"Foodstuffs has invested $10 million into its Otago business in the last three years and the region will continue to play an integral part in the company's distribution network."
The product mix handled in Dunedin might change, but the importance of its function would not, he said.
Dunedin would become a true regional distribution centre for volume products only, with low volume products being centralised in the new Hornby centre.
While planning for the new Hornby centre was in its early stage, Mr Anderson was confident all staff would retain their jobs.
The new 25,000sq m Hornby building would adjoin an existing 13,000sq m facility, nearly doubling the size of the company's existing centre in Papanui.
"Hornby is now the distribution hub of the South Island due to its proximity to state highways north and south, plus the Port of Lyttelton."
Foodstuffs operates the New World, Pak 'N Save and Four Square brands.
