A Del Monte Foods factory in Modesto, California, is closing down. This factory has been responsible for packing canned Del Monte products. According to CBS News, the closure will impact around 600 jobs.
Recently, Fresh Del Monte, B&G Foods, and Pacific Coast Producers made moves to acquire assets from Del Monte Foods. This was part of a Chapter 11 bankruptcy process that started in July. Del Monte Foods confirmed that the Modesto plant was no longer needed. In a statement, they mentioned, “The go-forward business will not require the operational capacity provided by the Modesto plant.” This led to the hard decision to wind down its operations.
Del Monte Foods president and CEO, Greg Longstreet, previously described entering Chapter 11 as a “strategic step forward” for the company. He believed selling assets was the best way to help the company bounce back. Fresh Del Monte agreed to a deal worth $285 million for most of Del Monte Foods’ assets, pending court approval on January 28.
This deal includes various product lines. For instance, Fresh Del Monte will take over Del Monte’s vegetable and tomato businesses, as well as its refrigerated fruit items. They are also set to acquire facilities in Texas, Illinois, Wisconsin, Washington, and even a couple of plants in Mexico and Venezuela.
B&G Foods is also getting in on the action. They plan to acquire Del Monte’s broth and stock operations, which include brands like College Inn and Kitchen Basics. Meanwhile, Pacific Coast Producers will take on the shelf-stable fruit business, using the Del Monte and S&W brands in the U.S., Puerto Rico, and Mexico.
Last week, Longstreet reflected on the sales, noting that they show the lasting value of Del Monte’s brands. He stated, “These transactions will create an opportunity for our beloved brands and businesses to thrive under new ownership.”
Del Monte Foods has been under the ownership of Del Monte Pacific, a company based in Singapore and the Philippines, since 2014. However, Del Monte Pacific will remain a separate entity going forward.
This closure highlights a growing trend in the food industry. A report from the U.S. Department of Agriculture indicates that food processing jobs have shifted due to automation and changing consumer demands. The closure of the Modesto plant serves as a reminder of the ongoing adjustments in this sector. As companies like Del Monte navigate these changes, the impact on employees and communities remains a pressing concern.
For more on the food industry’s evolving landscape, check out related articles on USDA’s website.
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