for industries to adapt. As breakfast tables across the country continue to change, so too will the companies that have long served them.
Priyanka