Woolworths private label signs $7 million deal with SPC Ardmona
Supermarket giant Woolworths has signed a $7 million deal with troubled Australian food manufacturer SPC Ardmona. The deal will see apricots, peaches, apples and pears from Victoria’s Goulburn Valley sold under the Woolworths Select brand.
Woolworths said the deal with SPC Ardmona, which is a subsidiary of Coca-Cola Amatil, will move the supply of the supermarket’s private label fruit from overseas to Australian-grown.
“We are passionate about Australian food,” said Tjeerd Jegen, Managing Director of Supermarkets and Petrol. “Our customers share this passion and have clearly told us that they want us to support Australian producers and manufacturers wherever possible,” he said.
Woolworths said it would also be sourcing three canned pineapple products from Queensland. The products will replace Woolworths Select fruit lines that were previously imported from South Africa and Thailand.
The deal between Woolworths and SPC Ardmona comes amidst an enquiry by the Australian Government’s new Anti-Dumping Commission into the impact of imported fruit and tomatoes on Australian farmers and manufacturers. Australian Food News reported in May 2013 that Coca-Cola Amatil had reported a drop in earnings, in part because of the impact of imported processed fruit on SPC Ardmona’s income.
“Woolworths already range SPC Ardmona’s branded lines (SPC, Goulburn Valley and Ardmona), and they are our single largest supplier of canned fruit,” said Mr Jegen. “They are a great partner and we’re pleased that together we are getting more Aussie canned fruit on our shelves for our customers to enjoy,” he said.