Coca-Cola Amatil’s (CCA) new partnership with Woolworths has been good for Australia’s fruit industry. Aussies want Aussie fruit.
When Woolworths announced that it would source its Select Canned Fruit line from CCA's SPC Ardmona last year, sales skyrocketed. From October to July 2013, average sales increased 38%, reaching as high as 124% in fruit-growing areas.
Now CCA is focusing its attention on juice. Although the company is making strategic decisions to “improve supply chain cost efficiency”, it's not at a cost to Australia.
CCA will invest $2.9 million to expand and upgrade its major beverage facility in Thebarton, Adelaide to accommodate juice production, when it moves part of its juice production from Waikerie in South Australia.
The change will mean that juice extraction and blending for CCA’s Crusta and Goulburn Valley juice products will continue to be undertaken at CCA’s Ramco facility near Waikerie, and all bottling and packaging operations will move to Adelaide by the end of the first half of 2014.
CCA’s supply chain director, Bruce Herbert, said, “Ensuring cost effective operations are crucial to CCA’s future ability to continue to sustain its juice business. Without these changes, juice production for CCA would be uncompetitive.
“We are not closing down or moving our juice operations offshore, nor are we turning to overseas fruit or juice for our brands. We are instead maintaining our entire fruit juice production within South Australia.”
CCA will continue to source fruit from local Riverland growers, who will not be affected by these changes.
The 28 employees in the Ramco facility who will be made redundant will be given the opportunity to work at other CCA facilities across Australia, including Thebarton, when positions become available. CCA will also assist with outplacement.
CCA’s SA state general manager, Martin Cowley, said, “We are working with employees and union officials to ensure a smooth transition is achieved over the coming months.
“In the last five years CCA has invested more than $54 million into its production facilities in Adelaide, including $10 million for alcoholic beverages production and $34 million in ‘blow-fill’ technology to make lightweight PET bottles.”
