CCA will move its juicing bottling operations to Adelaide
Food and beverage manufacturer Coca-Cola Amatil (CCA) has announced plans to invest $2.9 million to expand its beverage facility in Adelaide to accommodate juice production.
CCA said that as part of its “national focus to improve supply chain cost efficiency”, the Company will shift part of its juice production from Waikerie in South Australia to its major beverage facility in Thebarton, Adelaide, and will upgrade the facility.
The change will mean that juice extraction and blending for CCA’s Crusta and Goulburn Valley juice products will continue to be undertaken at CCA’s Ramco facility near Waikerie, South Australia, and all bottling and packaging operations will move to Adelaide by the end of the first half of 2014. As a result of this plan, 28 employees in the Ramco facility will be made redundant.
CCA said it will offer all affected employees the opportunity to work at other CCA facilities across Australia, including the Thebarton facility, as and when positions become available. The Company said it would also assist with outplacement.
“We are working with employees and union officials to ensure a smooth transition is achieved over the coming months,” said Martin Cowley, CCA’s South Australian State General Manager.
CCA said it will continue to source fruit from local Riverland growers, who would not be affected by these changes.
“Ensuring cost effective operations are crucial to CCA’s future ability to continue to sustain its juice business,” said Bruce Herbert, CCA’s Supply Chain Director. “Without these changes, juice production for CCA would be uncompetitive,” he said.
“We are not closing down or moving our juice operations offshore, nor are we turning to overseas fruit or juice for our brands,” Mr Herbert said. “We are instead maintaining our entire fruit juice production within South Australia,” he said.
CCA said that in the last five years it has invested more than $54 million into its production facilities in Adelaide, including $10 million for alcoholic beverages production and $34 million in ‘blow-fill’ technology to make lightweight PET bottles.