SPC Ardmona has signed an agreement with parent company Coca-Cola Amatil (CCA) to supply it with apple juice. SPC, which was bought by CCA in February, said the 12-month deal will enable it to up apple juice production to 23,000 tonnes from 3,500 tonnes last year.

The new agreement replaces one CCA had with China, SPC said. "Chinese imported juice has been the scourge of the industry for some time from a price point of view," SPC managing director Nigel Garrard said. "To be able to come up with this agreement is really very positive."

CCA recently announced plans to invest A$15m (US$11.4m) in a new warehouse facility at SPC's Shepparton base in central Victoria, as well as launching a capital expenditure programme of A$100m over the next three years.

From next month, SPC will see its products being distributed through CCA's distribution operations in Australia, Garrard said. Looking forward, Garrard said SPC will utilise CCA's distribution in New Guinea, New Zealand and the Pacific Islands.

"We expect that to generate significant improvements in our sales as we go forward," he said.