A joint venture between SPC and ingredients specialist Döhler will form the core of the its global expansion, SPC chair Hussein Rifai says. Gourmet Ingredients will see new products developed in Australia and then sold through Döhler’s sales and distribution channels.
Rifai told Food & Drink Business that to build SPC into what the global agribusiness the company wants to be – “the Nestlé of Australia” – it must have a strong growth strategy.
“There is no silver bullet to achieve that. Our growth strategy is to acquire or enter new categories and develop international markets. Our partnership with Döhler is a natural fit and will form the core of our global ingredients business. It means we’re entering with strength into the ingredients category. Once we are operational then we will be expanding into that ingredients space internationally.
“We’re not just talking baked beans or retail products, the ingredients market is massive, so to develop our business in that area is very exciting.”
SPC CEO Robert Giles echoed Rifai’s comments, telling Food & Drink Business that it was an important next step for the business, after reseting its strategy folllowing its takeover from Coca-Cola Amatil.
“One of our important growth leads focused on how we can take our product to a global market. Our ingredients part of the business, it represents about 10 per cent of our current turnover, and so we wanted to see how we could take that to a more global scale,” said Giles.
“Döhler gives us a great platform that we were looking for and access to their global channel, but it also gives us access to their R&D and flavour house capabilities. It’s important in the ingredients space to innovate and meet the specifications that particular food manufacturers need, so working to Döhler and their technology, we can now do this on a wider scale and meet new customers.”
Director for Döhler Australia, Peter Gates, said: “With SPC’s expertise in supply processing and manufacturing and Döhler’s experience in creating innovative ingredients systems, the joint venture is the perfect marriage to promote and create Australian grown agriculture raw materials intellectual property that can be sold to the world.”
“We have seen the innovation and change that the new leadership has brought to SPC. This partnership will provide us with the opportunity to work together to develop some very unique integrated solutions for the global market.”
It is almost a year since the Shepparton Partners Collective – a JV between Perma Funds Management and The Eights – bought SPC from Coca-Cola Amatil for $40 million (Food & Drink Business 05/06/2019).
Rifai said the company has made a lot of progress but it has not been without its challenges. “The top two streams of management and leadership are completely new, building a team and takes time, but we are getting there. When your company does not have a good reputation in its sector, it is hard to attract the best people, but we are getting there.
“We are in the final stages of rolling out an ERP system after inheriting one from the early nineties. We sold the Kyabram site, bought POM and our next acquisition is in the final stages.”
SPC sold its Kyabram factory, IXL jam and Taylor’s marinades and sauces to the newly formed Kyabram Jam Company for an undisclosed sum in October last year (Food & Drink Business 23/10/2019).
It acquired PomLife in April, in a deal that sees Australian Pomegranate Growers retain its pomegranate orchards and harvesting, while SPC takes over the manufacturing processing plant. For SPC, it means greater plant utilisation year-round at its Shepparton site as well as expanding its fruit portfolio.
Rifai said the company has also launched a new range with Jackfruit and expanded its tomatoes offering with new packaging as well as new flavours.
“Consumer palettes have become much more sophisticated over time and they expect consistency, high quality, natural and nutritional culinary experience. For today’s consumer, food is now an adventure, and an experience.
“There is no better way to ensure food manufacturing security than to follow our business strategy to become a global player in food production. With the right support and partners like Döhler, if you think globally, we can take our Australian innovation to the world.”
Giles told Food & Drink Business that SPC has performed well and achieved a lot in the first half of 2020, with the COVID-19 pandemic shifting consumers back to both Australian manufacturers and purchasing canned goods.
“Australian consumers have come back and realised that canned goods and comfort foods in cans are valuable, so we’ve had this resurgence, which has also highlighted the importance of the Australian food manufacturers.”
SPC has its sight set on a number of acquisitions for the year ahead, said Giles, including one in the frozen meals sector, “which will be a big step up for us once it’s announced,”as well as entering the beverages category, and relaunching the SPC brand look and feel for its products as part of the new ownership.
