Ready to spill the beans

COCA-COLA Amatil managing director Alison Watkins says SPC has a clear pathway to profit and she expects strong interest from a range of buyers for the 100year-old food processor.

But the head of the Australia’s biggest beverage bottler has warned the collapse of the Federal Government’s tax cuts and energy policies leaves SPC at a competitive disadvantage as it pushes into new markets such as China.

“It’s extremely concerning and disappointing,” Ms Watkins said.

Coca-Cola yesterday announced a strategic review of the loss-making SPC business that will canvas “a change in ownership, alliances or mergers”. The update came as the drinks heavyweight posted a net profit of $158.1 million for the six months to June, up 12.8 per cent from the same period a year ago when it was hit with one-off restructuring costs.

Coca-Cola paid $500 million for Shepparton-based SPC in 2005 but the business struggled to turn a profit as consumers shifted away from its traditional tinned-fruit products.

The Victorian government gave the business $22 million in 2014 after Canberra refused to provide a bailout. As part of deal, Coca-Cola invested another $78 million.

Ms Watkins said the investment had produced new product lines and helped open up export markets that promised a strong future.