Introduction
The Victorian State Government has announced a $100 million co-investment with Coca-Cola Amatil to rescue SPC Ardmona, including $22 million rescue package in February. This announcement came after the refusal of $25 million grant from the federal government. However, there is also doubt why the taxpayers have to pay for the company’s mistake, and whether it is an effective use of tax money to save this company. This report provides a brief overview of SPC Ardmona’s problems, and based on triple bottom line analysis and PESTLE analysis, shows why it is necessary to secure SPC Ardmona’s fruit business.
Background: Overview of SPC Ardmona’s problems
Main manufacture sites located in the Goulburn Valley region in Victoria, SPC Ardmona is an Australian-based company which focuses on premium canned fruits and vegetables business (SPC Ardmona 2014). Having experienced large growth during the last century, their two predecessors, SPC and Ardmona, merged in 2002 and SPC Ardmona soon became the largest fruit producer in this country. In 2005, Coca-Cola Amatil finalized the acquisition of SPC Ardmona (SPC Ardmona 2014). They have always been the identity and glory of Victoria. More than 760 employees are currently working in it (Robin 2014). Their close connection with associated industries companies and citizens, makes it important for the local economy and society (Feldtmann 2014).
However, SPC Ardmona has been suffered unparalleled challenges from 2009. Their sales, revenue and profits have impacted by lower demand of processed fruits and oversea competitors. Supermarkets were regarded as the main retailers, while Woolworth and Coles, which were the two supermarket giants in Australia, preferred to choose cheaper importe...
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SPC Ardmona – Our Rich History, SPC Ardmona, Melbourne, viewed 4 June 2014,
SPC Ardmona - Who We Are, SPC Ardmona, Melbourne, viewed 4 June 2014,
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Taylor, L. 2014, ‘Chinese tinned peaches high in lead, says MP battling for SPC Ardmona’, Guardian, 24 January, viewed 4 June 2014,
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RNRA Team, “Supermarkets, Fresh Produce and New Commodity Chains: What Future for the Small Producer?” Hot Topics: February, 2004.
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