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Del Monte Foods, a 139-year-old American brand famous for canned fruits and vegetables, has filed for bankruptcy protection as shifting consumer preferences and economic pressures batter its core business. Owned by Singapore-based Del Monte Pacific, the company has lined up $912.5 million in debtor-in-possession financing to keep operations running while it seeks a buyer. “After thoroughly evaluating all available options, we believe a court-supervised sale process offers the best path to speed up our turnaround and build a stronger, lasting Del Monte Foods,” CEO Greg Longstreet said.

Broths and Bubble Tea Grow, But Canned Sales Decline

Headquartered in Walnut Creek, California, Del Monte Foods owns other well-known brands such as Contadina tomato products, College Inn and Kitchen Basics broths, and Joyba bubble tea. Although Joyba and its broth lines grew in fiscal 2024, those gains could not offset falling sales of its flagship canned goods. “Consumers have moved away from preservative-heavy canned foods toward healthier alternatives,” explained Sarah Foss, global head of legal and restructuring at Debtwire. Rising grocery inflation also pushed shoppers to choose cheaper store-brand options.

Steel Tariffs and Debt Disputes Compound Financial Strain

At the same time, Del Monte faced higher costs after President Donald Trump’s administration imposed a 50% tariff on imported steel, driving up the price of cans. The company also struggled with a legal dispute over debt restructuring with a group of lenders, which it settled in May. That settlement added another $4 million in annual interest expenses.  By filing for bankruptcy, Del Monte aims to streamline its business and sell assets to secure its future.

Source: News18