Woolies in deal to source SPC fruit
The conversion of the supermarket chain's packaged fruit range that sells under its "Select" brand to SPC is expected to save 50,000 trees in the Goulburn Valley that would have otherwise been ploughed back into the ground.
Victoria's fruit farmers have been facing the worst conditions in decades as the soaring Australian dollar decimated export markets while attracting a flood of cheap imported fruit into the country.
In recent months there were fears growers would be forced off the land as fruit that had no buyers would be left to wither on the branches or be destroyed.
A deal unveiled on Wednesday will see Woolworths inject $3 million into SPC, which is owned by beverages group Coca-Cola Amatil. The deal is expected to underwrite the future of SPC's Victorian factory, which directly employs about 1500 people and a further 2700 jobs in the Goulburn Valley.
SPC will supply all the apples, pears, peaches and apricots for the supermarket's private label range.
Woolworths' decision to convert to 100 per cent Australian-sourced product comes as the supermarket industry faces accusations from politicians and pressure groups that the sector's reliance on private label groceries and overseas suppliers is crushing local manufacturers and farmers.
Woolworths said the agreement built on work it had already done to source 13 lines of Select private label canned fruit from SPC, in a deal worth $7 million.
A similar relationship between Coles and an apple and pear grower in Shepparton that employs 500 people has allowed the supplier to invest $3 million in a new packing facility. Coles also stocks more than 170 lines of goods from SPC.
SPC managing director Peter Kelly said the Woolworths contract was a great decision for SPC and growers.
"This commitment to Australian grown and produced products is exactly what the industry and our Australian farmers need."
Frequently Asked Questions about this Article…
Woolworths has agreed to source all its private-label tinned fruit sold under the Select brand from Victoria’s SPC Ardmona, converting the supermarket’s packaged fruit range to 100% Australian-sourced product and building on earlier sourcing arrangements.
Woolworths will inject $3 million into SPC Ardmona. According to the article, the investment is expected to help underwrite the future of SPC’s Victorian factory and support jobs in the Goulburn Valley.
SPC will supply all the apples, pears, peaches and apricots for Woolworths’ private-label canned fruit range sold under the Select brand.
The deal is expected to protect about 1,500 direct jobs at SPC’s Victorian factory and a further 2,700 jobs in the Goulburn Valley, while helping prevent growers from abandoning orchards and saving an estimated 50,000 trees from being ploughed back into the ground.
SPC Ardmona is owned by beverages group Coca‑Cola Amatil. The Woolworths agreement involves SPC as the supplier; the article notes SPC’s ownership but focuses on the supply and investment arrangement rather than any corporate restructuring by Coca‑Cola Amatil.
The article highlights a similar relationship between Coles and a Shepparton apple and pear grower that employs 500 people and invested $3 million in a new packing facility. It also notes Coles stocks more than 170 lines of goods from SPC, showing both major supermarkets have supply arrangements with local growers and SPC.
The timing followed growing criticism of supermarkets’ reliance on private label and overseas suppliers and came days before a federal election. The move responds to pressure to support local manufacturers and farmers, and to address difficult conditions Victorian fruit growers have been facing from export pressure and cheap imports.
For everyday investors, the deal highlights Woolworths’ focus on local sourcing and reputation management, a $3 million investment into SPC that aims to secure manufacturing capacity, and potential regional economic benefits (jobs and orchards preserved). These operational and supply-chain actions can be relevant when watching retailer supplier risk, community relations and Australian manufacturing exposure.
Call 1300 880 160
Start a chat
Schedule a call
