Maketū Pies Ceases Production After Failed Sale Attempt
Iconic New Zealand pie brand closes factory doors after 44 years of operation.
1Operations Ending This Week
Maketū Pies will cease all production this Friday, marking the end of a 44-year legacy in New Zealand. Owner Montana Group confirmed the closure of the Bay of Plenty factory after failing to secure a buyer. This decision results in the immediate loss of 21 jobs at the manufacturing facility.
2Failed Acquisition Challenges
Montana Group CEO Lizzi Pearson stated that while several parties expressed strong interest in acquiring the brand, no deal materialized. Potential buyers cited the short transition period and the significant logistical difficulty of relocating production to existing facilities as primary barriers. These operational hurdles ultimately prevented a successful transfer of ownership.
3Historical Business Context
Founded by a local family in 1982, the brand became a staple in dairies, service stations, and supermarkets nationwide. The business faced financial instability in recent years, entering receivership before being purchased by Te Arawa Management Ltd in 2019. It subsequently entered voluntary solvent liquidation in 2024 following persistent financial losses.
4Montana Group Turnaround Attempt
Montana Group acquired the brand in December 2024, initiating a comprehensive turnaround strategy that included a major brand refresh. Despite these efforts to restore the company to its former glory, the ageing factory infrastructure proved to be a major constraint. The facility would have required a complete rebuild for sustainable growth.
5Site Closure Timeline
Following the cessation of production this Friday, the company will begin preparing the Bay of Plenty site for final closure. This process must be completed before the current lease expires in December. The management team is currently focusing on the wind-down procedures while acknowledging the dedication shown by the staff.
6Operational Sustainability Issues
The decision to close was finalized once it became clear that ongoing production at the existing factory was no longer economically sustainable. Montana Group prioritized finding a viable pathway for the brand throughout the process. However, the structural limitations of the ageing plant made continued operations impossible under current market conditions.
7Impact on Local Workforce
The closure results in the redundancy of 21 employees who have been working to revitalize the brand over the past two years. CEO Lizzi Pearson expressed disappointment regarding the outcome for the staff and stakeholders. The company remains proud of the collective achievements made during the brief period of ownership.
8Broader Market Implications
The exit of Maketū Pies highlights the challenges faced by legacy food brands operating with outdated manufacturing infrastructure. While the brand maintained strong consumer recognition, the capital expenditure required to modernize production facilities often outweighs potential returns. This case serves as a reminder of the difficulties inherent in corporate turnarounds.
Original article: 1News — Maketū Pies Ceases Production After Failed Sale Attempt