SPC and Original Juice Company to Merge, Creating a Powerhouse in Australian Food Manufacturing
In a move that promises to solidify Australian manufacturing, iconic fruit and vegetable producer SPC has agreed to merge with the Original Juice Company (OJC). This strategic partnership will create a powerhouse in the Australian food industry, with a combined revenue exceeding $400 million in the next financial year.
The merger comes at a crucial time for SPC, which has faced challenges due to declining demand for Australian-grown produce and competition from cheaper imports. This partnership offers a lifeline, providing much-needed support for local growers and ensuring the continued production of iconic Australian products.
The combined entity will benefit from the strengths of both companies. SPC brings its established brand recognition, extensive production facilities in the Goulburn Valley, and a strong distribution network. OJC, on the other hand, contributes its expertise in juice production and a network of fruit growers in New South Wales.
This merger is expected to yield significant benefits for all stakeholders. SPC will gain access to OJC's production facilities, increasing its output and competitiveness. OJC will benefit from SPC's distribution network, reducing its production and distribution costs. Importantly, the merger will provide much-needed stability and growth opportunities for Australian growers.
The combined entity will be led by Hussein Rifai as chairman and Robert Lervasi as global managing director. This experienced leadership team will ensure a smooth transition and continued success for the merged company.
The merger has been met with positive reactions from industry experts and local communities. Fruit Growers Victoria sees this as a positive step for the struggling industry, while the local community in Shepparton welcomes the potential for new income streams and continued support for local growers.
The vote by shareholders to approve the merger will be held in November. If approved, this merger will mark a significant milestone in Australian food manufacturing, creating a powerhouse that will continue to produce iconic and healthy products for consumers both in Australia and abroad.