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Del Monte Foods, a 138-year-old grocery staple that bills itself as “the original plant-based food company,” has filed for Chapter 11 bankruptcy protection as Trump’s aluminum tariffs and shifting consumer preferences threaten its long-established market position.
Key Takeaways
- Del Monte Foods initiated Chapter 11 bankruptcy proceedings on July 1 with between $1-10 billion in estimated assets and liabilities.
- The company has secured $912.5 million in financing to continue operations while seeking a new owner.
- Economic pressures including Trump’s increased steel and aluminum tariffs (doubled from 25% to 50% on June 4) have significantly impacted the canned foods industry.
- Consumer preferences shifting toward healthier alternatives and private label products have eroded Del Monte’s market share.
- Del Monte is the fourth major food and beverage company to file for bankruptcy this year, highlighting broader industry challenges.
American Food Icon Faces Financial Restructuring
Del Monte Foods, established in 1886 and operating for 138 years as a cornerstone of American pantries, filed for bankruptcy protection in the U.S. Bankruptcy Court for the District of New Jersey on July 1. The company owns several well-known brands including Del Monte, Contadina, College Inn, Kitchen Basics, JOYBA, Take Root Organics, and S&W. As a major producer, distributor, and marketer of food products across the United States, Del Monte has built a significant presence in grocery stores nationwide, once describing itself as “the largest fruit and vegetable cannery in the world,” according to Del Monte’s company materials.
CEO Greg Longstreet characterized the bankruptcy filing as a “strategic step forward” rather than a complete business failure. “After a thorough evaluation of all available options, we determined a court-supervised sale process is the most effective way to accelerate our turnaround and create a stronger and enduring Del Monte Foods,” said Greg Longstreet, President and CEO of Del Monte Foods. The company’s approach suggests a calculated decision to restructure rather than a desperate last resort, with operations continuing largely uninterrupted for consumers.
Trump’s Tariffs and Market Challenges
The bankruptcy filing comes amid significant economic headwinds facing the canned food industry. Most notably, the Trump administration’s decision to double tariffs on steel and aluminum from 25% to 50% on June 4 has created substantial cost pressures for companies like Del Monte that rely heavily on these materials for packaging. These increased production costs, combined with changing consumer preferences, have created a perfect storm of financial challenges for the iconic food producer.
“Del Monte says that consumer demand has declined causing it to incur increased costs related to surplus inventory,” said Sarah Foss, senior legal analyst at Debtwire.
The shift in consumer tastes toward healthier, fresher alternatives has been gradual but profound, eroding demand for traditional canned goods despite their affordability and convenience. Many shoppers are also increasingly choosing private label products over national brands like Del Monte, further squeezing the company’s market share. These market dynamics have forced Del Monte to maintain excess inventory, creating additional financial strain that ultimately contributed to the bankruptcy filing.
Continuing Operations During Restructuring
Despite the bankruptcy filing, Del Monte has taken significant steps to ensure its business continues operating normally. The company has secured a substantial $912.5 million commitment from lenders to maintain operations through the restructuring process. This financing will allow Del Monte to continue paying employees, fulfilling customer orders, and meeting obligations to vendors while it seeks a buyer. Additionally, the company’s non-U.S. subsidiaries are not included in the Chapter 11 proceedings and will continue normal operations.
Del Monte is not alone in its struggles. It joins three other major food and beverage companies that have filed for Chapter 11 protection this year, including Hearthside Foods and Harvest Sherwood Food Distributors. This trend reflects broader challenges in the food industry as companies navigate inflation, changing consumer preferences, and supply chain disruptions. Interestingly, while premium brands struggle, some value-oriented food companies are seeing growth. Campbell’s, for instance, reported a profit of $66 billion with increased sales in low-cost soups, even as snack spending declined.
“Consumers are cooking at home at the highest levels since early 2020,” said Mick Beekhuizen, Campbell’s chief financial officer.
The Road Ahead for an American Icon
Del Monte’s bankruptcy filing represents a pivotal moment for the 138-year-old company. While the immediate future involves court-supervised proceedings and a search for new ownership, the company’s substantial financing arrangement and continued operations suggest confidence in the long-term viability of the brand. The restructuring process is designed to strengthen Del Monte’s position in the marketplace and ensure its iconic products remain available to American consumers for years to come.
Del Monte Foods is entering Chapter 11. The 138-year-old canned vegetable and fruit maker will stay operational during the sale. Thoughts? https://t.co/Mu13WM2Y5s
— Entrepreneur (@Entrepreneur) July 2, 2025
For consumers, the bankruptcy filing is unlikely to result in immediate changes at the grocery store. Del Monte products will continue to be produced and distributed while the company works through its financial challenges. However, the company’s struggles highlight the impact of both government policies like increased tariffs and broader economic trends on American businesses, even those with deep historical roots and established market positions. As Del Monte navigates this challenging period, its ability to adapt to changing consumer preferences will likely determine its ultimate success.