Coca-Cola Amatil (CCA) has decided to divest its Australian food business unit SPC following the conclusion of a strategic review.
The company started the review of SPC in August after completing a four-year A$100m ($73m) co-investment by Amatil in conjunction with the Victorian government.
The co-investment was used to install a high-speed snack lines and an aseptic fruit processing system.
CCA Group managing director Alison Watkins said: “We believe there are many opportunities for growth in SPC, including new products and markets, further efficiency improvements, and leveraging technology and intellectual property.
“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 A$100m co-investment, while Amatil sharpens its focus as a beverages powerhouse.
“There are no plans to close SPC. We see a positive future for the company as it continues to transform its operations.”
Watkins further added that the review identified significant strengths in the SPC business, and there was a strong market interest in exploring a possible sale.
The company’s IXL and Taylor’s brands will continue to be part of SPC, following the announcement on 21 November that an expected sale to Kyabram Conserves is no longer proceeding.
CCA acquired SPC in 2005. Since then, the company is said to have invested around A$250m ($184m) of capital in the business, including technology and equipment.
