Three food companies will divvy up major assets of the Del Monte Foods Corp., which filed for bankruptcy in July. But the court-supervised auction process did not include the Yakima, Washington, facility that canned pears and apples.
In a news release, Del Monte Foods announced deals with Fresh Del Monte Produce Inc. (which has been a separate company for decades), B&G Foods Inc. and Pacific Coast Producers.
Specifically, Fresh Del Monte Produce bought the vegetable, tomato and refrigerated fruit brands and assets while Pacific Coast Producers bought the shelf-stable fruit brands and assets, but not the production assets.
Pacific Coast Producers, a cooperative of 160 growers in Northern California, will purchase the shelf-stable canned fruit inventory, as well as the Del Monte and S&W brands for packaged fruit, according to a news release from the company.
“This is an exciting opportunity for Pacific Coast Producers, and the result is beneficial for the peach, pear and apricot growers in California,” said Matt Strong, president and CEO, in the release. “This expansion of our business will allow us to continue to provide a secure market for our growers and provide our employees with a stable and successful operation, fully utilizing our production assets.”
Meanwhile, Del Monte’s Yakima plant and warehouses remain for sale. The company cited declining demand as the reason for the closure, which was announced prior to the bankruptcy filing in May. The decision left many Bartlett pear growers in the Northwest in the lurch as they consider the future of their orchards. •
