Canned food giant Del Monte goes bankrupt in the US, what will happen to it in Indonesia?

foto: delmonte.com

Del Monte Foods in the United States filed for bankruptcy due to changing consumer trends.

Brilio.net - Shocking news comes from the global culinary world. Del Monte Foods, an iconic company that is 139 years old and famous for its canned fruit and vegetable products, has officially filed for bankruptcy protection in the United States (US).

Quoted from Reuters, Friday (4/7), this step was taken as part of an agreement with its main lenders. The company also plans to sell some of its assets to cover some of the debt.

So what really happened to a company as big as Del Monte?

Del Monte goes bankrupt
illustration photo: ChatGPT AI

Del Monte CEO Greg Longstreet said this process is the best path to recovery.

"After thorough evaluation, we have decided that a court-supervised sale process is the most effective way to accelerate our recovery and create a stronger and more resilient Del Monte Foods," he said in a statement, as quoted by BrilioFood from the CBC page.

Still quoted from the same page, the main cause of this problem is a shift in consumer trends. Sarah Foss from financial consulting firm Debtwire explained, "Consumer preferences have shifted from preservative-laden canned foods to healthier alternatives."

In addition, several other factors contribute to making the situation worse:

- Inflation: Rising prices of basic necessities cause consumers to switch to store brand products which are cheaper.

- Production Costs: The 50% steel import tariff in the US has caused the cost of producing cans to skyrocket, which has hit companies like Del Monte hard.

- Debt Burden: A lawsuit last year that led to debt restructuring added $4 million to the company's annual interest expense.

While some brands under the Del Monte Foods umbrellasuch as Joyba boba tea and College Inn & Kitchen Basics brothsaw sales growth, it wasnt enough to offset the decline in sales of their mainstay, canned foods.

For 139 years, Del Monte has been known as a canned food giant with a reputation for premium quality. They were even one of the pioneers to voluntarily include nutrition labels on all their products since 1971.

"We believe that everyone deserves delicious food to make our customers happy, which is why we grow and produce sustainably and environmentally friendly for a healthier future," Del Monte wrote on its official website.

Del Monte goes bankrupt
illustration photo: Instagram/@delmonteindonesia

Now, this is the most important thing. This bankruptcy filing is under Chapter 11 in the United States. This means that subsidiaries outside the United States are not included in this process and continue to operate as usual.

Del Monte itself is no stranger in Indonesia. Since 2003, PT Lasallefood Indonesia has marketed various Del Monte products, ranging from tomato sauce, chili sauce, spaghetti sauce, fried rice seasoning, to sardines that are familiar to our tongues.

Responding to the circulating news, Del Monte Indonesia also provided an official clarification via their Instagram account to calm consumers.

"In connection with the news circulating about the bankruptcy of the company holding the Del Monte brand specifically for the USA region. The owner of Del Monte in Indonesia is Del Monte ASIA, which has no ownership relationship with Del Monte USA. So Del Monte Indonesia continues to operate as usual," wrote the Instagram account @delmonteindonesia in their story.

So, you don't need to worry. Your favorite chili sauce and Del Monte products will remain safe in the Indonesian market.

(brl/tin)