SPC wants fruit growers planting more trees

Victorian fruit cannery and agribusiness SPC is hoping to lure growers into planting more trees to supply its growing product range.

SPC chief executive Rob Giles is hoping to entice fruit growers to expand their businesses.

CENTURY-old fruit cannery SPC is looking to move from annual procurement arrangements with fruit farmers to longer-term contracts as it seeks to grow its reach overseas.

The fruit and vegetable processor was purchased by Sydney-based private equity companies Perpetuity Capital and The Eights for $40 million last year with plans to boost production and develop new products.

SPC chief executive Robert Giles said the company had performed “exceedingly well” this year given its range of products with a long shelf life, and it was time it began giving more certainty to Victorian growers who supply it with its canning fruit.

“How do we move into longer term arrangements around particular fruits? We now have internal personal working on strategic sourcing. It’s historically been a year-to-year (arrangement, but) we want longer term contracts. Hopefully this will encourage growers to plant more trees,” Mr Giles said.

SPC’s biggest peach and pear supplier Matthew Cornish said he was buoyed by the company’s positivity, and hoped any longer-term arrangements would be matched by price rises for growers.

“They’re investing in the business and buying side businesses, so that’s good for growers to see. But we need to see more movement on the price side,” Mr Cornish said,

The move to securing long-term supply comes as SPC launched a new corporate brand that will feature on all products in the company’s umbrella, including SPC, Goulburn Valley, Ardmona and ProVital. It will also extend to its recent acquisitions, Sydney-based prepared meals business Kuisine Group’s products and pomegranate brand PomLife.

The rebranding features a dynamic sun, to symbolise its new corporate motto: “It’s time for better”.

SPC chairman Hussein Rifai said it was an exciting time for the iconic Australian business. “We’re building a global company that will play a positive role in feeding the world. Paying respect to our heritage, we will nurture our roots here in Australia; deepen them and branch out to ensure we reach the rest of the world,” he said.

SPC is currently in the process of a $100 million capital raising via a share placement offer. The move is designed to broaden its shareholder base ahead of a float on the Australian Securities Exchange next year.

MORE

SPC BUYS KUISINE GROUP AHEAD OF CAPITAL RAISING

SPC AND DÖHLER SIGN OFF ON NEW JOINT VENTURE

SPC IN JOINT VENTURE WITH WATTLE HEALTH