Del Monte files for bankruptcy as its canned fruit and vegetable sales slide
Summary
Del Monte Foods, known for canned fruits and vegetables, has filed for bankruptcy protection to manage its business during a sale process. The company has secured financing to continue operations, and while some of its brands are growing, its core canned products face declining sales as consumers choose healthier or cheaper alternatives.Key Facts
- Del Monte Foods is 139 years old and famous for canned fruits and vegetables.
- The company is seeking bankruptcy protection to facilitate a sale of its assets.
- Del Monte secured $912.5 million in financing to keep operating during this process.
- The company owns other brands, including Contadina, College Inn, Kitchen Basics, and Joyba bubble tea.
- Sales of Joyba bubble tea and broths have grown, but canned goods sales have decreased.
- Consumers prefer healthier foods and cheaper store brands over canned products.
- U.S. tariffs on imported steel have increased can prices, affecting costs.
- Del Monte is owned by Del Monte Pacific, which is based in Singapore.
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