Coca-Cola Amatil to review growth options for fruit processor SPC

Australia’s Coca-Cola Amatil has commenced a strategic review process of its packaged fruit and vegetable processing business unit SPC.

SPC offers a wide range of food products, including fruit, vegetables, baked beans, and spaghetti.

The company recently expanded its range into specialised age-care products and premium sales in export markets.

Coca-Cola Amatil acquired SPC in 2005 and has invested nearly A$250m ($183m) of capital in the business, including in technology and equipment.

For carrying out the strategic review, Coca-Cola Amatil appointed Melbourne-based financial consultancy Kidder Williams.

Coca-Cola Amatil Group managing director Alison Watkins said that the review corresponds with the completion of a four-year A$100m ($73.5m) co-investment in SPC in conjunction with the Government of Victoria.

Investment under this agreement was completed in June, which included A$22m ($16.1m) by the Victorian Government and A$78m ($57.4m) by Coca-Cola Amatil.

Watkins said: “As we said at the time, without this investment, the future of Australia’s best-loved packaged fruit and vegetable brands were in question.

“With this investment, we kept SPC operating, invested in modernising the plant and created new business opportunities. These included new tomato and high-speed snack lines, a new aseptic fruit processing system, and new export opportunities, including China, all of which will support ongoing growth.

“We believe there are many opportunities for growth in SPC, including new products and markets, further efficiency improvements, and technology and intellectual property.”

The review process will identify growth opportunities, potentially through a change in ownership, alliances or mergers.

The company noted that it has no plans to close SPC and the review will not affect the ongoing process relating to the sale of Taylors and IXL brands that were announced by SPC earlier this year.