Please note: this is an archived news article release

This article was published on Tuesday, 8 November, 2016. The information contained within may be out of date or inaccurate. News articles and media releases older than 60 days are archived for future reference.

Woolworths potential wavering of support for SPC

Posted on Tuesday 8th of November, 2016,

Current media reports indicate that Woolworths is potentially reviewing its five year agreement to purchase 24,000 extra tonnes of produce from SPC with a preference to source cheaper and lower quality products from alternative suppliers.

The agreement, struck in March 2014, was vital in supporting the on-going viability of SPC, with any potential abandonment of the agreement posing a risk to the operations of the company.

The 2014 commitment by Woolworths to SPC was based on the premise that consumers really do care where their food comes from as indicated by the unprecedented loyalty demonstrated for SPC and Australian brands during the save SPC campaign. To date only two years of the agreement have been honoured. Woolworths have received unprecedented support from Australian consumers who recognised and rewarded the commitment demonstrated by Woolworths to Australian growers and manufacturers. Woolworths should now demonstrate to their consumers that this commitment will be honoured.

“It will be extremely disappointing if Woolworths fail to adhere to the SPC agreement just two years into a five year deal”, suggests Greater Shepparton City Council CEO Mr Peter Harriott. “While Council is not privy to the negotiations between the two companies we strongly advocate that the agreement is honoured. Woolworths played a vital role in salvaging SPC along with the Victorian Government and parent company Coca-Cola Amatil, and their on-going support is critical to the future of the company.”

The $36 million state-of-the-art tomato processing plant was created in anticipation of the growth in demand for home grown, superior quality tomatoes over imported products and as a means to diversify the business.

The transformation of the plant was made possible with a $22 million co-investment from the Victorian Government with the stipulation that SPC guarantee full-time employment for at least 500 people at its facility. Any potential reneging on the agreement between Woolworths and SPC will jeopardise manufacturing growth potential within the Goulburn Valley.

“Again we implore Woolworths to continue to show leadership in the support for Australian and in particular Goulburn Valley products, companies and producers by following through on the five-year agreement with SPC”, contends Mr Harriott. “Council and the Greater Shepparton community have rallied behind SPC in the past and will continue to support SPC as an important asset to our economy and our community as a whole. We celebrated Woolworths' support for SPC two years ago and we trust that in good faith and in continued support for Goulburn Valley grown and manufactured products that Woolworths will continue to honour the agreement.”

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