Coca-Cola Amatil has decided to sell its struggling SPC fruit and vegetable processing business, abandoning its former plans to turn it around.

Key points: Coca-Cola Amatil says there are no plans to shut down SPC's cannery

Coca-Cola Amatil says there are no plans to shut down SPC's cannery SPC employs 220 full-time workers in Shepparton, and an additional 1,100 in picking season

SPC employs 220 full-time workers in Shepparton, and an additional 1,100 in picking season Amatil is not expecting to meet its growth target for the current financial year

The beverage company is expecting a $10 million loss for SPC in the 2017/18 financial year.

The news of the sale comes four years after Amatil and the Victorian government invested large sums of money — $78 million and $22 million respectively — into SPC to keep it afloat to prevent job losses.

Amatil's chief executive Alison Watkins said there were still "many opportunities for growth in SPC", following a strategic review of the business, which began in August.

She said these included "new products and markets, further efficiency improvements, and leveraging technology and intellectual property".

Furthermore, she said IXL and Taylor's would still be part of SPC, after Amatil's plans to sell those brands fell through.

Amatil has not commented on any potential buyers, but said there were "no plans" to shut down SPC's operations.

Minimal local impact

SPC employs about 220 full-time employees at its Shepparton plant, and a further 1,100 workers during the picking season.

Sam Birrell, who heads a local economic group, the Committee for Greater Shepparton, was not surprised about Amatil's plans.

"We knew that CCA were conducting a review, and it's not as big an employer as it was," he said.

"A lot of the orchardists are more reliant on the fresh food market than the processing fruit market.

"So whilst it's an iconic company, I think Shepparton has gone beyond the one-industry or one-factory town that perhaps it was many years ago."

Shepparton fruit grower Gary Godwill who witnessed the highs and lows of the struggling fruit processor said the company would cease to exist if it hadn't been purchased by Coca-Cola Amatil.

He said he was initially surprised CCA had bought the company.

"Possibly they regret that now, nonetheless they have pumped a lot of money into it, without a buyer like CCA I don't think the company would exist now, it would've gone broke," Mr Godwill said.

"I think it's a growing concern. Let's hope that the right hands buy it and hope that it's not an asset stripper.

"With the right political settings, it could be a very sound business and let's hope someone with courage comes in and buys it and operates it the way it's being operated currently."

'Transitional' year ahead

Ms Watkins warned Coca-Cola Amatil's 2017/18 full-year results would be weighed down by $50 million in expenses due to "cost optimisation programs".

She also flagged that her company would be unable to meet its mid-single digit earnings growth target in the 2018/19 financial year.

That was due to the impacts of "the container deposit schemes in Australia, higher PET resin costs and a weak Indonesian rupiah", she said.

Coca-Cola Amatil's share price plunged 12.5 per cent to $8.74 at 1:10pm (AEDT), wiping out its gains in the last six months.

Ms Watkins signalled there was already interest in the company being bought.

She said she did not regret the investment into SPC, and that it was in a better state than it was in 2013, when there was serious concern it could have been shut down and manufacturing taken offshore.

"The ten million dollar loss is not a big deal in the scheme of things. It's a modest loss, I would describe it as," she said.

"The challenge for the business is top-line growth, but the core structure of the business now is very good. So what will move that loss to a profit is growth, and that's what the business is poised to do.

"We really see a very bright future as a result of the investment we've made."