Del Monte Foods Plans Sale of Hanford Plant

Del Monte Foods has announced plans to sell its Hanford tomato processing plant, which employs 400 to 500 workers, due to high inventory levels and low demand for its products. The company acknowledges that this difficult decision aligns with shifting consumer preferences but emphasizes that it will not impact its branded tomato product lines, which include Del Monte and S&W. Communication with the union representing the employees and local government officials is underway, though details about layoffs and the sale timeline remain undisclosed. Analysts highlight that the tomato processing market is contracting, contributing to the closure of multiple facilities in California. The Hanford plant, one of Del Monte's 10 U.S. facilities, is a significant asset for local tomato growers and the community. This divestment follows a broader trend of shrinking operations in the canned vegetable sector amid rising production costs and changing consumer behaviors.