Del Monte Foods is closing four facilities in the United States. Production at these locations will transition to other facilities throughout the country.
Production will cease at its Sleepy Eye, Minnesota and Mendota, Illinois facilities at the end of the current packing season, Food Business News reports. The company will also sell its Cambria, Wisconsin location as well as its manufacturing assets in Crystal City, Texas.
Food Business News reports that 31 salaried and 106 hourly workers are employed at the Mendota facility, with peak season reaching 550 employees. The Sleepy facility has 22 salaried and 50 hourly employees, and as many as 400 employees during the processing season. In addition, the Crystal City facility has 90 full-time hourly, 19 salaried and 300 seasonal employees.
“This decision has been difficult and has come after careful consideration,” says Joselito D. Campos, Jr., managing director and chief executive officer at parent company Del Monte Pacific Ltd. “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.”
Del Monte has been suffering from declining sales in packaged fruit and vegetables for a number of years. The new closures now join a list of facilities that stretch back the last several years, including those in North Carolina, Indiana and California.