San
Francisco, California
November 13, 2000
Del Monte Foods Company (NYSE: DLM - news) announced today that the company plans to close its Woodland, California
tomato processing facility in January 2001. The closing of the Woodland facility is being done
pursuant to Del Monte's strategy to improve operating efficiencies through the consolidation of its
California manufacturing operations and to reduce the production of lower margin, commodity
products such as bulk tomato paste.
Production of Woodland's 28-ounce Del Monte brand diced tomato products will be moved to Del
Monte's state-of-the-art tomato facility in Hanford, California. Hanford will also be Del Monte's sole
internal source of bulk tomato paste, a key component for many of the Company's Del Monte and
Contadina brands of tomato products.
"We are working with our employees to make this transition as easy as possible for them and the
community,'' said Richard G. Wolford, Chairman and Chief Executive Officer of Del Monte.
"After
careful review of our operations and industry conditions and trends, we determined that this move
was necessary to ensure that our overall tomato business remains efficient, robust and competitive.''
The Woodland facility employs 46 full time employees for whom the Company will arrange either
employment opportunities in another California Del Monte plant or severance benefits. The
Woodland facility was one of two California plants that Del Monte acquired in December 1997,
when the Company purchased the Contadina tomato business from Nestle USA, Inc. Tomato paste
had been the primary product produced at the Woodland plant, which was built in 1942. After
completing this closure at the end of the calendar year, Del Monte will own three processing plants
and one distribution center in California.
Del Monte Foods Company, with net sales of $1.5 billion in fiscal 2000, is the largest producer and
distributor of premium quality, branded processed fruit, vegetable and tomato products in the United
States. The Del Monte brand was introduced in 1892 and is one of the best known brands in the
United States. Del Monte products are sold through national grocery chains, independent grocery
stores, warehouse club stores, mass merchandisers, drug stores and convenience stores. The
Company also sells its products to the U.S. military, certain export markets, the foodservice industry
and food processors. The Company operates fourteen production facilities in California, the Midwest,
Washington and Texas and seven distribution centers.
Company news release
P2009
|