November 30, 2018
Coca-Cola Amatil has told shareholders in Sydney it has decided to sell off its fruit, veges and baked beans packager SPC.
The news, announced on Friday, follows a statement to the ASX in August that CCA had begun a strategic review of “growth options” for SPC.
This review coincided with the end of a four-year $100 million bailout of SPC run in conjunction with the Victorian State Government to stop job losses at the struggling canner.
CCA invested $78 million and the Victorian Government $22 million in the project to modernise SPC’s Shepparton plant and explore export opportunities.
The bailout followed a sustained campaign by growers and SPC workers – assisted by Katter’s Australia Party – in 2013 which included a protest in Kingaroy where SPC’s navy beans are processed.
CCA Group Managing Director Alison Watkins said on Friday she believed there were many “opportunities for growth” in SPC, including new products and markets, further efficiency improvements and “leveraging technology and intellectual property”.
“The review has concluded that the best way to unlock these opportunities is through divestment, enabling SPC to maximise its potential,” Ms Watkins said.
“There are no plans to close SPC. We see a positive future for the company as it continues to transform its operations.”
The IXL and Taylor’s brands will remain at SPC following the announcement last week that a sale to Kyabram Conserves had fallen through.
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