The Sunset of the No-Can-Opener Era: What Del Monte's Bankruptcy Indicates About the Generational Shift in the Food Industry

1. Overview of Bankruptcy Filing: Del Monte's Choice for "Survival"

On July 1, 2025, at 9 AM, Del Monte Foods announced that it had filed for Chapter 11 in the U.S. Federal Bankruptcy Court in the New Jersey division. Since its founding in 1892, the company has built a global distribution network as a synonym for canned pineapples and corn, but in recent years, declining sales and massive inventory reduction costs have hit its management hard. According to the filing, assets and liabilities are both between $1 billion and $10 billion, with up to 25,000 creditors. CEO Greg Longstreet commented, "We prioritize business continuity and employee protection, aiming for a speedy selection of sponsors."reuters.com

2. DIP Financing Holds the Key to Cash Flow

Del Monte secured a $912.5 million DIP (Debtor-in-Possession) loan and additionally obtained a new credit line of $165 million from existing creditor groups. The court gave interim approval on the day of the filing, allowing the funds to be used for inventory repackaging costs and employee salaries. According to Bloomberg, the interest rate is SOFR plus 800 basis points, with maturity within 12 months after the completion of the process.bloomberg.com

3. Background of Declining Sales: Rise of Health Consciousness and Plant-Based Options

Sales shrank by about 34% from the peak in fiscal year 2019 ($3.5 billion) to fiscal year 2024 ($2.3 billion). PBS analysis points out a **"structural shift where younger generations choose 'frozen over canned'"**, while CBS MoneyWatch reports that "while fresh produce prices have eased under inflation, canned goods couldn't fully pass on high logistics costs."pbs.orgcbsnews.com

4. What "#RIPDelMonte" Reveals About Consumer Psychology

The news of the bankruptcy quickly spread on X (formerly Twitter) and Reddit.

• Nostalgia Group: "My childhood lunches were Del Monte peach cans. An era has ended." (User from California, USA)

• Health-Conscious Group: "Canned goods have too much sugar and sodium. It's inevitable they disappear." (r/StockMarket)

• Inflation-Weary Group: "No one buys if the price goes over $3." (r/news)

The number of posts was estimated to exceed 70,000 on the day of the filing alone, and related hashtags reached 130 million impressions within 48 hours (according to the company's monitoring tools).

5. "Sudden Rain" Strikes Farmers and Subcontractors

About 300 tomato farmers in California's Central Valley contracted with Del Monte. In addition to requests for shipment price reductions, they received notifications to reduce this season's planting area by up to 25%, lamenting that "there's no prospect for cash flow." Regarding the headquarters building in Walnut Creek (leased area of approximately 7,200 square meters), the company applied for lease termination under bankruptcy law.costar.com

6. Industry Peers' Movements: The Start of the Acquisition Race

Food industry analysts cite potential buyers, including:

1. Major retailers looking to quickly expand their private label shelves (such as Sam's Club under Walmart),

2. U.S. private equity firms strengthening fresh and frozen sectors (such as Berkshire Partners, TPG),

3. Multinational food manufacturers targeting the Southeast Asian market (such as Thailand's Charoen Pokphand, Philippines' Jollibee Foods)
   . The process is likely to be a **"stalking horse method + auction"**, with expectations that it could take until as early as December 2025 or as late as early 2027.bloomberg.com
   
   

7. Lack of Innovation in "Preserved Foods" and Damage to Brand Equity

Since 2018, Del Monte has explored new areas like "Basil-Infused Diced Tomatoes" and "Joyba Boba Tea," but market share only slightly increased, and gross profit margin fell from 30% to 18%. The package design refresh from the 1990s did not progress, leaving it "unappealing to young people" and relegated to the lower shelves.

8. Investor Perspective: Risk Premiums Emerging Even for Private Companies

Del Monte's corporate bonds (maturing in November 2024, with a coupon of 7.75%) plummeted from a face value of $100 to $28 the day before the filing. After the bankruptcy filing, trading was halted.Since DIP loans have priority repayment, there is an estimate that general claims will have a recovery rate of 10-15%.

9. Asian Operations Remain "Business as Usual," but Caution is Advised

Subsidiaries overseas, such as in the Philippines, were excluded from the filing, but the structure of exporting sugar-coated canned pineapple to the headquarters remains the same. As the outcome of the parent company's restructuring could alter trade conditions, local factories are reportedly considering a "shift to domestic sales."reuters.com

10. Future Scenarios and Timeline

11. Conclusion: Del Monte's Bankruptcy Reflects the End and Beginning of the "Century of Canned Goods"

Del Monte's collapse indicates that the value of **"room temperature storage = safety"** has reached its expiration date as it blends into diverse options like frozen, retort, and plant-based foods. However, canned goods still hold niche demand as emergency and disaster food. If the acquiring company succeeds in reinventing with sustainable packaging or reduced-sugar syrup, canned goods might return to the dining table. Will Del Monte's revival open a new chapter of "no can opener needed"?