Criterion: Under revamped ownership, SPC Global cans its ‘baked beans and spaghetti’ reputation

• These days the revered Shepparton Preserving Company trades under the banner of the broader SPC Global
• The company’s products cover not just fruit, but other foods and ‘functional’ beverages
• If the turnaround is as peachy as it seems, management’s ‘can do’ attitude will reap rewards for investors.

SPC Global (ASX:SPG) CEO Robert Iervasi respects the 107-year-old heritage of the Shepparton Preserving Company –  a revered household brand and yet one with a troubled history.

“I see SPC Global as only six months young,” Iervasi says.

“While its brands are well known to Australian consumers and we are in 70% of pantries, SPC Global as a listed business is new to the market.”

Under new ownership, SPC is doing what eluded the former co-op: penetrating offshore markets which perceive its fruity produce as a premium product.

An amalgam of four companies, SPC Global has fruit and non-fruit offerings that are more impervious to crop conditions in the Goulburn Valley.

“SPC has transitioned from being a production-led business to a demand-led business,” Iervasi says.

“It used to be a case of ‘how much can you grow and produce at the factory’ and then ask sales to go and find demand.”

Often the sales folk came back empty handed: in 2012 the company offloaded $100 million fruit as swine food because of plummeting orders.

Convoluted history

SPC Global listed last December as an amalgam of SPC, the Original Juice Company (now the Original Beverage Company), Nature One Dairy and Natural Ingredients.

SPC acquired Ardmona in 2002. Two years later SPC bought IXL – John Elliott’s former plaything – but on-sold the jam maker in 2018.

The then listed Coca-Cola Amatil (CCA) in 2005 acquired SPC for $490 million. But Coke and pears didn’t mix so in 2019 CCA on-sold SPC to private equity – for $40 million.

SPC Global’s product range includes frozen meals, pasta sauces and trendy ‘functional’ beverages that claim specific health benefits.

These attract premium margins here, but the same applies to exported tinned fruit

For instance, SPC Ardmona tomatoes sell in China at roughly the equivalent of $4 a can. This compares $1.60 or less here.

The company also sells Juice Lab beverage wellness shots – heavy-duty concoctions of fruit, vegetables and roots – in New Zealand and Singapore.

“Twelve months ago, we couldn’t talk about those levers of value being part of SPC,” Iervasi says.

More volume, lower costs

The former group CEO of Asahi Beverages when the Japanese conglomerate bought Carlton and United Breweries, Iervasi knows the importance of scale in reducing unit costs.

As the old SPC’s frequent losses illustrated, the economics of the 150,000 tonnes a year Shepparton plant were thwarted by variable seasonal throughput.

The company’s other sites include a functional powdered milk plant in Melbourne’s Carrum Downs and a plant at Sydney’s Auburn which makes frozen meals (mainly for the health and aged care sector).

“Shepparton remains a significant footprint and being able to add more volume into the site means our [unit costs are cheaper],” Iervasi says.

“The more we can grow, the more we can create demand for our products overseas and the more cost effective it is to produce”.

Iervasi hopes the company’s experience will help to erode the belief the Australia is a prohibtively expensive place to make food and beverages.

Uncanning value

In the year to June 30 2025, SPC Global generated $383 million of revenue, up 40% and a $40 million loss.

Adjusted for restructuring and listing costs, underlying earnings crept up 12% to $12.3 million.

Offshore markets accounted for 13.5% of turnover, but 45% of profits.

Iervasi expects the overseas proportion of earnings to grow, even though the company also expects decent domestic growth.

The core tomato brand, Ardmona has delivered double digit growth over last six months.

Iervasi says a key part of his role is educating investors on the new SPC.

“We start with the perception of Shepparton – peaches, tomatoes and baked beans – and finish off with the future,” he says.

“We are proud of our heritage. Many [fast moving consumer goods companies] would love to say they have their product in 70% of pantry shelves.”

Sadly, SPG Global shares are well adrift of the $1.50 a share IPO price.

But there’s a price for everything and plum returns potentially await investors attuned to the early days of the revered brand’s transformation.