Del Monte Foods, a 138-year-old company based in Walnut Creek, has filed for Chapter 11 bankruptcy, facing challenges due to rising costs and changing market dynamics. It experienced significant growth during the pandemic, increasing production, but later struggled with excess inventory as demand fell. Cheaper discount brands have also undermined Del Monte's market position. The company, which owns various well-known brands, continues to grapple with debt from its acquisition in 2014, alongside the recently doubled tariffs on steel, which significantly impacted production costs.
While we have faced challenges intensified by a dynamic macroeconomic environment, Del Monte Foods has nourished families for nearly 140 years, and we remain committed to our mission of expanding access to nutritious, great-tasting food for all.
Del Monte did very well during the pandemic and bolstered production, only to find itself with too much stock once demand dwindled.
Del Monte is also now largely undercut by cheaper discount brands, and the company that acquired it in 2014, Del Monte Pacific Limited, never got out from the debt it took on to finance the original purchase.
Donald Trump's steel tariffs may have been the nail in the coffin. Del Monte cans are made from steel, and last month steel tariffs doubled from 25% to 50%.
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