Del Monte Foods is closing a facility in Washington state this summer as the US fruit and vegetable business tries to reshape its network in line with demand.
The permanent closure of the fruit products site in the city of Yakima also includes two warehouses, California-headquartered Del Monte Foods confirmed.
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A Worker Adjustment and Retraining Notification (WARN) notice, filed with the Employment Security Department in Washington, stated 51 jobs are affected by the decision, with staff cuts expected to begin on 8 August.
“This was an extremely difficult decision but one the company needed to make to align the business with consumer demand,” a Del Monte Foods spokesperson, said in a statement provided to Just Food.
“This means that there will be no pack for the 2025 season at the Yakima facility.”
The spokesperson added no other facility in the Del Monte Foods’ network is impacted by the decision and the plant closure has no implications for the company’s family of brands such as Del Monte.
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By GlobalDataDel Monte Foods, owned since 2014 by Singapore and Philippines-listed Del Monte Pacific, is best known for its namesake brand of canned fruit and vegetables.
Kitchen Basics, a manufacturer of broths and stocks, was acquired by Del Monte Foods in 2022 from fellow US food business McCormick & Co.
Its other stable of brands features Joyba teas, Contadina and Take Root Organics canned tomatoes, College Inn broths and stocks, and S&W, another line of canned fruits and veg, along with dressings and sauces.
Del Monte Foods has notified the union representing the workers at the Yakima factory of its plans and is also in discussions with “other manufacturing parties regarding the effects of these plans”, the spokesperson said.
Parent company Del Monte Pacific reported sales in fiscal 2024 of $2.4bn, flat with the previous 12 months. EBITDA dropped 60% to $133.2m, while the business turned to a net loss of $127m, compared to a profit of $17m a year earlier.
Third-quarter results for the 2025 financial year issued in March showed the group increased sales by 3% to $1.9bn.
EBITDA dropped 13% to $134.9m and net profits remain in the red, delivering a $92.2m loss from a $50.6m loss in the corresponding period.
