Coca-Cola Amatil’s Australian fruit and vegetable cannery SPC has sold its IXL Jam and Taylor’s Marinade and Sauces brands to Kyabram Conserves company.
It was announced in January that SPC was seeking a divestiture of its sauces unit and IXL Jam, which is Australia’s second-biggest jam brand.
The Kyabram Conserves company is backed by Millinium Capital Managers Limited, a Sydney-based fund and asset manager.
It is expected the new owners will continue to process IXL and Taylor’s from the existing site in Kyabram, in the state of Victoria, with the existing workforce.
SPC managing director Reg Weine said: “This is a good outcome for IXL and Taylor’s and good news for the Goulburn Valley. IXL and Taylor’s are great brands, but the spreads and sauces/marinades categories were a small part of the SPC portfolio and it was better we focused on areas where we have a more distinct competitive advantage.
“However, we had a great sense of responsibility in ensuring these heritage brands found a good home and that’s been achieved in this sale.”
The deal comes just a month after Coca-Cola Amatil revealed it has started a strategic review of SPC, including options to sell the business.
Group managing director of Coca-Cola Amatil, Alison Watkins, said the review coincides with the completion of a four-year, AUD 100 million ($73.6 million) co-investment in SPC in conjunction with the Victorian government in Australia.
Investment under this agreement was completed in June 2018 and included AUD 22 million ($16.2 million) by the Victorian government and AUD 78 million ($57.4 million) by Coca-Cola Amatil.
Watkins said: “We believe there are many opportunities for growth in SPC, including new products and markets, further efficiency improvements, and technology and intellectual property. The review will look at how this growth could be unlocked, potentially through a change in ownership, alliances or mergers.
“Importantly, there are no plans to close SPC. We see a positive future for SPC as it continues to transform its operations.”
© FoodBev Media Ltd 2020
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