Coca-Cola Amatil has announced that it will sell SPC following a review of the Victorian food unit.
The company aimed to offload IXL jam and Taylor’s marinades as part of the SPC business but halted their planned sale to Kyabram Conserves last month.
CCA Managing director Alison Watkins said there were growth opportunities open to SPC, such as entering new markets and creating products.
“The review has concluded that the best way to unlock these opportunities is through divestment, enabling SPC to maximise its potential with the benefit of the recent $100 million co-investment while Amatil sharpens its focus as a beverages powerhouse,” Watkins said on Friday.
“There are no plans to close SPC: we see a positive future for the company as it continues to transform its operations.”
Coca-Cola Amatil, which has owned SPC since 2005, said it expects the business to record a full-year loss in 2018 of approximately $10 million, resulting in an overall loss for its corporate, food and services segment.
CCA shares slumped by as much as 12 per cent in early trade, falling to a six-month low.
SPC employs about 220 full-time workers at a plant in Shepparton and another 1,100 people during the picking season.
It had been under review since August following a four-year investment program, with the Victorian government pumping in $22 million of a total $100 million.
At 1028 AEDT, Coca-Cola Amatil shares were $1.20, or 11.9 per cent, lower at $8.90.