SPC Ardmona says it is extremely disappointed with the federal government's refusal to provide a $25 million lifeline for its fruit processing operations.
Managing director Peter Kelly said the decision came as a surprise, and would be a shock to food manufacturers in Australia.
"This is an unexpected and extremely disappointing decision by the coalition, particularly after the enormous support we have received for our business plans from the local community and beyond."
SPC Ardmona's parent company, Coca-Cola Amatil (CCA), said the federal government's refusal also meant that a potential $25 million grant from the Victorian government would no longer be forthcoming.
"CCA had strong investment plans for SPCA which were dependent on the receipt of both federal and Victorian government grants, and had committed a further investment of more than $90 million to support the government contribution," the company said in a statement.
CCA managing director Terry Davis said the federal funding refusal was disappointing in light of the fact that SPC Ardmona had presented to both the federal and Victorian governments a solid business case, and CCA had committed to a much greater investment of more than $90 million.
"This was to be invested in best-in-class technology for both new product development and for efficiency gains to enable the transformation of the production facility in the Goulburn Valley into a modern, high-tech food company, utilising clean, green Australian-grown fruit and vegetables," Mr Davis said.
The company will now review SPC Ardmona's value, with a writedown of its assets, including brands and goodwill, set to be announced when CCA presents its full year financial results on February 18.
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