SPC Ardmona to supply fruit to supermarket giant Woolworths in a multi-million dollar lifeline deal

UPDATE: SPC Ardmona will supply fruit to supermarket giant Woolworths in a $70m deal, throwing a lifeline to hundreds of fruit growers across Shepparton.

SPC Ardmona has been thrown a lifeline deal from Woolworths.

SPC Ardmona will supply fruit to supermarket giant Woolworths in a multi-million dollar deal, throwing a lifeline to hundreds of fruit growers across Shepparton.

Under the $70m, five year deal, SPC Ardmona will provide fruit to Woolworths' Select home brand products and Australian canned tomatoes, boosting annual production by five per cent.

An extra 24,000 tonnes of fruit, tomatoes and navy beans will be sourced locally for SPC.

The game changing contract was signed just a week after the Victorian Government struck a $22m assistance package with Coca-Cola Amatil to upgrade facilities at the struggling cannery.

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Deputy Premier Peter Ryan said the announcement will reinvigorate regional manufacturers.

"This vindicates the decision by the Victorian Coalition government to support the company and the people of the Goulburn Valley," Mr Ryan said.

"This is great news for regional manufacturing jobs, harvesting jobs and for growers."

SPC Ardmona has been thrown a lifeline deal from Woolworths.

SPC Ardmona Managing Director Peter Kelly took to Twitter last night, saying: "Hi everyone, we've got big news tomorrow about a retailer going all out to support #SPC. Stay tuned ..."

The deal was confirmed in The Australian, with Kelly saying the move was a vote of confidence.

"This is tremendously positive; it is a sign from Woolworths that they have the confidence with the actions we are taking and the way we have played the game."

He said consumer enthusiasm had seen an increase in sales of its products and had helped support the battling industry.

"In many ways, not getting the federal money has worked in our favour because it raised public awareness (of our plight) and so many consumers clearly though that, unlike the government, this company should be supported," Mr Kelly said.

Staff at SPC Ardmona.

Woolworths cleared out its imported home brand tinned fruit around Christmas. A supermarket source said the move was to make way for a homegrown replacement.

The mayor of Greater Shepparton City Council, Jenny Houlihan, last night said growers would be popping champagne corks today as news spread of the deal.

But she blasted the Federal Government for not stepping in to assist the cannery sooner.

The Abbott government rejected a plea from Coca-Cola Amatil for a $25m bailout. "I believe they gambled on our future and we are just lucky that in the end the Victorian Government's help was enough to help land this deal and justify its (the Federal Government's) position,'' she said.

"All along we fought really hard knowing these sort of things were possible. This is going to be one of many positive stories coming from SPC Ardmona.''

SPC's 156 fruit growers will now be required to boost productivity to help the Shepparton-based company.

The cannery has ambitions to become 20 per cent more productive and introduce new products as part of its modernisation plans.

SPC executives inside the cannery.