Arnott’s has announced that 120 of its workers at its Adelaide bakery will be made redundant.
The company says about 30 per cent of biscuit production at its Marleston bakery will be moved to other manufacturing sites around Australia.
In a statement on Tuesday the company said the plans will improve its effectiveness and ensure the long-term viability of Arnott’s Biscuits production in Australia.
The company intends to implement the changes over the next 18 months as the work is transferred to the other sites.
The company said it had invested $150 million in upgrading its Australian sites over the past five years.
This had resulted in “super sites” in Sydney and Brisbane, enabling more efficient manufacturing of large scale biscuit lines.
Investment at the Marleston site, which Arnott’s acquired in 1953, has maintained specialist equipment for more complex products.
Supply chain vice president Craig Funnell said to remain competitive in a global market, Arnott’s needed to embrace improved technology and asset use.
He said Marleston was on a land-locked site in the middle of a residential neighbourhood and currently produced 10 per cent of Arnott’s biscuits.
But due to the site’s restrictions, it was not possible to increase production to levels achieved at other sites.
He said Marleston still had an important role, being the only site equipped to make Arnott’s most intricate biscuits such as Iced VoVo, Venetian, Honey Jumbles and Caramel Crowns.
The company’s Adelaide history goes back to 1875 when 22-year-old Charles Motteram joined the Aerated Bread and Biscuit Company, Adelaide.
In 1892 he formed a biscuit manufacturing company with a Mr Williamson. This was dissolved in 1908.
In 1909 Motteram built his own biscuit factory; the Motterams then joined forces in 1950 with the New South Wales based Arnotts.
Motteram Ltd was formed in 1952, with four Arnotts and three Motterams on the board.
In the 1960s, a series of amalgamations and acquisitions in the Australian market resulted in the creation of the Australian Biscuit Company Pty Ltd.
This included Arnotts and other companies such as Menz in South Australia, Brockhoff Biscuit Co. and Guest’s Biscuits in Victoria.
The Australian Biscuit Company was later renamed Arnott’s Biscuits Pty Ltd.
Regional varieties were maintained after these mergers, such as Menz Yo-Yo, Brockhoff Salada and Guest’s Teddy Bears.
Arnott’s was publicly listed in 1996 and later became a subsidiary of the Campbell Soup Company of the United States.
In Australia, Arnott’s is the largest producer of biscuits and the second-largest supplier of snack food.
