SPC Ardmona

SPC Ardmona, trading as SPC, is an Australian-based company, owned by parent company Coca Cola Amatil that specialises in large fruit packing and owns and operates a canning factory in Shepparton and Kyabram. SPCA closed its Mooroopna processing plant in 2011.[1]

History

The Shepparton Preserving Company is the full name of SPC.
SPC Ardmona was formed in 2002 by the merger of the former Shepparton Preserving Company (SPC) and Ardmona.[2] SPC was incorporated as a public listed company in 1912, and Ardmona opened in 1921.[2] The company is currently owned by Coca-Cola Amatil in an acquisition that was finalised on 25 February 2005.[2][3]

SPC Ardmona carries the SPC, Goulburn Valley, Ardmona, IXL,[4] and Taylors brands.[5]

Financial problems

In October 2013, the company sought financial assistance from the Federal and Victorian governments to modernise it operation. SPCA requested A$ 50 million, including 25 million pledged by the then prime minister, Kevin Rudd, four days before the 2013 federal election. It wanted the Victorian Government to match the Federal grant.[6]

SPCA lost $25 million in 2013, compared to a $70 million profit 8 years earlier. In 2012, SPCA disposed $100 million of fruit bought under contract because it could not be sold, blaming it on “plummeting” local and export orders.[7] A former Coca-Cola Asia executive, Peter Kelly, went to the company in April 2013 to attempt to turn it around.[7]

In early 2014, SPCA sought $25 million of government assistance as part of a plan to upgrade the Shepparton cannery. The proposal was later rejected by the Abbott Government.[8] Shortly afterwards however, the Victorian Government announced that $22 million would be provided.[9]

In November 2016, Woolworths ended its contract with SPCA for the supply of tinned tomatoes and would not renew it. However, the five-year deal to provide tinned fruit was ongoing. [10]

Turnaround

In March 2014, SPCA signed a deal with Woolworths to supply an extra 24,000 tonnes (53,000,000 lb) of local product, worth $70 million, over five years.[11] They will supply Woolworths with beans,[12] canned tomato soups and all its home brand fruit.[13]

Peter Kelly, SPCA managing director, said that Australian consumers were buying more fruit in response to the company’s problems, with sales in the first 2 months of 2014 up by 60%[11] at Woolworths alone.[12]

In June 2019, it was announced that Coca-Cola Amatil had sold the SPC business to a group called Shepparton Partners Collective, for $40 million. Shepparton Partners Collective is a joint venture between Perma Funds Management, a boutique investment house, and The Eights, a private equity firm. The sale was subject to a four-year deferred payment which, subject to business performance, could generate a further $15 million for Coca-Cola on top of the money paid up-front.[14]

References

  1. ^ Mitchell, Sue (1 May 2013). “Canning not so peachy”. The Land. Retrieved 21 December 2013.
  2. ^ a b c “Our Rich History”. SPC Ardmona. 25 February 2006. Retrieved 11 March 2014.
  3. ^ “CCA Acquires SPC Ardmona”. Archived from the original on 30 September 2009. Retrieved 1 December 2009.
  4. ^ “SPC to acquire IXL for $51 m”. The Age. www.theage.com.au. 12 May 2004. Retrieved 11 March 2014.
  5. ^ “SPC Ardmona – Healthy Brands”. Retrieved 11 March 2014.
  6. ^ Heath, Joanna (20 December 2013). “SPC rattles the can”. The Land. Retrieved 21 December 2013.
  7. ^ a b Neales, Sue (5 October 2013). “Without a $25m pledge, SPC `risks going under”. The Australian. Retrieved 21 December 2013.
  8. ^ Packham, Ben. “Abbott government rejects aid package for SPC Ardmona”. The Australian. Retrieved 7 February 2014.
  9. ^ Whittaker, Jarrod (11 March 2014). “$22m lifeline for SPC Ardmona”. Shepparton News. Retrieved 13 February 2014.
  10. ^ staff, Guardian; agencies (8 November 2016). “Woolworths walks away from SPC Ardmona deal on tinned tomatoes”. The Guardian. ISSN 0261-3077. Retrieved 5 January 2017.
  11. ^ a b “SPC Ardmona signs $70m deal with Woolworths to supply fruit and vegetables”. ABC News (Australian Broadcasting Corporation). Abc.net.au. 11 March 2014. Retrieved 11 March 2014.
  12. ^ a b “SPC wins $70m Woolworths deal”. The Australian. theaustralian.com.au. AAP. 11 March 2014. Retrieved 11 March 2014.
  13. ^ Hartge-Hazelman, Bianca (11 March 2014). “SPC Ardmona signs $70m Woolies deal”. The Sydney Morning Herald. Smh.com.au. Retrieved 11 March 2014.
  14. ^ Gray, Darren (4 June 2019). “Coca-Cola Amatil to sell historic SPC business for $40 million”. The Age. Retrieved 4 June 2019.

External links