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 of its private‑label tinned fruit sold under the 'Select' brand from Victoria's SPC Ardmona. The arrangement includes Woolworths injecting $3 million into SPC and builds on an earlier supply of 13 Select canned fruit lines worth $7 million.
The deal is expected to support Victorian fruit growers and SPC’s local operations by underwriting the future of SPC’s Victorian factory. SPC directly employs about 1,500 people and the agreement is linked to a further roughly 2,700 jobs in the Goulburn Valley region.
SPC will supply apples, pears, peaches and apricots for Woolworths' private‑label canned fruit range.
According to the announcement, converting Woolworths’ packaged fruit range to SPC products is expected to save about 50,000 trees in the Goulburn Valley that otherwise may have been ploughed out.
The article says Victorian fruit farmers have faced very poor conditions recently due to a strong Australian dollar hurting exports and a surge of cheap imported fruit. The Woolworths–SPC deal provides a stable buyer for local fruit, reducing the risk of growers being forced off the land or fruit being left to wither or be destroyed.
SPC Ardmona is owned by beverages group Coca‑Cola Amatil. For everyday investors, the ownership link may be relevant when assessing the corporate backing, distribution relationships and potential strategic implications of the supply deal.
The article notes Coles already stocks more than 170 lines from SPC and a separate Coles relationship with an apple and pear grower in Shepparton—who employs about 500 people—enabled that supplier to invest $3 million in a new packing facility. Both supermarkets are forming supply partnerships that support local manufacturing and farming.
Woolworths said the decision to move to 100% Australian‑sourced private‑label canned fruit comes amid criticism that supermarket reliance on private label and overseas suppliers is harming local manufacturers and farmers, and it was announced days before a federal election as part of broader industry and political scrutiny.
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