AU: SPC gets reprieve
On Friday night, SPC announced it had signed the contract that will equate to the supply of about nine million cans of Australian deciduous fruit for Woolworths’ private label brand.
It was a relief for SPC’s workers and suppliers after speculation that Woolworths was reviewing the $70million deal it signed with SPC in 2014.
The news is a welcome reprieve after the supermarket giant decided to can a separate agreement to buy tomatoes from SPC for its home-brand Australian tinned tomato lines.
In a statement, SPC said the outcome of the ‘‘annual discussions’’ reflected the strong business partnership between it and Woolworths.
‘‘The vast majority of the Woolworths and SPC partnership relates to SPC’s iconic branded products — in addition to buying our fruit for their private-label franchise,’’ the statement read.
‘‘SPC Ardmona and Woolworths have worked collaboratively and will continue to work together to reduce costs and improve efficiency in our supply chains.’’
Woolworths said it was pleased that the negotiations with SPC had resulted in a positive outcome.
State Member for Shepparton Suzanna Sheed said the outlook appeared optimistic and that she was pleased there was an official deal in place.
‘‘It puts in place a contract and last week we were all surprised to learn the deal was just that and not a contract,’’ Ms Sheed said.
‘‘The remaining three years now will provide certainty and that alone is a good thing.
‘‘I hope it will alleviate some of the anxiety that our workers and suppliers have felt.’’
Committee for Greater Shepparton chief executive Sam Birrell said news of the new agreement somewhat offset the loss of the tinned tomatoes deal.
‘‘It’s good there’s a bit more security around that deal now,’’ Mr Birrell said.
‘‘When that three-year deal is up, it will be the consumer sentiment that drives whatever happens after that.
‘‘This is a call for consumers to make a stand and say ‘we want this locally sourced product’ and hopefully we’ll retain this capacity to manufacture this food in Australia.
‘‘If not, a lot of it could go offshore, and it’s very hard to pull it back once it’s left.’’
State Member for Northern Victoria Wendy Lovell said the latest news was positive, but lamented the loss of the tomatoes deal.
‘‘I would encourage all supermarket chains in Australia to source the produce for their home-brand lines locally,’’ she said.
Ms Lovell said the overwhelming support for SPC from consumers and commentary on social media in the wake of the uncertainty was encouraging, and urged people to continue to buy local.
‘‘The best way to support SPC is to buy their branded products,’’ she said.
Source: www.sheppnews.com.au
