$70m agreement gives SPC Ardmona a boost

SPC Ardmona has received a much-needed boost in the form of a five-year partnership with Woolworths. The $70 million agreement will see an extra 24,000 tonnes of fruit, tomatoes and navy beans sourced locally.

SPC Ardmona Managing Director Peter Kelly says the partnership could help to mitigate the major decline in SPC’s profitability, which he says is caused by illegal dumping, unfair tariffs and the strength of the Australian dollar over a longer period.

“The share of Australian tomatoes has declined 67% in the last ten years. SPC’s new partnership with Woolworths means the tonnage of Australian-grown tomatoes will triple over the next five years which will help resurrect our tomato industry so it’s a particularly great day for tomato growers,” Kelly said.

It seems that SPC’s frequent mentions in the media have prompted Australian consumers to buy Australian made and grown products. The #SPCsunday twitter campaign has also boosted sales.

“Woolworths has really embraced the fact that Aussie consumers are demanding more and more homegrown products. Consumers really do care where their food comes from,” said Kelly.

“In Woolworths alone, we’ve seen a 60% increase in sales of SPC fruit in the first two months of this year so we’re hoping this will continue and move to our other great brands like Taylor’s Sauces and Soups, IXL Jam and Goulburn Valley. We are very grateful for the unprecedented loyalty being shown for our brands from everyday Australian consumers.”

The companies say the additional volume required to meet the needs of the partnership will require the equivalent of 86,000 fruit trees in the Goulburn Valley - good news for struggling local growers.

The agreement will also triple the tonnage of Australian-grown tomatoes that SPC supplies to Woolworths, with new ranges of Woolworths Select and SPC canned tomatoes available in stores in October.

From 2015, SPC will supply all fruit for Woolworths Select fruit snacks and jelly snacks. In addition, for the next five years, SPC will continue to supply 100% of the fruit for the Woolworths Select multi-serve fruit range.

Woolworths says it will be highlighting Australian made and grown products to help consumers who are looking to buy Australian. The new partnership builds on a 2013 agreement between the two companies that Woolworths would source 100% Australian-grown and SPC-sourced apricots, peaches, apples and pears under its Select brand.