Coca-Cola Amatil has today announced the commencement of a strategic review of growth options for SPC – Australia’s leading processor of packaged fruit and vegetables.
Group Managing Director of Coca-Cola Amatil, Ms Alison Watkins, said the review coincides with completion of a four-year, $100 million co-investment in SPC in conjunction with the Victorian Government. Investment under this agreement was completed in June 2018 and included $22 million by the Victorian Government and $78 million by Coca-Cola Amatil.
“As we said at the time, without this investment the future of Australia’s best-loved packaged fruit and vegetable brands were in question,” Ms Watkins said.
“With this investment we kept SPC operating, invested in modernising the plant and created new business opportunities.
“These included new tomato and high-speed snack lines, a new aseptic fruit processing system and new export opportunities including China, all of which will support ongoing growth.
“The co-investment is complete, and now is the right time to consider options for the business.
“We believe there are many opportunities for growth in SPC, including new products and markets, further efficiency improvements, and technology and intellectual property. The review will look at how this growth could be unlocked, potentially through a change in ownership, alliances or mergers.
“Importantly, there are no plans to close SPC. We see a positive future for SPC as it continues to transform its operations.”
SPC is recognised as one of Australia’s most-loved brands, and is a household name in fruit, vegetables, baked beans and spaghetti. More recently, SPC expanded its range into specialised age-care products and premium sales in export markets.
Since acquiring SPC in 2005, Coca-Cola Amatil has invested around $250 million of capital in the business, including in technology and equipment.
Coca-Cola Amatil has engaged consultancy Kidder Williams to assist with the strategic review.
The review of SPC does not affect an ongoing sale process relating to Taylors and IXL brands, which was announced by SPC in early 2018. https://www.marketscreener.com/COCA-COLA-AMATIL-LTD-