Goodman Fielder is reviewing its separate business divisions nationwide of baking, dairy and home ingredients to bring them under one umbrella.
Recently appointed managing director of Goodman Fielder New Zealand Peter Reidie was in Dunedin yesterday as part of familiarisation tour of Goodman outlets and operations, including those in Dunedin, Invercargill, Oamaru and Nelson.
Nationally, the Goodmans retail division turns over about $1 billion annually.
Mr Reidie said since the Christchurch quakes had disrupted bread production, the Dunedin plant had more than doubled its bread volumes.
It was at present working 24 hours a day, six days a week, supplying 55% of the South Island's bread, which includes the supermarkets operated by Foodstuffs South Island and Progressive Enterprises.
"In the short term there is the capacity, but for any longer period there would need to be redevelopment [in Dunedin]," Mr Reidie said.
Redevelopment was being considered, but it would be six months before decisions were finalised on integration of the three existing divisions, and where investment could be directed at individual sites.
One of the considerations for redevelopment in Dunedin was distribution costs to Canterbury, he said.
Goodman has seven sites in the North Island, one of which is scheduled to be closed shortly, plus the South Island businesses, including Quality Bakers Dunedin, which was formerly the Wholesome brand.
Mr Reidie (49) is originally from Southland and holds a degree in economics from the University of Otago. He said he hoped the three divisions' integration would create opportunities in the South, as opposed to restructuring proposals at some sites.
Goodman has recently said it was considering baking bread with a 10-day shelf life, using natural ingredients and new packaging techniques.
Mr Reidie said that development was being explored more for the Australian market, with its larger long-distance distribution issues. Any changes would happen in Australia first and research would be undertaken to decide whether New Zealand consumers would be "comfortable" with any introduction of bread with 10-day shelf life, as opposed to the present three-day life.
Goodman is also one of the largest suppliers of milk in the country.
Following the controversy of Australian supermarkets selling milk at a loss to entice customers, Mr Reidie that ploy "was not in anyone's interests".
Producers would not invest in product research, development and technology for a product used as a "loss leader", and "the consumer is ultimately worse off," without that development, he said.
