News Default Del Monte Foods Is Closing Two U.S. Plants

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Del Monte Foods Is Closing Two U.S. Plants

Del Monte Foods, a major player in the canned fruit and vegetable industry, is making significant changes to its operations. The company has decided to close two of its tinned vegetable plants in the United States, impacting hundreds of jobs.

Plant Closures

The affected facilities are located in Toppenish, Washington, and Markesan, Wisconsin. These factories, operated by Del Monte Foods' U.S. subsidiary, will cease operations by the end of April.

  • The Markesan plant, which produces green beans, will be shuttered.
  • The Toppenish facility processes tinned corn and peas.

Reasons Behind the Decision

Del Monte Foods attributes this difficult decision to the need for operational alignment with consumer demand. The company has faced challenges due to shifting consumer behavior, realigning with pre-Covid buying habits, and the necessity to evaluate its manufacturing network.

While production will stop in a couple of months, labeling and distribution will continue until the latter half of the year.

Support for Affected Employees

Del Monte Foods is committed to supporting the affected team members during this transition. Bargaining with the union in Toppenish is underway to address the effects of the closure.

Previous Closures

This isn't the first time Del Monte Foods has made such decisions. In 2019, the company closed two other U.S. facilities in Sleepy Eye, Minnesota, and Mendota, Illinois, affecting over 360 roles.

Financial Snapshot

In its latest financial results, Del Monte Foods reported a 5% increase in annual net sales compared to the previous year, reaching $808.7 million. However, gross profits declined by 27.7% year-on-year to $159.1 million.

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