Strategic review offers bright future for SPC
SPC today welcomed a strategic review of growth options for the company, with Managing Director Reg Weine saying the recent $100 million modernisation program meant SPC was well placed to expand its core portfolio and take on new categories and markets.
The strategic review was announced by Coca-Cola Amatil ahead of its 2018 half-year results presentation in Sydney this morning.
Mr Weine said a four-year $100 million co-investment program, funded by Coca-Cola Amatil and the Victorian Government, had modernised SPC’s tomato and snack cup production as well as a new aseptic fruit processing system and pouch line at the Shepparton site.
Investment under this agreement was completed in June 2018 comprising $22m from the Victorian Government and $78m from Coca-Cola Amatil.
During this time SPC also expanded its export range through a partnership with China State Farms Agriculture Holdings Shanghai Corporation. SPC has been in international markets for more than 50 years, including in New Zealand, USA, UK, Europe, Southeast Asia, Japan and the Middle East. Export sales across ten countries currently comprise around 10 per cent of SPC earnings.
“We’re proud of our achievements over the last four years, and there’s a bright future ahead of us in the outcomes of this review,” Mr Weine said.
Recent SPC achievements include:
- Growing market share in tomatoes, baked beans & spaghetti
- Entering the functional food category with world first innovation of ProVitalTM
- Significant capital investment in a new high-speed snack line, new tomato processing line, aseptic processing technology, new pouch line and high care facility and automation.
“We thank the dedicated team at SPC for their efforts to date in transforming the business and we’ll keep them updated as the review progresses,” Mr Weine said.
“Our focus is very much on how we can expand SPC’s premium product range under the Goulburn Valley brand and increase exports while growing our core portfolio.
“The review gives us the chance to examine these issues and determine if our current internal and ownership structures are best placed to achieve them.
“We’ve made some great progress at SPC, but I’m confident we can do more and we welcome the chance to explore the options.”
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