Page 6 - Food & Drink Business Magazine September 2018

NEWS
Coca-Cola
Amatil
considers
SPC sale
COCA-COLA Amatil (CCA) has commenced a strategic review
of its fruit business SPC and
says it is ‘exploring new options’ including a change in ownership, alliances or mergers.
SPC is Australia’s largest packaged fruit and vegetables processor, and the news comes at the completion of a four-year, $100 million co-investment in SPC with the Victorian Government.
CCAs group managing director Alison Watkins said the co- investment agreement was completed in June and included $22m from the Victorian Government and $78m from CCA which went into modernising the plant and creating new business opportunities to support SPC’s ongoing growth.
“As we said at the time, without this investment, the future of Australia’s best-loved packaged fruit and vegetable brands were in question,” Watkins said.
“We believe there are many opportunities for growth in SPC, including new products and markets, further efficiency improvements, and technology and intellectual property. “Importantly, there are no plans to close SPC. We see a positive future for SPC as it continues to transform its operations,” Watkins said.
CCA has invested around $250 million of capital in the business overall since acquiring SPC in 2005, but this has failed to translate into profits for the fruit processor, which according to CCA’s results announcement today, booked a loss of $1.7 million in the half year to June 29.
Simplot exits frozen meals category
SIMPLOT Australia has announced it will leave the frozen meals category –
which includes the Lean Cuisine brand – and is considering closing its Pakenham meal manufacturing facility.
Simplot entered the meals market in 2009 through a combined license and acquisition arrangement with Nestlé Australia. Under the deal, Simplot licensed the frozen meals brand Lean Cuisine and Maggi frozen brand, and acquired the PapaGiuseppifrozenpizza
brand and the Pakenham facility near Melbourne. Products currently
manufactured at the Pakenham site include chilled pasta and sauce, potato pommes and frozen meals. A final decision about the plant closure is due by the end of September.
Simplot said it would be undertaking widespread consultation with its employees and key stakeholders about the proposed closure.
“To ensure customers and consumersasmoothtransition,
we are developing plans to consolidate other Simplot products currently produced at Pakenham into the wider Simplot network,” Simplot Australia managing director Graham Dugdale said.
The decision to exit the market follows an extensive review,
and enables concentration
on core capabilities in vegetables, seafood, pasta and sauces. Simplot’s other brands include John West, Birds Eye, Edgell, Leggo’s, Chiko, I&J and TopCut. ✷
Heinz cops toddler snack fine
HEINZ has been fined $2.25 million in penalties for claiming a range of toddler snacks was healthy when they actually contained more than 60 per cent sugar.
Earlier this year the Federal Court found Heinz had deliberately misled the public about the nutritional content of its Little Kids Shredz range through claims on the packaging.
Legalactionwaslaunchedby
the Australian Competition and Consumer Commission (ACCC) following a complaint by the Obesity Policy Coalition (OPC) about products that are made from mostly fruit juice concentrates and pastes.
A Heinz spokesperson said the Shredz products were a dehydrated snack made from 99 per cent fruit, vegetable and chia seed ingredients and did not contain any preservatives, artificialcoloursorflavours.
The products have not been sold in Australia since May 2016. Heinz said it was committed
to providing high-quality food products to consumers.
"The Heinz Group is one of the largest food companies in the world," ACCC chairman Rod Sims said.
"We will continue to advocate for stronger penalties to deter large companies from engaging in serious contraventions of Australia’sconsumerlaws.” ✷
6 | Food&Drink business | September 2018 | www.foodanddrinkbusiness.com.au