Walnut Creek, California-based Del Monte Foods, Inc,, a division of Singapore-based Del Monte Pacific Limited, has announced a major restructuring that will result in the closure of three canned vegetable production plants resulting in a layoff of an estimated 844 employees, 188 permanent workers and 656 seasonal workers. The facilities are located in Sleepy Eye, Minnesota and Mendota, Illinois will be shuttered after the packing season sometime June 2020. The Crystal City facility is now closed. In addition the company has announced its intention to sell its facility in Cambria, Wisconsin.
A company spokesperson noted, “"This decision is difficult and has come after careful consideration. This restructuring is a necessary step for us to remain competitive in a rapidly changing marketplace. Our asset-light strategy will lead to more efficient and lower cost operations." According to the company’s financial filings, “Del Monte continues to diversify beyond the canned goods aisle, a declining category, and introduced four new innovative products in the growing categories of refrigerated produce and frozen to cater to demand for health and wellness, snacking and convenience.”
Del Monte Pacific Limited CEO Joselito Campos, Jr. observed, “We are encouraged by the accelerated pace of innovation and new product launches especially in the United States, taking us into new categories and formats outside the can which is not growing.” He added, “At the same time, we have proactively reduced costs within our control amidst headwinds of rising tin prices. We are pleased to deliver a full year net income for DMPL, driven by our results in Asia, while we invest in transforming our US business.”
This company should not be confused with their 1989 spin-off, Coral Gables, Florida-based Fresh Del Monte Produce, a producer and distributor of fresh and fresh-cut fruit and vegetables, which has a similar name and licenses the Del Monte brand logo.
Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life, or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?