SPC Global’s Manufacturing Shake-Up: Can It Deliver on Cost and Growth Promises?
SPC Global unveils a leaner manufacturing strategy post-merger, targeting over $8 million in annual savings and accelerating international expansion.
- Exit from Mill Park site by August 2026
- Annual savings exceeding $8 million with reduced $3 million capital spend
- Juice Lab Wellness Shots production moves to Shepparton amid 61% growth
- Long-term co-manufacturing deal with Fair Dinkum Foods for Original Juice Co.
- New jobs created in Shepparton and Griffith, supporting Australian manufacturing
A Strategic Shift for Efficiency and Growth
SPC Global Holdings Ltd (ASX:SPG) has announced a significant reshaping of its manufacturing network following its recent merger, aiming to sharpen capital efficiency while backing its fastest-growing brands. The company’s revised plan notably reduces capital expenditure from a previously proposed $23.5 million to just under $3 million, while delivering more than $8 million in annualised savings starting in fiscal 2027.
This pivot reflects a broader move towards a demand-led operating model, designed to better align production with customer needs, lower fixed costs, and enhance scalability both domestically and internationally. Central to this strategy is the planned exit from the Mill Park manufacturing site by the end of August 2026, marking a clear step in streamlining operations.
Backing High-Growth Brands and Strategic Partnerships
SPC Global is doubling down on its high-growth segments by relocating production of its Juice Lab Wellness Shots; currently experiencing an impressive 61% year-on-year growth; to its Shepparton facility. This move will be supported by targeted automation investments to maintain quality and operational control while scaling efficiently.
Meanwhile, the Original Juice Co. private-label and industrial juice lines will be produced under a long-term co-manufacturing agreement with Fair Dinkum Foods, a family-owned business based in Griffith, NSW. This partnership is expected to extend juice shelf life to up to 12 months, improve supply chain efficiency, and reduce the environmental footprint by situating production closer to citrus farms.
Supporting Australian Manufacturing and Sustainability
Despite the consolidation, SPC Global emphasises its commitment to Australian manufacturing, with new roles anticipated in Shepparton and Griffith. The company plans to offer redeployment opportunities where possible, underscoring a responsible approach to workforce transition.
By shortening supply chains and lowering transport requirements through its Griffith partnership, SPC Global also aims to reduce its environmental impact, aligning operational efficiency with sustainability goals.
Looking Ahead
Managing Director Robert Iervasi highlighted that the refined manufacturing footprint is designed to deploy capital more efficiently, support the strongest growth brands, and accelerate international expansion. This strategic recalibration positions SPC Global to strengthen its competitive edge and deliver long-term shareholder value.
Bottom Line?
SPC Global’s streamlined manufacturing approach promises cost savings and growth, but execution risks and international market traction remain key to watch.
Questions in the middle?
- How smoothly will the transition from Mill Park to other sites proceed operationally?
- What impact will the co-manufacturing deal have on product quality and brand perception?
- How quickly can SPC Global capitalise on international market opportunities with this new model?
