After nearly 140 years on grocery shelves, Del Monte has filed for Chapter 11 bankruptcy in the United States, capping decades of slow decline for a brand once synonymous with canned vegetables and fruit cocktail. The collapse surprised many North Americans who grew up with Del Monte products as pantry staples, but analysts see it less as a sector-wide warning and more as evidence that even iconic companies can lose relevance.
In Canada, the Del Monte name has already been fragmented. French food giant Bonduelle took over its canned fruits and vegetables in 2018, blending them into its Arctic Gardens business. For most consumers, little changed outwardly, but the supply chain quietly shifted to European operations.
Despite perceptions, canned foods have been regaining popularity as persistent inflation makes shelf-stable goods attractive again. Sales in Canada’s canned “meals and soups” segment have climbed more than 40% in recent years. Yet Del Monte’s brand never fully benefited from this trend. Advances in freezing technology narrowed the quality gap with fresh produce, while frozen prices stabilized, undermining canned goods’ value advantage.
The company’s troubles also stemmed from massive debt—over a billion dollars—and a failure to refresh its image and product lines. Tariffs on steel and aluminum during the Trump administration further strained margins by driving up packaging costs.
Del Monte is expected to re-emerge under new ownership, likely with a slimmer portfolio and a broader strategy to compete against nimble private labels. For smaller Canadian producers, this restructuring could open shelf space long dominated by legacy brands.
Source: Yahoo