Time's up for SPC at CCA
Thirteen years and $250 million later, Coca-Cola Amatil is selling off SPC after purchasing SPC-Ardmona back in 2005.
When the federal government refused to help SPC in 2014, CCA invested $78 million and the Victorian Government coughed up another $22 million to keep the fruit processor afloat.
This money was spent on a new high-speed snack line, new tomato processing line, aseptic processing technology, a new pouch line and high-care facility and automation.
But even so, the company, which employs about 220 full-time workers in Shepparton and another 1100 people during the picking season, hasn’t been in the black for around a decade. Its value was written down from $328 million to $156 million in 2016.
SPC has enjoyed significant community support for a long time as consumers are disappointed to see a significant rural industry collapse, but this support has not translated into sustained purchases at the supermarket.
Perhaps the days of canned fruit and custard for dessert are simply over.
CCA MD Alison Watkins hopes the buyer will reap the benefits of the 2014 injection of $100 million and believes there are growth opportunities open to SPC, such as entering new markets and creating products.
Having halted their planned sale of IXL jam and Taylor’s marinades to Kyabram Conserves, CCA aims to include these brands as part of the SPC sale.
Privately held New Zealand engineering company Milmeq will be split and sold in the coming months.
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