Heritage canned‑food maker Del Monte Foods has filed for Chapter 11 protection, citing credit pressures and “stunning increases” in packaging costs, driven in large part by President Donald Trump’s decision in early June to double U.S. tariffs on imported steel and aluminium to a whopping 50 per cent.
According to court filings, Del Monte is saddled with USD 1.2 billion in secured debt and tapped nearly USD 912.5 million in debtor-in-possession financing to maintain operations mid-restructuring. The company emphasises that its “pack season” will continue uninterrupted but warns sharply increased tin‑plate and aluminium costs have slashed margins.
Industry sources highlight that aluminium foil and can suppliers already faced a roughly 6% jump in material costs following the tariff increase, with projections of a 24% hike in can pricing by spring 2026. The Can Manufacturers Institute warned these tariffs distort domestic packaging supply and could push U.S. food prices higher.
Also read: Packaging firms warn that doubling tariffs on steel and aluminium may escalate food costs
Hopes persist for a comeback
Del Monte CEO Greg Longstreet acknowledged the “dynamic macroeconomic environment”, emphasising that elevated aluminium costs, on top of steel duties, have forced the company to consider an expedited sale process. “With an improved capital structure, enhanced financial position and new ownership, we will be better positioned for long-term success,” he added. Other packaging options such as cartons or glass are being considered throughout the industry, yet Del Monte continues to be bound by its aluminium-canned legacy.
The bankruptcy filing highlights the ways in which dramatic trade policy changes, ostensibly aimed at strengthening home country metal sectors, can instead wash through food supply chains. Del Monte's search for a buyer comes as analysts indicate that the crisis bodes ill for established can-dependent brands.
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