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Del Monte Entering Bankruptcy

1.9K views 44 replies 32 participants last post by  Adventure Wolf  
#1 ·
Del Monte, the 139-year-old canned fruits and vegetables company, seeks bankruptcy protection


Del Monte Foods, the 139-year-old company best known for its canned fruits and vegetables, is filing for bankruptcy protection as U.S. consumers increasingly bypass its products for healthier or cheaper options.
Del Monte has secured $912.5 million in debtor-in-possession financing that will allow it to operate normally as the sale progresses.

“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.



not sure what to think about this.
I've heard nutritionist types for years say that canned veggies are bad for you.
maybe its cuz younger generation doesn't cook at home.





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#2 · (Edited)
I don't buy many canned veggies and no canned fruits. Home canned, home frozen or at least organic and bph free. My food snobbery shows 😸.

My first thought is there is more to this than cheaper generic brands, they probably make some of those generics. Maybe follow who the owners are. I find the corp. graft is deep on many issues. My tin foil is showing now.
 
#15 ·
My first thought is there is more to this than cheaper generic brands, they probably make some of those generics. Maybe follow who the owners are. I find the corp. graft is deep on many issues. My tin foil is showing now.
Read up on Conagra.

A somewhat detailed look:
  • Core Business: Conagra Brands is a leading North American "branded food" company (see below).

    • Global Presence: While primarily focused on the US market, Conagra also has an international presence.
Conagra doesn't produce Del Monte products, but they do produce products such as:

Conagra is a major player in the private label food manufacturing industry, supplying products for brands like Walmart's Great Value. Conagra also produces many in store brands.

My thoughts:
Conagra is trying to push Del Monte into insolvency so they can buy them up.
 
#11 ·
I know my Walmart got flogged.

My guess Mondelez buys them
 
#6 ·
The majority of our canned goods are generic. Usually from Aldis. That's primarily because they have the stock on hand for our "pro-cery" shopping. Why buy 1 or 2 cans when I can pick up cases and stock the pantry?

We have a system with the employees there. Grab a case or two, pull one can, write the quantity on the top, and put it in the child seat. When we get to the register we don't have to mess around trying to dig the heavy/bulky stuff out.
 
#34 ·
The majority of our canned goods are generic. Usually from Aldis. That's primarily because they have the stock on hand for our "pro-cery" shopping. Why buy 1 or 2 cans when I can pick up cases and stock the pantry?
I would suspect that this probably has a good deal to do with their bankruptcy. I would guess that for most people, for canned goods, especially "plain" things like vegetables or fruit (not soup) there's probably rarely any preference, especially when you consider that the name brand are sometimes 2x the price of store brand?

For canned soup, I prefer Campbell's Tomato over any store brand. But for peas or potatoes or anything else - I'll get whatever's cheapest, and that's usually ALDI.
 
#14 · (Edited)
Mine in bold

“Consumer preferences have shifted away from preservative-laden canned food in favor of healthier alternatives,”
I'm looking at a can of green beans right now. The ingredients: Green beans and water (I prefer no salt which is an option.)

P.S. The can I'm looking at now was produced by Conagra (see below)


said Sarah Foss, global head of legal and restructuring at Debtwire, a financial consultancy.
When does a legal consultant in financial restructuring become qualified to comment on nutrition?


I've heard nutritionist types for years say that canned veggies are bad for you.
maybe its cuz younger generation doesn't cook at home.
Some truth. When green beans are cooked in the can, a lot of the product nutrients are found in the green water that people pour out. If you cook fresh beans at home and pour out the green water, it's all the same.
 
#18 · (Edited)
Del Monte is not the only player in that game. They get lots of competition from the smaller canneries producing the "store brand" generics. Foreign competition too. We keep a variety of canned veggies in our preps. Store well, easy prep. Mostly generic low-salt store brands. Read and Goya are especially good.
 
#22 ·
In rural West Virginia where it is a 30-mile drive to the Food Lion or Wal-Mart we buy lots of Clover Valley brand generics from the Dollar General Market which is nearby.

When you consider the cost of gas driving into a larger town, the pricing is OK. National brands do cost much more at DG, but we seldom buy them because the quality of the generics is adequate. Savings and convenience are more important.

We make a monthly excursion into Martinsburg or Winchester, but between times happily exploit the DG and local farmers markets.
 
#28 ·
I use canned goods frequently. I also like that I can stock pile them for emergencies. We had a snow storm ( 14 feet in 4 days) that hit a couple years ago and we couldn`t get off our street for over two weeks. That could have been bad if we weren`t well stocked. After that storm we stock even more just to be safe :)
 
#32 ·
I soured on Del Monte brand canned goods when I bought some canned pineapple on sale because it was somewhat less expensive than my usual Dole brand. The Del Monte pineapple was picked before it was fully ripe---not sweet---and very hard texture compared to the Dole brand which was everything it was supposed to be... I know that's only one food item, but it told me that Del Monte QC was poor and they just didn't care... Just my personal opinion...
 
#33 ·
One local truck company hauled DM's products to warehouses and the truck outfit is out over 1/2 million dollars, tough on the small truck companies, sad part is the CEO was/is making 8 million a year (if he's terminated he gets $16 million) the other corporate officers make in the millions of dollars a year also, DM can't pay their bills but the top gets paid and has a golden parachute.

It's getting close to harvest peaches for DM in our area and now the farmers are on the losing end, the guy that works our orchard has a contract with DM for his peaches and now he needs to find another buyer.
 
#36 ·
How many peaches are we talking?! The wife and I are planning a canning bonanza soon! I will order more lids just in case...

ETA: Tell them to check their farmers insurance to see if a breach of contract is covered. Even if it covers the difference between the contract and sale price. I've seen farmers able to collect on the darndest things...
 
#38 ·
I've heard stories of assembly lines that put three different labels on the same product run.
but I've opened store cans of veggies that were half water and had stalks, and name brand stuff much better.

buying canned stuff would be so much easier with x-ray vision

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#40 ·
One of my first tax paying jobs was detassling corn for DelMonte. I worked night shift in their factory throughout my whole college career. It's where I learned that the people who process your food do not give a rat's butt about you, and if people knew the half of what goes on in food processing EVERYONE would be growing their own. We blindly shovel food into our face and pretend it magically appears on the shelves and think we are safe. We survive our food system despite how it is run, not because of it.
 
#42 ·
Such BS about the preservatives in canned veg as being a reason for the bankrupcty. Canned veg rarely has anything but salt and water. Canned soups and chilis can have some interesting stuff. Salt is GOOD for you, essential even and your doctor is wrong if he tells you to limit it.

No, it was price. Name brand cans are having a hard time competing with the lower priced store brands.