139-Year-Old Canned Goods Staple Files for Bankruptcy

Del Monte Foods, the 139-year-old company best known for its canned fruits and vegetables, is filing for Chapter 11 bankruptcy and is seeking a buyer as US consumers increasingly bypass its products for healthier or cheaper options. "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 [more] enduring Del Monte Foods," CEO Greg Longstreet said in a statement. Del Monte has secured $912.5 million in debtor-in-possession financing that will allow it to operate normally as the sale progresses, reports the AP.

Del Monte Foods, based in Walnut Creek, California, also owns the Contadina tomato brand, College Inn and Kitchen Basics broth brands, and the Joyba bubble tea brand. The company has seen sales growth of Joyba and broth in fiscal 2024, but not enough to offset weaker sales of Del Monte's signature canned products. "Consumer preferences have shifted away from preservative-laden canned food in favor of healthier alternatives," said Sarah Foss, global head of legal and restructuring at Debtwire, a financial consultancy.

Grocery inflation also caused consumers to seek out cheaper store brands. And President Trump's 50% tariff on imported steel, which went into effect in June, will also push up the prices Del Monte and others must pay for cans. Del Monte Foods is owned by Singapore's Del Monte Pacific; the Wall Street Journal notes the filing doesn't impact Del Monte Pacific, Del Monte Philippines, or its Latin American units. CNN reports the company was founded in 1886 and built its famed San Francisco cannery in 1907. Within two years it claimed to run the largest fruit and vegetable cannery on the planet.