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Shining a light on PE ownership.

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DE

Del Monte Foods

food_consumer
PE-OWNED

Iconic food producer of canned fruits and vegetables.

PE-OWNED

Acquired by KKR2011-03-01

View PE Firm Profile

What Made It Great

“

Fresh-tasting canned fruits and vegetables for wholesome family meals.

What PE Will Likely Do

Predictions

Del Monte's canned fruits and vegetables will start using lower-quality, cheaper ingredients to reduce costs

HIGH LIKELIHOODBased on: KKR's history of cost-cutting tactics in its portfolio companies, including ingredient downgrades, shrinkflation, supply chain changes, and formula changes

Del Monte will likely start 'shrinking' can sizes while maintaining or even increasing prices

HIGH LIKELIHOODBased on: The food consumer industry playbook, which shows these tactics are commonly used by PE firms in this sector

Del Monte may switch to lower-cost suppliers and manufacturing options, impacting product freshness and taste

HIGH LIKELIHOODBased on: The negative consumer impact score of 0.36 for KKR's acquisitions, indicating a track record of harming the consumer experience

Del Monte may alter its product recipes to further reduce ingredient costs, changing the flavor profiles of its iconic canned goods

HIGH LIKELIHOODBased on: The negative consumer impact score of 0.36 for KKR's acquisitions, indicating a track record of harming the consumer experience

Expected Timeline

Phases
0-6 monthsCompleted

“0 to 6 months months”

Minimal visible changes as ownership transitions, but behind-the-scenes supplier and formula changes begin

6-12 monthsYOU ARE HERE

“6 to 12 months months”

Consumers start noticing subtle differences in the taste, texture, and quality of Del Monte's canned fruits and vegetables

12-24 months

“12 to 24 months months”

Del Monte's brand reputation begins to suffer as consumers complain about the declining quality of its iconic products, leading to significant market share loss

Similar Cases

Other companies that followed a similar path after PE acquisition

Operating

Birds Eye

Permira·2009

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Kraft Heinz

3G Capital·2015

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Bumble Bee Foods

Lion Capital·2010

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Weight Watchers

Artal Group·1999

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Atkins Nutritionals

Roark Capital·2017

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What You Can Do

Take Action

Actions

  • Be on the lookout for changes in the taste, texture, or quality of your favorite Del Monte canned fruits and vegetables

  • Consider switching to alternative brands that prioritize quality and freshness if you notice a decline in Del Monte's product quality

  • Voice your concerns and feedback to Del Monte and its new owners to advocate for maintaining the brand's original high standards

Alternatives

Research independent alternativesSAFE

Look for family-owned or employee-owned businesses

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"Del Monte Foods is now PE-owned. Here's what that means for you."