Sale of Del Monte products in Singapore not affected by US unit’s bankruptcy filing

SINGAPORE - Singapore-listed Del Monte Pacific said the sale of Del Monte-branded products here will not be affected by the bankruptcy filing of its US subsidiary, Del Monte Foods.

Saddled with US$1.2 billion (S$1.5 billion) in secured debt, Del Monte Foods filed for Chapter 11 bankruptcy protection on July 1 to support a planned sale of the business and restructuring of its finances.

The company has secured US$912.5 million in emergency funding to maintain operations during the process.

Certain companies of the Del Monte Pacific group have the exclusive rights to use the Del Monte trademark in the United States, South America, the Philippines, the Indian subcontinent and Myanmar. Subsidiary Del Monte Foods sells processed food products such as canned fruits, vegetables and juices, mainly in the US.

But Del Monte also licenses its Del Monte trademarks to unaffiliated companies, as is the case with Singapore.

Del Monte Asia, wholly owned by Japan’s Kikkoman Corporation, distributes processed food products under the Del Monte brand in the Asia-Pacific region – including Singapore but excluding the Philippines.

Del Monte Asia distributes a wide range of Del Monte-branded products in Singapore, from canned foods such as sardines, sweet corn, tomatoes and pineapple, to dried fruits, juices and ketchups. It also runs its own factories in Asia.

As a result, disruptions to sales here are unlikely.

Singapore shareholders of Del Monte Pacific, though, will be affected by Del Monte Food’s bankruptcy filing as its restructuring will result in a deconsolidation of the subsidiary from its parent.

Del Monte Pacific also disclosed in an exchange filing on July 7 that it expects to book a capital deficit on its balance sheet from write-offs in relation to Del Monte Foods.

Its equity investment in Del Monte Foods and certain receivables due from the US subsidiary are also expected to be subject to impairment. As at Jan 31, Del Monte Pacific’s net investment value in Del Monte Foods was US$579 million. It also has US$169 million in net receivables from Del Monte Foods and its subsidiaries.

In 2024, the US company accounted for 70 per cent of Del Monte Pacific’s 2024 sales. Del Monte Foods’ net loss position also caused the group to slip into the red.

On July 7, Del Monte Philippines, another subsidiary of Del Monte Pacific, said operating profit for the year ended May 31 surged 40 per cent year on year to 8.6 billion pesos (S$195 million). Total sales grew 14 per cent to 44.2 billion pesos.

Del Monte Pacific will issue its year-end results by July 31, and address how Del Monte Foods’ Chapter 11 filing in the US will impact the group’s financials, the company said. Any impact will be reflected in Del Monte Pacific’s first-quarter results for the 2026 financial year. 

Shares of Del Monte Pacific, which had fallen by 11 per cent to 5.6 cents at the close of last week, have since rebounded. On July 10, they closed up 4.3 per cent at 7.3 cents.