SPC Ardmona

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

In October 2013, the company sought financial assistance to modernise from the Federal and Victorian governments. SPCA requested A$ 50 million, including 25 million pledged to it by Kevin Rudd 4 days before the last Federal election. It wants 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]

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 5 years.[10] They will supply Woolworths with beans,[11] canned tomato soups and all its home brand fruit.[12]

Peter Kelly, SPCA managing director, said that Australian consumers are buying more fruit in response to the companies problems, with sales in the first 2 months of 2014 up by 60%[10] at Woolworths alone.[11]

References

  1. ↑ Mitchell, Sue (2013-05-01). "Canning not so peachy". The Land. Retrieved 2013-12-21.
  2. 1 2 3 "Our Rich History". SPC Ardmona. 2006-02-25. Retrieved 2014-03-11.
  3. ↑ "CCA Acquires SPC Ardmona". Archived from the original on September 30, 2009. Retrieved 2009-12-01.
  4. ↑ "SPC to acquire IXL for $51 m". The Age. www.theage.com.au. 2004-05-12. Retrieved 2014-03-11.
  5. ↑ "SPC Ardmona - Healthy Brands". Retrieved 2014-03-11.
  6. ↑ Heath, Joanna (2013-12-20). "SPC rattles the can". The Land. Retrieved 2013-12-21.
  7. 1 2 Neales, Sue (2013-10-05). "Without a $25m pledge, SPC `risks going under". The Australian. Retrieved 2013-12-21.
  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. 1 2 "SPC Ardmona signs $70m deal with Woolworths to supply fruit and vegetables". ABC News (Australian Broadcasting Corporation). Abc.net.au. 2014-03-11. Retrieved 2014-03-11.
  11. 1 2 "SPC wins $70m Woolworths deal". The Australian. theaustralian.com.au. AAP. 2014-03-11. Retrieved 2014-03-11.
  12. ↑ Hartge-Hazelman, Bianca (2014-03-11). "SPC Ardmona signs $70m Woolies deal". The Sydney Morning Herald. Smh.com.au. Retrieved 2014-03-11.

External links


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