A few things concerning me about this SPC deal. As commented in the press today, it is a win for the local area and will take advantage of the factory upgrades that CCA put in place regarding manufacturing and distribution of the SPCs product suite. A deal like tis is not worked out overnight, nor does it take a few weeks. It takes months, is a considerable investment from Woolworths and would be determined on a number of issues including a). SPCs ability to maintain its SLA with Woolworths, and b). have a customer base willing to purchase the product on a national scale. Now with this in mind, ponder this for a moment - In the initial negotiations with Woolies last year, SPC would have been able to moderately service its agreement to Woolies due to the upgrades that CCA had paid/ committed to the factory. As SPC stated today, however, it can not service the full product range but with the leeway Woolies gave them in this agreement, they will be able to grow the full product range over the next five years. Also, SPCs product range was not generating enough interest - people had moved away from canned fruit to fresh fruit. If you where in negotiations of this nature - how could you generate public interest in your product and buy enough public support and leeway to enable you to grow the products over a period of time rather than have them in the stable house? If I was SPC, I would approach a federal government and ask for financial assistance - contend in the knowledge that they would say no and that I had an ace in an Opposition leader that has positioned himself as the leader of the battler - an opposition leader that would know doubt remind the Australian public constantly of the governments inability to help a regional legend.....thereby turning a regional concern into a national interest piece. I would hope that the opposition leader would constantly draw the publics attention to the problem - generate enough interest so that 20 Million hits nationwide would register on our website with messages of support and ill buy your product.... As the company I would keep saying we are working on numerous solutions to keep our workers and our relationship with local farmers going so as not to detract from the perception of the aussie battler supporting the locals at all cost......I would keep reminding the Australian people that our house is in order, particularly with the modifications to our plants and operating models and that we can service any deal........$25 million dollars wasnt sustainable to keep SPC going and SPC knew this - their figure had a 7 infront and a lot of zeros.....
Posted on: Tue, 11 Mar 2014 03:04:22 +0000
Trending Topics
Recently Viewed Topics
© 2015