Del Monte Foods, an iconic American produce brand, files for bankruptcy

[Hol]

Del Monte Foods, known for its canned vegetables and fruit cups, has filed for Chapter 11 bankruptcy protection and is now seeking a buyer, according to multiple reports.

The California-based company, which has been in business for 138 years, cited changing consumer spending habits and an increasing shift toward private label products as key factors behind its financial troubles.

Del Monte Foods, an iconic American produce brand, files for bankruptcy

Del Monte Foods, known for its canned vegetables and fruit cups, has filed for Chapter 11 bankruptcy protection and is now seeking a buyer, according to multiple reports.

www.scrippsnews.com

 

[Tall Timbers]

If they're losing money on their food products, they may have to offer themselves up at a bargain price in order to draw interest.

 

[Margery]

That stinks!

In an odd way.

Because most food processing plants run 2 production lines in the same factory- 1 for their brand, and another for store brands and other off label stuff. In short they usually offer up 2 lines, they aren't competing with the noname stuff (we call it no name here in Canada) or the store label- they are selling to both markets.

from the article:
"Del Monte Foods, known for its canned vegetables and fruit cups, has filed for Chapter 11 bankruptcy protection and is now seeking a buyer, according to multiple reports.

The California-based company, which has been in business for 138 years, cited changing consumer spending habits and an increasing shift toward private label products as key factors behind its financial troubles."

Things which make me go HMMMMMMMM

A couple of things stand out:
California- never known as a business friendly state- known instead for exorbitant eye watering taxes
Private label- shouldn't be a problem there. So the problem is else where, that is just what they are blaming it on.

My guesses: I think maybe the corporation hasn't streamlined it's factories or done much to keep up with the times (like providing another line for those dreaded private labels).

Makes me wonder if the unions were too demanding - that happens a lot in Canada.

But taken in context with all those American farms being bought up by China and Bill Gates, the slaughter of chickens en masse with bird flu, the way over the past few years starting just before Covid how meat packing plants, food processors and food industries have had all kinds of mysterious troubles- over the past 5-6 years or so--

I'd say it's time to look further than "changing consumer habits".

 

[Tall Timbers]

Don't think I've ever bought a Del Monte can of corn... Maybe some cans of fruit, peaches for instance.

 

[mattfivefour]

That stinks!

In an odd way.

Because most food processing plants run 2 production lines in the same factory- 1 for their brand, and another for store brands and other off label stuff. In short they usually offer up 2 lines, they aren't competing with the noname stuff (we call it no name here in Canada) or the store label- they are selling to both markets.

from the article:
"Del Monte Foods, known for its canned vegetables and fruit cups, has filed for Chapter 11 bankruptcy protection and is now seeking a buyer, according to multiple reports.

The California-based company, which has been in business for 138 years, cited changing consumer spending habits and an increasing shift toward private label products as key factors behind its financial troubles."

Things which make me go HMMMMMMMM

A couple of things stand out:
California- never known as a business friendly state- known instead for exorbitant eye watering taxes
Private label- shouldn't be a problem there. So the problem is else where, that is just what they are blaming it on.

My guesses: I think maybe the corporation hasn't streamlined it's factories or done much to keep up with the times (like providing another line for those dreaded private labels).

Makes me wonder if the unions were too demanding - that happens a lot in Canada.

But taken in context with all those American farms being bought up by China and Bill Gates, the slaughter of chickens en masse with bird flu, the way over the past few years starting just before Covid how meat packing plants, food processors and food industries have had all kinds of mysterious troubles- over the past 5-6 years or so--

I'd say it's time to look further than "changing consumer habits".

That's what came to me when I read the OP-- bad management. A lack of strong vision resulting in lacklustre direction from the top and a skewed vision that is more interested in promoting innovative flavors to try to appeal to new GenZ consumers plus an anemic advertising budget all could have impacted the corporation's bottom line.

 

[Margery]

That's what came to me when I read the OP-- bad management. A lack of strong vision resulting in lacklustre direction from the top and a skewed vision that is more interested in promoting innovative flavors to try to appeal to new GenZ consumers plus an anemic advertising budget all could have impacted the corporation's bottom line.

YES because when I compare it to say General Mill's Cheerios, or Kelloggs Corn Flakes, Green Giant frozen veggies or Tropicana Orange Juice - those brands are flourishing, even against knock off brands (that they probably make on their second tier factory lines). They aren't throwing in the towel and moaning sadly about lost consumer confidence. Ditto Betty Crocker lines or Bob's Red Mill or Nature's Path all of which command a respectable share of the market.

Considering the possibility that if California labour laws are like Canadian labour laws, they are so in the side of the unions, so maybe the companies suffer.

But IF that were so it should affect Blue Diamond almonds for example or Sun Maid Raisins BOTH of which are food brands based out of Cali

So that leaves the main probability that the management of Del Monte couldn't be bothered to try to run a second tier, couldn't be bothered to maintain their factories or their farms, couldn't be bothered to keep up with modern marketing.