Food and beverage company Del Monte Pacific has announced plans to restructure the supply chain of its US subsidiary Del Monte Foods.
As part of this initiative, the company intends to move to an asset-light strategy and divest production facilities of Del Monte Foods.
Del Monte Pacific managing director and CEO Joselito Campos said: “This decision has been difficult and has come after careful consideration.
“This restructuring is a necessary step for us to remain competitive in a rapidly changing marketplace. Our asset-light strategy will lead to more efficient and lower-cost operations.
“We are committed to doing all we can to provide the affected employees with resources and support.”
As part of the restructuring, Del Monte Pacific will close two facilities located at Sleepy Eye, Minnesota, and Mendota, Illinois.
The company will cease production activities at the two facilities at the end of the current pack season.
Additionally, Del Monte is planning to divest its facility in Cambria, Wisconsin, after completion of the pack.
It is also planning to sell the manufacturing assets at its Crystal City, Texas, facility and intends to move production from this site to other locations later this year.
Del Monte noted that the move will help the company to fully utilise the capacity of its production facilities and further improve its focus on branded growth and innovation.
The company added that production activities will be moved to other Del Monte production facilities in the US.
In June 2017, Del Monte Pacific and Fresh Del Monte Produce planned to enter a series of new retail and product joint ventures (JVs), in order to provide more premium-quality, healthy products to consumers.
