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SPC and Woolworths sign three year contract

Australian manufacturer SPC Ardmona announced yesterday that it had concluded its annual discussions with Woolworths’ private label business positively.

The company has now signed a three-year contract to supply an increased volume of deciduous fruit to Woolworths for its private label ‘Woolworths’ brand. This equates to around nine million cans.

The vast majority of the Woolworths and SPC partnership relates to SPC’s branded products such as SPC, Ardmona, Goulburn Valley, Taylor’s and IXL.

In a Press Release, SPC Ardmona indicated the two companies would continue to work collaboratively to reduce costs and improve supply chain efficiency.

“The two companies have a good and open relationship and we appreciate senior management support from Woolworths to bring our business discussions to a positive conclusion,” the statement said.

Earlier, outspoken Australian entrepreneur Dick Smith fanned flames when commenting on speculation that SPC would lose the Woolworths private label contract, blaming the mooted loss indirectly on the performance of German supermarket chain ALDI. “Woolworths and Coles are desperately trying to get their costs down, because they are losing business to ALDI,” Mr Smith said.

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