Del Monte files for bankruptcy: 139-year-old canned food giant struggles amid changing consumer trends
Del Monte
, a 139-year- old company once a towering player in the market, has filed for bankruptcy protection. The company said it's doing this because more Americans are choosing healthier or cheaper food options and ignoring canned products, as per the company's statement.
Del Monte has secured $912.5 million in financing, called "debtor-in-possession", so that it can keep running while trying to sell its assets. CEO Greg Longstreet said a court-supervised sale is the best way to save and rebuild the company, according to the report by The Hill.
Other brands are doing okay, but not enough
Del Monte is based in Walnut Creek, California, and it also owns Contadina (tomato products), College Inn and Kitchen Basics (broth), and Joyba (bubble tea). While products like Joyba bubble tea and broth saw some sales growth in 2024, it was not enough to make up for the fall in sales of canned items, as per reports.
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Why Del Monte's sales went down
Consumer demand is shifting away from preservative-filled canned food toward fresh, healthier choices, according to Sarah Foss of Debtwire. Grocery inflation has also made people turn to cheaper store brands, hurting Del Monte even more, according to The Hill report.
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In addition, Trump's 50% tariff on imported steel, since June, increased the cost of making cans, adding pressure on Del Monte. In 2023, Del Monte was sued by a group of lenders who didn't agree with how the company wanted to restructure its debt, as mentioned in the reports.
As stated in the report by The Hill, that case was settled in May 2024, but it caused Del Monte to take a loan that raised their yearly interest by $4 million. Del Monte said the bankruptcy is part of a planned sale of the company's assets.
FAQs
Q1. Why did Del Monte file for bankruptcy?
Del Monte filed for bankruptcy because of falling sales in canned foods, rising costs, and changing consumer preferences toward healthier and cheaper options.
Q2. Who owns
Del Monte Foods
?
Del Monte Foods is owned by
Del Monte Pacific
, a company based in Singapore.
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