Woolworths inks fruit deal with SPC Ardmona

Good news for Australian fruit growers

a woman

In a major win for local fruit growers and processor SPC Ardmona, Woolworths (ASX:WOW) has decided to source all its private label canned fruit domestically.

Once the supermarket retailer has sold through its current range of imported stock, Woolies will source product grown by Australian farmers and processed fruit from Coca-Cola Amatil (ASX:CCL) subsidiary SPC Ardmona.

Farmers will be cheering the decision, but for some it has come too late. There are many stories this year of farmers being forced to pull out ancient fruit trees, to make way for other agricultural products, simply because they have no-one who would buy their fruit.

In June this year, The Weekly Times reported that 750,000 fruit trees in the Goulburn Valley were expected to be burnt before spring, after SPC Ardmona advised around 170 growers that SPC would no longer accept their fruit. That would see 10% of peach and pear trees made redundant across the state of Victoria.

SPC Ardmona managing director Peter Kelly has welcomed Woolies’ decision, telling the Australian Financial Review (AFR) that the decision would save around 50,000 fruit trees from being destroyed, protect the livelihoods of 118 growers and shore up the future of the company’s operations in the Goulburn Valley.

The AFR also reports that last month Woolworths inked a deal with SPC Ardmona to supply 13 different lines of fruit for the retailer’s private label brands. Just two days ago, the federal government announced that it would invest $25 million into SPC Ardmona, to enable the company to keep its Shepparton processing plant open until at least 2020.

The move by Woolworths to source its produce domestically could also force rival Coles – owned by Wesfarmers (ASX:WES) to follow suit.

Foolish takeaway

While the deal is unlikely to cost the supermarket retailers much in the long run, it’s exceptionally good news for fruit growers in Australia as well as SPC Ardmona, and could be good news for Coca-Cola Amatil and its shareholders.

Interested in our #1 dividend-paying stock? Discover The Motley Fool’s favourite income idea for 2013-2014 in our brand-new, FREE research report, including a full investment analysis! Simply click here for your FREE copy of “The Motley Fool’s Top Dividend Stock for 2013-2014.”

More reading


Motley Fool writer/analyst Mike King owns shares in Woolworths and Coca-Cola Amatil.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of January 12th 2022

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

asx share price competitions represented by businessmen arm wrestling
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

person reading news on mobile phone
⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »