SPC Ardmona

Shepparton Partners Collective, trading as SPC and formerly SPC Ardmona, is an Australian-based company that specialises in large fruit packing and owns and operates a canning factory in Shepparton. SPCA closed its Mooroopna processing plant in 2011.[1] It sold its Kyabram factory in 2019. It was owned by Coca-Cola Amatil from 2005 until 2019.

History

SPC Ardmona was formed in 2002 by the merger of the for Shepparton Preserving Company (SPC) and Ardmona.[2] SPC was incorporated as a public listed company in 1912, and Ardmona opened in 1921.[2] SPC Ardmona was bought by Coca-Cola Amatil in 2005 for A$520 million. It sold it in 2019 for A$40 million to Shepparton Partners Collective. In that time, CCA had also invested about A$250 million in infrastructure, and the Victorian government had provided A$22 million in co-investment.[3]

SPC Ardmona carries the SPC, Goulburn Valley and Ardmona brands. It acquired IXL and Taylors brands in 2004,[4] and sold both brands with the Kyabram factory in 2019 to a group of farmers and growers in the Goulburn Valley.[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. "Our Rich History". SPC Ardmona. 25 February 2006. Retrieved 11 March 2014.
  3. Gray, Darren (4 June 2019). "Coca-Cola Amatil to sell historic SPC business for $40 million". The Sydney Morning Herald. Retrieved 5 March 2020.
  4. "SPC to acquire IXL for $51 m". The Age. www.theage.com.au. 12 May 2004. Retrieved 11 March 2014.
  5. Robinson, Wayne (23 October 2019). "SPC succeeds with IXL and Kyabram factory sale". Food & Drink Business. Retrieved 5 March 2020.
  6. Heath, Joanna (20 December 2013). "SPC rattles the can". The Land. Retrieved 21 December 2013.
  7. 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. "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. "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.
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