Woolworths has reportedly dropped SPC Ardmona as the supplier of its private label canned tomatoes in favour of a smaller supplier.
The supermarket's new canned tomato supplier is reportedly a local provider that sources its produce from the Murray Valley region in Victoria.
Retail insiders say quality, sizing and supply, and negotiations over pricing, were among the sticking points between Woolworths and SPC, according to a Fairfax Media report.
The move comes just two years after the retailer stepped in to aid SPC Ardmona - which has struggled to compete with cheaper imported products - with a five-year private label fruit deal.
Woolworths said it would continue to support SPC Ardmona, which is owned by Coca-Cola Amatil, by selling its branded tinned tomatoes.
