Iconic retail food supplier closes two more manufacturing plants

Manufacturer of canned fruit and vegetable products is closing plants in a downsizing of its operations.

Mar 6, 2024 - 10:30

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Iconic retail food supplier closes two more manufacturing plants

National food processors have been busy closing manufacturing plants to restructure their businesses, reduce expenses and avoid filing bankruptcy.

Tyson Foods (TSN) in 2023 closed eight poultry plants located in Arkansas, Florida, Indiana, Missouri, South Carolina and Virginia. In a statement, the company it said it was "reallocating resources to operate as efficiently as possible, while maintaining ample capacity to serve our customers."

Also in 2023, Krispy Kreme (DNUT) closed a manufacturing facility in North Carolina and laid off 102 workers, and Hershey (HSY) closed its Dot's Pretzels factory in North Dakota to cut costs and laid off 27 workers, Manufacturing Dive reported. Snack maker Utz (UTZ) closed a manufacturing plant in Pennsylvania and put other plants in Indiana, Louisiana and Alabama up for sale as part of a network downsizing.

Breakfast product maker Kellanova (K) said in February that it planned to close its Eggo frozen food facility in Tennessee by the end of the year. The company said it would move the operations to other facilities.

Canned fruit products made by Del Monte Foods sit on a shelf inside a Super Target store in Thornton, Colo. Photographer: Matthew Staver/Bloomberg via Getty Images
Bloomberg/Getty Images

Del Monte closes fruit and vegetable canning plants

Del Monte Foods will close its Toppenish, Wash., and Markesan, Wis., fruit and vegetable canning plants to align and streamline operational capacity with consumer demand, the company said in a statement to TheStreet.

The two plants will close at the end of Del Monte's fiscal year, April 26, 2024, when the first employee separations will occur as production comes to a close.

Del Monte's Worker Adjustment and Retraining Notification (WARN) notice filed on Feb. 26 with the Wisconsin Department of Workforce Development listed 90 employees whose jobs might be affected. Its WARN notice filed on Feb. 27 with the Washington State Employment Security Department lists 127 workers at its Toppenish plant.

"This was an extremely difficult decision, but one that Del Monte Foods needed to make to align and streamline operational capacity with consumer demand," Del Monte Foods spokesman Drew McGowan said. "There has been a general reset in consumer behavior, realigning with buying habits at pre-Covid levels and has required the company to assess its manufacturing network and reduce the number of facilities."

Del Monte said that labelling and distribution activities will continue at the plants until fall 2024. The company is bargaining with the Toppenish employees' union over the effects of the closure. The company said it is committed to doing all it can to provide the affected team members with resources and support.

Walnut Creek, Calif.-based fruit and vegetable processor and producer has been addressing shrinking consumer demand for several years. In 2018, the company closed its tomato processing plant in Plymouth, Ind., as well as other plants in North Carolina and California. In 2019, it closed plants in Illinois, Minnesota, Texas and Wisconsin.

The 135-year-old company is a subsidiary of Del Monte Pacific Limited and is not affiliated with other Del Monte-branded companies, including Fresh Del Monte Produce, Del Monte Canada and Del Monte Asia Pte. Ltd. Del Monte Foods' brands include Contadina, S&W, College Inn, Kitchen Basics, Joyba and Take Root Organics.

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