SPC takes pandemic in its stride as it eyes off growth in 2021

International border closures meant a shortage of harvest labour across the country and complications with exports, while state border closures played havoc for farmers trapped on the wrong side of the Murray from their stock and land.

SPC has turned crisis into opportunity.

The company’s new management — which took over when Coca-Cola Amatil sold the business in 2019 — has managed to continue to grow the business and make acquisitions despite the upheaval of the year.

And it’s not likely to slow down in 2021.

SPC chief executive officer Robert Giles said much of the back end of 2019 and the start of 2020 was “getting things up and running” after the Shepparton Partners Collective bought the company last year.

Wheels were set in motion for acquisitions and expansion just as the pandemic hit, and Mr Giles said acquisitions were being eyed-off in Europe as well as locally.

“We’ve got some targets in Australia which are on-brand, in the agricultural space, but also in aged and health care following on what we’ve done with ProVital,” he said.

“They’re all companies which are in our space.”

International travel’s shutdown made starting work on new overseas acquisitions difficult.

SPC still managed to form a partnership with German company Dohler, which provides natural flavours and colours as well as powdered ingredients, inking the deal in June, but the growing pandemic meant priorities turned from growing overseas business back to a home focus.

“The hard part (of 2020) was keeping the factory safe and keeping it operating during COVID,” Mr Giles said.

COVID-19 protocols meant changes for factories like SPC’s, especially as an outbreak hit Shepparton in October.

Lockdowns — nationwide in March and Victoria in the latter half of the year — also resulted in a huge increase in consumer demand, which nearly left some SPC brands short on lines like apricots.

Mr Giles doesn't expect that will be a one-off. He said the pandemic had increased people’s interest in where their food is grown and how it’s made, which was an opportunity for Australian producers.

“People are looking for Australian food, there’s been good support from the government, we’ve got plenty to do right now,” he said.

Pomlife was acquired in May, with the $3 million, 80,000-tree Ardmona orchard bringing pomegranates into the SPC family, with a focus on international markets such as the Middle East, India, and the United States. The Dohler deal came soon after.

Buying the NSW-based The Kuisine Company in October gave the company a $30 million boost — tipping it over the $300 million mark for the first time by adding the frozen prepared meals and finger food producer to its portfolio.

A month later SPC restructured its branding and corporate vision — reaching across the Goulburn Valley, Ardmona, Kuisine, ProVital and Pomlife brands — and setting the stage for more planned expansion in 2021.

That expansion, Mr Giles said, would be crucial.

“We firmly believe that it will be manufacturers and innovators like SPC who will help drive Australia’s post-COVID economic recovery,” he said.

“(COVID) did curb our expansion plans after the three recent acquisitions, and we’re moving bits into Shepparton where appropriate.

“We have placed greater value on collaboration and entrepreneurship both from within SPC and outside — it’s why we have partnered with Dohler, CSIRO and invested in Pomlife and Kuisine and we look forward to building on these.

“We must all take the opportunity to support those businesses so they can become leading brands that service not only the Australian population but the world.”

At this stage, no further jobs have been added by SPC.

In October after acquiring Kuisine, Mr Giles said there weren’t any plans to increase staff, but the company brought back all seasonal workers in the Shepparton factory for the summer fruit peak.

Heading into 2021 — if things go to plan more than they did in 2020 — there may well be room for more growth.