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Weis family speaks out as Unilever closes factory, two years after purchasing business

The Weis family matriarch says she never would have sold to Unilever if she knew it was going to close their Toowoomba factory.

Weis bar cheesecake

The Weis family say they never would have sold their iconic Aussie ice cream business to Unilever if they knew it was going to close the Toowoomba factory where the bars are made.

Unilever purchased the brand from the family in 2017 with the “firm intention” of keeping manufacturing in the Queensland city.

But less than three years later, the $240 billion multinational food giant has announced it will axe more than 90 jobs from the regional community and close the factory in December next year, following a “gradual transition”.

The Weis family say they are “deeply disappointed”. Picture: Supplied
The Weis family say they are “deeply disappointed”. Picture: Supplied

Julie Weis, the former managing director of the Toowoomba factory and daughter of founder Les Weis, said the family had been assured that manufacturing operations would stay local and they were “deeply disappointed” by the decision.

“Keeping the manufacturing local and the jobs was our number one priority in the sale,” Ms Weis told the Courier Mail.

“That did not mean it could never happen, but it is only two years (after the sale).

“This is a sad day for us.”

Production on the popular Weis range, best known for the original Weis bar created by Les in 1957 and sold from his corner store in Toowoomba, will move to Unilever’s Minto factory in NSW.

In the shock announcement on Thursday, Unilever said the “difficult decision” came after an “extensive review of our Australia and New Zealand ice cream business”.

Weis was sold to Unilever in 2017. Picture: Megan Cullen
Weis was sold to Unilever in 2017. Picture: Megan Cullen

“We did not anticipate this decision when we acquired Weis from the Weis family in 2017,” Unilever Australia and New Zealand chief executive Clive Stiff, who informed staff at the factory this morning, said in a statement.

“It was our firm intention to keep manufacturing at Toowoomba, which is why we have made major investments in the site over the past Two-and-a-half years.

“We have also made significant investments in building the brand through marketing, research and development, and increased distribution in Australia and international markets. However, the ice cream market — in terms of costs, competition and distribution channels — has changed very quickly and pressure on our business has significantly increased.

“After an extensive review, it’s become clear that consolidating our Australian ice cream manufacturing operations at Minto is necessary to achieve the benefits of scale and ensure continued strong onshore manufacturing.

The Weis factory closure will affect 93 jobs.
The Weis factory closure will affect 93 jobs.

“This is not a decision we have taken lightly and we recognise that this announcement will affect everyone on site at Toowoomba as well as the local community.

“We have spoken to the Weis family and we appreciate their deep disappointment, and we understand this is not something they would have foreseen when they sold the business to Unilever.

“We are committed to providing consumers with the same exceptional Weis products with the same high-quality natural ingredients. Queensland will also remain a very important part of the Weis brand, and we will continue to support businesses and farmers throughout the State by retaining local fruit sourcing.”

The closure will impact 93 full-time, part-time and casual roles but Unilever says “opportunities will be available should employees wish to transfer to other parts of the Unilever business, including our operations in Sydney”.

“For those whose role is made redundant we will offer significantly more favourable redundancy provisions than the existing enterprise agreement, which was in place before Unilever’s ownership,” Unilever’s statement said.

Weis has been a Toowoomba icon since 1957.
Weis has been a Toowoomba icon since 1957.

“We have also established a dedicated support program to assist employees in preparing for future employment opportunities. As part of that program we will be working with employees to provide re-skilling and upskilling training, interview training, and wellbeing support.”

Unilever says it will work with local employers, employment agencies and government organisations to identify career pathways and support for team members.

“We acknowledge the role the Weis factory has played in the Toowoomba community and are planning to set aside 25 per cent of the proceeds of the future sale of the site for the benefit of the community to ensure the contribution of the factory and its people is remembered and celebrated,” Mr Stiff said.

“All options for this are on the table and we will be consulting with our employees and local community leaders to ensure the funds are spent in a way that best serves the needs of Toowoomba. We are particularly interested in community or institutional groups that support long-term skills development and employment opportunities in the area.

“We want to thank our staff and everyone else who has contributed so much to Weis and its achievements over more than 52 years. Our focus is now on ensuring we fully support our people through a range of measures during this transition.”

Toowoomba Regional Council mayor Paul Antonio told The Chronicle the news came as a shock. “That is devastating news,” he said.

Mr Antonio said Unilever’s comments in 2017 had led him to be “very confident that the Weis factory would continue (operating) well into the future”.

“I just think that’s so sad,” he said.

“The loss of 93 jobs in a place like Toowoomba is significant. Our thoughts are with those who’ve lost their jobs. Given this is an iconic organisation that was really putting Toowoomba on the map, I’m a bit shocked by it.”

frank.chung@news.com.au

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Original URL: https://www.news.com.au/finance/business/manufacturing/so-sad-ninetythree-jobs-lost-as-unilever-closes-weis-factory-two-years-after-purchasing-family-business/news-story/f73c78c65fd87fd67419e51642adbbe9