Woolworths and SPC agree on new 3 year deal

Posted by Ian Grinblat on 14th November 2016
Tomato

Woolworths has announced that SPC Ardmona (SPC) has signed a three-year contract to supply an increased volume of deciduous fruit to Woolworths for its private brand.

The announcement came following an earlier report that Woolworths would not honour its AUD $70 million deal signed with SPC in 2014.

The latest deal commits SPC to supply approximately nine million cans of Australian deciduous fruit for Woolworths’ private brand over three years.

The new agreement also means that SPC’s owner, Coca-Cola Amatil, will not have to repay the grant of AUD $22 million, for updating the company’s operations, to the Victorian government.

Woolworths had shocked farmers in the Goulburn Valley with its unexpected announcement early last week that it was cancelling a contract with SPC for the supply of house brand tinned tomatoes and creating speculation about the future of its tinned fruit supply.

However, SPC has reassured the tomato growers of the Goulburn Valley saying that it will honour its verbal agreements to pay them for supplying this season’s crop.Tomato growers had already planted the tomato crop when Woolworths announced that it was cancelling its contract with SPC for the supply of its house brand tinned tomatoes.

Growers have been contacted by the fruit processor and told that even in the absence of written contracts, SPC will also honour all verbal assurances regarding price and quantity.

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