Coca-Cola Amatil has decided to sell SPC following a review of the Victorian food unit.
Managing director Alison Watkins says Coca-Cola Amatil aimed to offload IXL jam and Taylor’s marinades as part of the SPC business, having halted their planned sale to Kyabram Conserves last month.
She said Coca-Cola Amatil believed there were growth opportunities open to SPC, such as entering new markets and creating products.
“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,” Ms Watkins said on Friday.
“There are no plans to close SPC: we see a positive future for the company as it continues to transform its operations.”
Coca-Cola Amatil, which has owned SPC since 2005, said it expects the business to record a full-year loss in 2018 of approximately $10 million, resulting in an overall loss for its corporate, food and services segment.
Coca-Cola Amatil shares slumped by as much as 12 per cent in early trade, falling to a six-month low.
APC employs about 220 full-time workers at a plant in Shepparton and another 1,100 people during the picking season.
It had been under review since August following a four-year investment program, with the Victorian government pumping in $22 million of a total $100 million.
Founded in Hobart by Henry Jones in 1891, IXL is the second highest selling jam brand in Australia behind the Heinz-owned Cottee’s.
SPC had announced it would be divesting the brand, along with Taylor’s, in January.
At 1028 AEDT, Coca-Cola Amatil shares were $1.20, or 11.9 per cent, lower at $8.90.