February 13, 2014
Today’s announcement that Coca-Cola Amatil and the Victorian Government have stitched together a new $100 million investment plan to assist the future of SPC Ardmona in Shepparton could be good news for Kingaroy-based Bean Growers Australia.
Between 15 and 20 per cent of BGA’s production is navy beans, all of which is shipped to SPC Ardmona to become baked beans.
The closure of the Shepparton plant – which looked likely after the Federal Government rejected a request for $25 million assistance by CCA – would have spelt the end of the Australian navy bean industry.
But CCA announced today it would invest $78 million into SPC Ardmona and welcomed the decision by the Victorian Government to invest $22 million over three years.
The Victorian Government’s participation is conditional upon CCA entering into a formal legal agreement which will set out the investment milestones upon which the financial assistance will be provided.
This will include the condition of employment being maintained at a minimum level of 500 full-time equivalent employees for three years, and the $78 million contribution by CCA to the overall project cost.
CCA will also agree to refund all payments made under the agreement should SPC Ardmona cease business operations at Shepparton within five years of the agreement.
The total combined $100 million package will be invested over three years into efficiency measures and innovation at SPC Ardmona, the last remaining major fruit and vegetable processor in Australia.
“We are delighted with the support shown for our business case by Premier Denis Napthine, Deputy Premier Peter Ryan and their government for the future of this important food industry,” SPC Ardmona Managing Director Peter Kelly said.
“They have been unwavering in their determination to help the Goulburn Valley and have played a critical role in assisting us with our transformation plans for the business from a cannery to a modern food company.
“This $100 million capital investment package, while not the amount we originally planned, is significant and will be immediately put to work by our business to drive new product and packaging innovation and efficiency measures.”
It has been estimated that more than 2500 jobs in the Goulburn Valley region are reliant on the ongoing operations of SPC Ardmona.
Mr Kelly said that while the new investment package would mean adjustments to the business plan, he paid tribute to what he said were unprecedented levels of support from the broad Australian community for SPC Ardmona and its brands: SPC, Ardmona, Goulburn Valley, Taylor’s, IXL and Henry Jones.
“We are seeing a magnificent surge of support from retailers and consumers who are choosing to stock and buy our iconic Australian brands over cheap imports,” Mr Kelly said.
“Sales of our key SPC Ardmona products in major supermarkets soared on the back of last weekend’s phenomenal grassroots #SPCSunday social media campaign which generated several thousand tweets and a staggering 15 million impressions as well as 3000 new SPCA Facebook friends.
“While consumers are rallying behind us, retailers all over the country have been fantastic, too. We have been receiving offers of new business and more in-store support – ideas like Australian-made sections on shelf.”
- Related article: Knockback Could End An Industry
