Century Pacific Food, a prominent meat and seafood group based in the Philippines, has emerged as the stalking-horse bidder in the auction for the assets of Atlantic Natural Foods, a notable plant-based business located in the US.
Recently, Atlantic Natural Foods, known for producing Loma Linda ready meals and Tuno tuna alternatives, filed for Chapter 11 bankruptcy in the United States on April 7.
In a significant development last week, a bankruptcy court in Louisiana approved a comprehensive bidding process for Atlantic Natural Foods, designating Century Pacific as the stalking-horse bidder. This decision sets the stage for potential changes within the company.
Atlantic Natural Foods has officially entered an asset-purchase agreement with Century Pacific, which encompasses all brands associated with the business. This acquisition is a strategic move aimed at maintaining brand integrity during a tumultuous period.
Douglas Hines, the chairman and general partner of Atlantic Natural Foods, stated, “It is an open process and we are proceeding with a bid process, and there are other interested parties.” This acknowledgment indicates a competitive landscape and further underscores the potential for partnerships in the plant-based sector.
In December, Atlantic Natural Foods revealed it had concluded its relationship with Canada-based Above Food. Subsequently, the company announced plans to transition back to private ownership, accelerating efforts to restructure its supply chain, an initiative that began in January of the previous year.
Amidst uncertainties regarding tariffs and escalating input and labor costs, Atlantic Natural Foods initiated the relocation of its production operations to Century Pacific. Notably, Atlantic Natural Foods ceased its North Carolina production in March this year, marking a pivotal shift for the company.
Currently, the company distributes products such as Big Frank vegan hot dogs and Loma Linda vegan scallops to 15 different countries. Their primary market consists of Seventh-day Adventist consumers in North America, highlighting the niche yet growing market for plant-based alternatives.
Hines remarked, “Century had infrastructure, great internal capabilities and the desire to build a generational business model which ensures the supply of food to the key community which the business is built upon.” This statement reflects the shared values and objectives between the two entities, indicating a focus on long-term sustainability.
In a statement issued on June 26, Hines elaborated on the challenges faced during this period: “During this period, Atlantic Natural Foods experienced rapid cost escalation with material impact directly related to tariffs on steel, grains, spices, along with egg whites and more.” These economic pressures have forced the company to adapt quickly in a rapidly changing market.
Hines further explained, “The restructuring of government tariffs, inflation, price pressures from government and others, labor, insurance, coupled with cybersecurity attacks which have created IT costs to increase three times which showed no relief on the near horizon.” This insight provides a glimpse into the compounded challenges faced by businesses in today’s environment.
Ultimately, Atlantic Natural Foods stated that “challenges in the supply chain and a critical business environment proved too great,” necessitating drastic operational changes and a rapid restructuring initiative. As Hines noted, “There is simply too much uncertainty right now.”
According to the bankruptcy filing, Atlantic Natural Foods disclosed assets valued between $10 million to $50 million, with liabilities estimated between $1 million to $10 million. This financial snapshot underscores the significant challenges ahead for the company.
