Fruit and vegetable cannery SPC has sealed a deal to sell off its spreads and sauces businesses including IXL Jam, the second-biggest jam brand in Australia.

The Coca-Cola Amatil-owned SPC on Monday revealed the sale of its IXL and Taylor's Marinade and Sauces brands to the newly formed Kyabram Conserves Company, which is backed by Sydney-based fund manager Millinium Capital Managers.

The new owners intend to continue local production of both brands from existing factories in Kyabram, with existing workforces, according to SPC.

“This is a good outcome for IXL and Taylor’s and good news for the Goulburn Valley,” SPC managing director Reg Weine said.

“IXL and Taylor’s are great brands, but the spreads and sauces/marinades categories were a small part of the SPC portfolio and it was better we focused on areas where we have a more distinct competitive advantage.”