The Australian federal cabinet has rejected Coca-Cola Amatil's (CCA) request for A$25m funding for its fruit and vegetable processing unit SPC Ardmona (SPCA).
The decision also means that a potential A$25m grant from the Victorian Government will no longer be forthcoming.
Federal Industry Minister Ian Macfarlane said, "I think it is a clear delineation of where this government believes we need to go with industry policy."
SPC Ardmona managing director Peter Kelly said, "This is an unexpected and extremely disappointing decision by the Coalition, particularly after the enormous support we have received for our business plans from the local community and beyond.
"To build a sustainable and profitable business in Australia you need to innovate; to innovate you need to invest."
CCA stated that it had outlined substantial investment plans for SPCA, dependent on the federal and Victorian government grants, and had committed to invest over A$90m.
CCA Group managing director Terry Davis said, "This was to be invested in best-in-class technology for both new product development and for efficiency gains to enable the transformation of the production facility in the Goulburn Valley into a modern, high- tech food company, utilising clean, green Australian-grown fruit and vegetables."
