SPC sees fruitful time ahead

Friday 15 June 2007

SPC Ardmona is negotiating an agreement to source products from South Africa adding to existing joint ventures in Thailand and Spain. The alliances will give SPC the ability to source fruit and vegetables from five countries to sell in international markets, primarily the US and Europe, at significantly lower tariff rates while mitigating the impact of climate and agricultural risk.

At the same time, SPC is using Coca-Cola Amatil’s extensive distribution system in Australia to sell fruit and vegetable products in new places such as petrol stations, schools and convenience stores.

SPC expects the benefits of new business, overseas expansion, cost savings, efficiencies from warehouse consolidation and automated fruit sorting technology to flow through to profits next year.

Nigel Garrard, SPC Ardmona Managing Director, says neither the expansion plans nor the recent $20 million capital investment in warehousing and automation would have been possible if SPCA had remained independent.

Extracts from article in Financial Review