Parliament

SPC Ardmona-Woolworths deal

November 09, 2016

Members statement

I rise to raise my concerns regarding the deal struck between SPC and Woolworths in 2014.

It was distressing to learn that the supermarket giant was reviewing its agreement with our local homegrown company, a company which has been an icon in the Shepparton district since 1917.

It is an agreement being disregarded only two years into what was a five-year, $70 million handshake, making it well beyond a huge disappointment, with ripples across the Goulburn Valley.

A Woolworths spokesperson was quoted in the Herald Sun yesterday stating the company regularly reviews its sourcing agreements to ensure it is getting great produce at the best value for its customers, but at what cost? The headlines alone drive uncertainty through the fruit-growing community, as orchardists hear the echo of 2012, when SPC was forced to axe contracts just as orchardists were preparing trees for the next season.

The supermarket deal was struck in 2014 when SPC was in dire straits. The then Napthine government financed $22 million, with SPC's parent company, Coca-Cola Amatil, investing a further $78 million to ensure the icon would remain. The Australian community rallied, the social media campaign #SPCSunday took off and sales of SPC products soared by more than 50 per cent in one week. People want Australian produce. When they pick up a can of fruit they want to know that it is clean, quality fruit, and the best way they can ensure that is by buying smart and buying local. Here we see Woolworths failing to stand by a five-year deal when it should be securing future contracts for Australian-made produce.

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  • Suzanna Sheed
    published this page in Parliament 2018-08-30 12:29:19 +1000