Latest news with #cannedgoods
Washington Post
03-07-2025
- Business
- Washington Post
Del Monte Foods, maker of popular canned goods, files for bankruptcy
Del Monte Foods, the nearly 140-year-old company whose canned fruits and vegetables have long been grocery store staples, has filed for bankruptcy as it grapples with mounting debt, post-pandemic headwinds and shifts in consumer spending. The company announced Tuesday that it had voluntarily initiated Chapter 11 proceedings and reached an agreement with its lenders to sell most or all of its assets.
Yahoo
03-07-2025
- Business
- Yahoo
Del Monte Foods Files Bankruptcy After 140 Years
After more than a century of gracing American pantries with its iconic canned fruits and vegetables, Del Monte Foods is turning the page on a storied legacy. The 140-year-old food giant has filed for Chapter 11 bankruptcy protection, signaling a dramatic shift for the brand long synonymous with shelf-stable staples. Facing mounting debt, evolving consumer preferences, and industry headwinds, the company announced it will pursue a court-supervised sale in a bid to maximize value and secure its future. While operations are expected to continue throughout the restructuring, the fate of one of America's most recognizable food brands now hangs in the balance. Del Monte Foods, a long-standing leader in the canned goods industry, announced Tuesday that it has filed for Chapter 11 bankruptcy protection. The company has initiated voluntary Chapter 11 proceedings and entered into a restructuring support agreement with a group of its lenders. The move, Del Monte said, is part of a broader plan to facilitate a court-supervised sale and strengthen its financial foundation. 'This is a strategic step forward for Del Monte Foods. After a thorough evaluation of all available options, we determined a court-supervised sale process is the most effective way to accelerate our turnaround and create a stronger and enduring Del Monte Foods. With an improved capital structure, enhanced financial position, and new ownership, we will be better positioned for long-term success,' said Greg Longstreet, President and CEO of Del Monte Foods. To support the restructuring and maintain regular operations, the company has secured a commitment of $912.5 million in debtor-in-possession financing from some of its current lenders. This total includes $165 million in new funding and remains subject to court approval. Combined with cash generated from ongoing operations, the financing is expected to provide ample liquidity throughout the sale process and allow Del Monte to continue business as usual, including the pack season currently in progress. Del Monte Foods' decision to file for Chapter 11 bankruptcy stems largely from its mounting debt, which became increasingly unsustainable in recent years. Following its 2014 acquisition by Del Monte Pacific, the company was saddled with a significant debt load. As interest rates surged, so did its financial burden. According to the Los Angeles Times, interest payments climbed from $66 million in 2020 to a staggering $125 million in fiscal 2025, outpacing earnings and straining liquidity. The situation worsened after a controversial debt restructuring in 2024, involving a Liability Management Exercise, which sparked legal disputes with creditors and further destabilized the company's financial standing. Compounding these financial pressures was a steady decline in core product sales. Demand for Del Monte's traditional canned goods began to erode as consumers increasingly turned to fresher, healthier options. The rise of private-label brands during a period of high inflation only accelerated this shift. In response, Del Monte ramped up production based on overly optimistic forecasts. However, slumping demand led to costly surplus inventory and forced the company into deeper promotional spending to move products off shelves. At the same time, Del Monte was hit hard by broader macroeconomic challenges. Inflation drove up the cost of ingredients and materials, while new U.S. tariffs—particularly a 50% duty on imported steel and aluminum—significantly increased packaging expenses. These external pressures, combined with continued supply chain disruptions and a price-sensitive consumer base, made it even harder for the company to stay competitive. According to a filing with the New Jersey bankruptcy court, obtained by Reuters, Del Monte Foods estimates its assets and liabilities to be between $1 billion and $10 billion, with the number of creditors ranging from 10,000 to 25,000. In the short term, business will largely continue as usual. Del Monte Foods has filed customary 'first day' motions that, upon court approval, will enable it to continue operating in the ordinary course and without interruption. Looking ahead, Del Monte's future depends on attracting the right buyer—one willing to modernize the brand, adapt to shifting consumer preferences, and navigate an increasingly competitive grocery market. While legacy alone won't guarantee survival, a fresh strategy under new ownership could allow this 140-year-old staple to evolve and remain relevant for decades to come. Whether Del Monte becomes a revitalized force in the food industry or a cautionary tale will ultimately hinge on how effectively it leverages this moment of crisis into an opportunity for reinvention. Source: Fox Business, Reuters, Los Angeles Times Read the original article on GEEKSPIN. Affiliate links on GEEKSPIN may earn us and our partners a commission. Sign in to access your portfolio
CBS News
02-07-2025
- Business
- CBS News
Del Monte Foods files for bankruptcy and will search for buyer
Del Monte Foods, whose canned vegetables and fruit have long been a staple on grocery store shelves, announced Monday that it has filed for bankruptcy and will seek a buyer. The nearly 140-year-old company is entering Chapter 11 proceedings as part of a restructuring support agreement (RSA) with its lenders. "After a thorough evaluation of all available options, we determined a court-supervised sale process is the most effective way to accelerate our turnaround and create a stronger and enduring Del Monte Foods," Greg Longstreet, president and CEO of Del Monte Foods, said in a statement. Del Monte did not immediately respond to CBS MoneyWatch's request for comment. The canned-goods producer, based in Walnut Creek, California, said it has secured a commitment for $912.5 billion from its lenders that will help fund the company throughout the going-concern sale process and allow it to continue operating. Del Monte has between $1 billion to $10 billion in both estimated liabilities, according to its court filing with the U.S. Bankruptcy Court for the District of New Jersey. The sale, the California-based company said in its statement, will involve "all or substantially all of the Company's assets." In its search for a new buyer, Del Monte said it would prioritize the highest or best offer. Changing consumer preferences Del Monte is the fourth company in the food & beverage sector to file for Chapter 11 according to data from Debtwire, a data analytics firm. "Generally, Del Monte says that consumer demand has declined, causing it to incur increased costs related to surplus inventory that it has had to warehouse and attempt to move off shelves with increased promotional spending," said Sarah Foss, global head of legal and restructuring at Debtwire, in an email to CBS MoneyWatch. "Consumer preferences have shifted away from preservative-laden canned food in favor of healthier alternatives," she added. The move follows a challenging few years for the company, which has issued layoffs and made efforts to downsize to cut costs. Del Monte last year started a debt overhaul, according to Bloomberg.
Yahoo
25-06-2025
- Business
- Yahoo
Trump's metal tariffs drive up packaging costs
The doubling of US steel and aluminium import duties to 50% under President Trump is significantly increasing costs for metal packaging across food and beverage industries. Reuters reports that cans are now more expensive, prompting companies to consider switching materials amid uncertainty over tariffs. US firm Pacific Coast Producers, which supplies canned fruit and tomatoes, says the cost of specialty steel has risen by about 6%, leading to an estimated $40 million extra expense next year. With tariffs rising from 25% to 50% on 4 June 2025, can prices may increase by as much as 24% by next spring. Retailers and consumers could face food price increases in the range of 9–15% on canned goods, according to industry estimates. Faced with higher can costs, some producers are reviewing options like aseptic cartons (such as Tetra Pak), foil pouches, glass bottles or plastic. However, alternatives bring challenges: glass is heavier to ship, pouches require new production lines and materials like plastic carry different logistical limitations. Major brands—such as Coca‑Cola and PepsiCo—are able to shift more easily thanks to diverse packaging strategies. Aluminium-heavy segments, especially beer producers, may struggle more. Around 64% of US beer sales in 2023 were in cans and many breweries have already invested heavily in canning lines. However, recycled aluminium (about 71% of content) is not subject to tariffs, which somewhat buffers the impact for large brewers like AB InBev. Packaging firms remain cautious. The cost of switching materials and revising supply chains is significant, and changes in tariff policy could occur rapidly. European metal and packaging groups are also considering counter‑measures, such as restricting scrap exports, in response to the US policy. With tariffs now subject to legal review and potentially staying in place during appeals, companies face more uncertainty. For now, the packaging industry is bracing for higher metal costs and weighing long-term shifts in material use—though most remain wary of making irreversible investments amid policy volatility. Navigate the shifting tariff landscape with real-time data and market-leading analysis. Request a free demo for GlobalData's Strategic Intelligence . "Trump's metal tariffs drive up packaging costs" was originally created and published by Packaging Gateway, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
