SPC Ardmona

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SPC Ardmona (SPCA) is an Australian-based company that specialises in large fruit packing and owns and operates a canning factory in Shepparton, and another factory in Kyabram Victoria. SPCA closed its Mooroopna processing plant in 2011.[1] It has many workers and is one of the main sources of income for that area.

SPC Ardmona was formed in 2002 by the merger of the former Shepparton Preserving Company (SPC) and Ardmona.[2] SPC was incorporated as a public listed company in 1912, and Ardmona opened in 1921.[2] The company is currently owned by Coca-Cola Amatil in an acquisition that was finalised on 25 February 2005.[2][3]

SPC Ardmona carries the SPC, Goulburn Valley, Ardmona, IXL,[4] and Taylors brands.[5]

Financial issues[edit]

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.[6]

SPCA will lose $25 million in 2013 compared to a $70 million profit 8 years earlier. In 2012 SPCA disposed of $100 million of fruit bought under contract because it could not be sold. "Plummeting" local and export orders were blamed.[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] Recently afterwards however, the Victorian Government announced that $22 million will be provided.[9]

Turnaround[edit]

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.[10] They will supply Woolworths with beans,[11] canned tomato soups and all its home brand fruit.[12]

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%[10] at Woolworths alone.[11]

References[edit]

  1. ^ Mitchell, Sue (2013-05-01). "Canning not so peachy". The Land. Retrieved 2013-12-21. 
  2. ^ a b c "Our Rich History". SPC Ardmona. 2006-02-25. Retrieved 2014-03-11. 
  3. ^ "CCA Acquires SPC Ardmona". Retrieved 2009-12-01. [dead link]
  4. ^ "SPC to acquire IXL for $51 m". The Age (www.theage.com.au). 2004-05-12. Retrieved 2014-03-11. 
  5. ^ "SPC Ardmona - Healthy Brands". Retrieved 2014-03-11. 
  6. ^ Heath, Joanna (2013-12-20). "SPC rattles the can". The Land. Retrieved 2013-12-21. 
  7. ^ a b Neales, Sue (2013-10-05). "Without a $25m pledge, SPC `risks going under". The Australian. Retrieved 2013-12-21. 
  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. ^ a b "SPC Ardmona signs $70m deal with Woolworths to supply fruit and vegetables". ABC News (Australian Broadcasting Corporation) (Abc.net.au). 2014-03-11. Retrieved 2014-03-11. 
  11. ^ a b "SPC wins $70m Woolworths deal". The Australian (theaustralian.com.au). AAP. 2014-03-11. Retrieved 2014-03-11. 
  12. ^ Hartge-Hazelman, Bianca (2014-03-11). "SPC Ardmona signs $70m Woolies deal". The Sydney Morning Herald (Smh.com.au). Retrieved 2014-03-11. 

External links[edit]