New Zealand food and beverage company Kono NZ – a subsidiary of Wakatū Incorporation – will be shutting down its Blenheim-based business Annies by February. 

Kono NZ purchased Annies in 2014 after it had gone into voluntary receivership. The snacks company was known for its  Fruit Bars, Fruit Jerky, Fruit Flats and Fruit Strips.

The closure of Annies was a difficult decision for the board to take, says Kono COO Andy Wotton, but was part of a wider strategic reset to return to the company’s core purpose – operating sustainable, high-performing businesses that generate a strong financial return.

“Annies wasn’t able to meet performance requirements over several years and weren’t sustainable long term,” said Wotton. 

“Despite our best efforts to rebuild the business over the last seven or eight years, Annies has operated at a loss, except for a couple of outlier results.”

He explained that as a business, there is a need to adapt, and though difficult, “the decision to close Annies was right” rather than continue to operate in unviable circumstances. 

Annies employs 39 people within the Marlborough region. Wotton said the company hopes to offer staff redeployment options within the business as an alternative to redundancy and was actively exploring opportunities.

“Manaakitanga is central to how we operate, and this process will be managed as carefully and thoughtfully as possible,” he added. “We will work closely with our affected people over the coming weeks to explore every opportunity available.”

Annies’ last day of production is expected to be February 24, with the lease ending at the end of April. It is anticipated that normal business operations will continue until then, and all open sales orders will be fulfilled.