Coca-Cola Amatil has formally announced its intention to sell its loss-making canned fruit business SPC following a strategic review of the business.
The IXL and Taylor’s brands will also now remain with SPC with their expected sale to Kyabram Conserves no longer proceeding, the company says.
CCA managing director Alison Watkins has told investors the 2018 strategic review of SPC had concluded with a decision to proceed toward divestment.
SPC was expected to record a full year loss in 2018 of around $10 million, she said, resulting in an overall loss for the company's Corporate, Food & Services segment.
“We believe there are many opportunities for growth in SPC, including new products and markets, further
efficiency improvements, and leveraging technology and intellectual property,” Watkins said.
“The review has concluded that the best way to unlock these opportunities is through divestment, enabling SPC to maximise its potential with the benefit of the recent $100 million co-investment while Amatil sharpens its focus as a beverages powerhouse.
“There are no plans to close SPC. We see a positive future for the company as it continues to transform its
operations.”
