SPC Ardmona

History

The Shepparton Preserving Company is the full name of SPC. SPC Ardmona was formed in 2002 by the merger of the former Shepparton Preserving Company (SPC) and Ardmona. SPC was incorporated as a public listed company in 1912, and Ardmona opened in 1921. The company is currently owned by Coca-Cola Amatil in an acquisition that was finalised on 25 February 2005.

SPC Ardmona carries the SPC, Goulburn Valley, Ardmona, IXL, and Taylors brands.

Financial issues

In October 2013, the company sought financial assistance to modernise from the Federal and Victorian governments. SPCA requested A$ 50 million, including 25 million pledged to it by Kevin Rudd 4 days before the last Federal election. It wants the Victorian Government to match the Federal grant.

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. A former Coca-Cola Asia executive, Peter Kelly, went to the company in April 2013 to attempt to turn it around.

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. Shortly afterwards however, the Victorian Government announced that $22 million would be provided.

In November 2016 Woolworths ended their contract with SPCA for the supply of tinned tomatoes and would not renew it. However the 5-year deal to provide tinned fruit is still ongoing.

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 5 years. They will supply Woolworths with beans, canned tomato soups and all its home brand fruit.

Peter Kelly, SPCA managing director, said that Australian consumers are buying more fruit in response to the companies problems, with sales in the first 2 months of 2014 up by 60% at Woolworths alone.