California-based Del Monte Foods, known for its canned fruits and vegetables, has filed for bankruptcy.
The company also owns the brands Contadina, College Inn, Kitchen Basics, and Joyba, the Associated Press (AP) reported on Wednesday.
CEO Greg Longstreet said, “After a thorough evaluation of all available options, we determined a court-supervised sale process is the most effective way to accelerate our turnaround and create a stronger and enduring Del Monte Foods.”
Consumers are more and more looking elsewhere for healthier options that are lower in price, per the AP article, and the news comes amid the Trump administration’s effort called Make America Healthy Again (MAHA).
According to Sarah Foss who is global head of legal and restructuring at Debtwire, “Consumer preferences have shifted away from preservative-laden canned food in favor of healthier alternatives.”
The food company has reportedly secured over $900 million in financing from lenders as the proceedings move forward, per Fox Business.
The AP article noted, “Del Monte said late Tuesday that the bankruptcy filing is part of a planned sale of company’s assets.”
Del Monte calls itself the “original plant-based food company” adding “Since 1886, we have been cultivators and innovators of nutritious produce for families across America.”
As part of the MAHA effort, Health and Human Services (HHS) Secretary Robert F. Kennedy Jr. and Food and Drug Administration (FDA) Commissioner Marty Makary said in April that “petroleum-based food dyes” would be removed from Americans’ food supply, per Breitbart News:
During a press conference on Tuesday, Makary spoke about how the scientific community had “conducted a number of studies raising concerns about the correlation between petroleum-based synthetic dyes” and health conditions like Attention Deficit Hyperactivity Disorder (ADHD) and cancer. Kennedy Jr. also vowed to “get rid of” artificial food dyes.
Following the announcement, the candy company known as Mars Inc. said it stopped making Skittles with titanium dioxide, and Kraft Heinz announced it will no longer launch new products with artificial dyes, as Breitbart News reported.
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