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September 13, 2017

Del Monte Foods to close Indiana plant and move production to California

US canned fruit specialist Del Monte Foods is to close a northern Indiana tomato processing plant and shift its production to a central California facility.

By Andy Coyne

US canned fruit specialist Del Monte Foods is to close a northern Indiana tomato processing plant and shift its production to a central California facility.

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What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
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The company announced Tuesday (12 September) that it would start lay offs in November at the plant in Plymouth, Indiana. The facility, which employs around 100 workers, makes ketchup, tomato-based sauces, and juice from concentrate. 

Warehouse and distribution work is expected to end by February, when the facility will close.

Del Monte says in a state filing it expects the closing will be permanent.

The company says the closing will align its production capacity with current consumer demand. Production will be shifted to a plant in Hanford, California.

Del Monte Foods is the US subsidiary of Asia-based Del Monte Pacific.

Earlier this month, Del Monte Pacific said its first-quarter sales edged up 1% due to a “strong” performance of its S&W branded business in Asia and the Middle East, which offset lower sales in the US

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Free Report
img

What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.

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