Del Monte Foods is poised to close a facility in Yakima, Washington this summer as part of a strategic move to align its food manufacturing operations with shifting consumer demand.
The closure will impact not only the fruit processing site but also two warehouses, as confirmed by the California-based company.
According to a Worker Adjustment and Retraining Notification (WARN) notice filed with the Washington Employment Security Department, the decision will affect 51 jobs, with layoffs expected to start on August 8.
“This was an extremely difficult decision but one the company needed to make to align the business with consumer demand,” said a Del Monte Foods spokesperson in a statement.
“This means that there will be no pack for the 2025 season at the Yakima facility.”
The spokesperson further clarified that no other facilities within the Del Monte Foods network will be affected, emphasizing that the plant closure will not impact the company’s family of brands, including Del Monte.
Del Monte Foods, owned since 2014 by Singapore and Philippines-listed Del Monte Pacific, is renowned for its canned fruit and vegetables under the Del Monte brand.
In 2022, the company expanded its portfolio by acquiring Kitchen Basics, a manufacturer of broths and stocks, from fellow US food business McCormick & Co.
Other notable brands under Del Monte Foods include Joyba teas, Contadina, Take Root Organics canned tomatoes, and College Inn broths and stocks, in addition to the S&W line of canned fruits and vegetables, dressings, and sauces.
Del Monte Foods has informed the union representing Yakima workers of its plans and is actively discussing the implications with “other manufacturing parties,” the spokesperson indicated.
Parent company Del Monte Pacific reported fiscal 2024 sales of $2.4 billion, remaining steady compared to the previous year. Notably, EBITDA dropped 60% to $133.2 million, culminating in a net loss of $127 million, contrasting with a profit of $17 million the prior year.
Furthermore, third-quarter results for fiscal year 2025, released in March, indicated a 3% sales increase to $1.9 billion. However, EBITDA declined 13% to $134.9 million, while net profits remained negative, reporting a $92.2 million loss, which is an increase from the $50.6 million loss in the same period last year.
