Del Monte who? Del Monte Pacific
By Our Corporate Bureau | 29 Sep 2007
With so many companies peddling the Del Monte brand, there is bound to be confusion about who is who. The Del Monte brand is sold across the world; but its ownership is split. The websites of Del Monte Corporation of the US and Fresh Del Monte Produce spell it out in no uncertain terms that they have nothing to do with the other Del Montes.
On the Del Monte Pacific website, you see the notice: "Del Monte Pacific Limited and its subsidiaries are not affiliates of Del Monte Corporation and its parent, Del Monte Foods Company, or Fresh Del Monte Produce, Inc. and its subsidiaries, or Kikkoman Corporation and its subsidiaries, including Del Monte Asia Pte Ltd."
Del Monte Pacific is the smallest of the various Del Monte brand-owning companies. Del Monte Corporation of the US, had sales of $3.42 billion in its fiscal ended 29 April 2007. Fresh Del Monte Produce had sales of $3.21 billion in 2006. Kikkoman Corporation, which in 1990 January bought perpetual marketing rights for the Del Monte brand in the Asian-Pacific region, excluding the Philippines, had sales of $3.33 billion in the year ended March 2007. Del Monte Pacific had sales of $243 million in 2006.
Del Monte Pacific Ltd is 80 per cent owned by NutriAsia Pacific Ltd, a part of the NutriAsia group of companies, which is in turn majority-owned by the Campos family of the Philippines. This group is in the liquid condiments, specialty sauces and cooking oil business in the Philippines. Its flagship brand is UFC dominates the local catsup and hot chili sauce categories.
Del Monte Pacific is engaged in the production, marketing and distribution of branded food and beverage products. It owns the Del Monte brand in the Philippines, where it enjoys leading market shares for pineapple juice, juice drinks, processed pineapple and mixed fruits, tomato sauce, spaghetti sauce and tomato ketchup. It also markets products under its second-tier brand, 'Today's'.
The company also holds the exclusive rights to produce and distribute food and beverage products under the Del Monte brand in the Indian sub-continent. It owns Del Monte Foods India Pvt Ltd, which is engaged in the production, distribution and sale of processed fruit and vegetable products.
The group also owns the Great Lakes Fresh Foods and Juice Company Ltd. Great Lakes is a premium fruit juice producer in China, which sells juices under the Great Lakes, Ming Lang, Rougemont and Welch's brands.
To get an idea of Del Monte Pacific's lineage, see this history, taken from the company's website:
Del Monte Pacific history
1926 California Packing Corporation (now Del Monte Foods) commenced its operations in the Philippines under Philippine Packing Corporation (Philpak, now Del Monte Philippines, Inc.).
1928 Philpak undertook its first commercial planting on more than a thousand hectares of prime agricultural land.
1930 The cannery received the first harvest of pineapples for processing.
1933 Philpak felt the effects of the Great Depression. The cannery was shut down and the plantation laid off most of its workers.
1941-1945 The Pacific War broke out. The US Army converted the pineapple fields into an airfield. Philpak shut down operations.
1945-1948 Rehabilitation of the plantation was completed. Replanting started by 1946 and the plantation delivered its first post-war harvest to the newly rebuilt cannery in 1948.
1957 Pineapple became one of the Philippines' top 10 agricultural exports.
1965 The Barrio Assistance Program, Philpak's community outreach and social responsibility programme, was organised.
1965-1985 Philpak grew into one of the largest pineapple production source in the world.
1980 Tobacco giant RJR acquired Del Monte Foods.
1983 Biscuit-maker Nabisco bought RJR. Del Monte Foods and Philpak became part of the RJR-Nabisco business.
1987 Philpak changed its name to Del Monte Philippines, Inc. (DMPI).
1990 In an event touted by Time magazine as the biggest leveraged buyout at the time, KKR (Kohlberg, Kravis and Roberts) won a bitter struggle for ownership of RJR-Nabisco. After the takeover, KKR sold Del Monte Foods to a consortium composed of Citicorp, Merrill Lynch, and Kikkoman in 1991.
Jan 1991 Del Monte Foods divested 49.9 per cent of its interest in DMPI to Japan-based Kikkoman Corporation (15 per cent) and to Europe-based Del Monte International, (35 per cent) which at the time was owned by Royal Foods of South Africa. Del Monte Foods retained a controlling 50.1 per cent stake.
Mar 1996 Del Monte Foods and Kikkoman divested their entire interest. Following the divestment, MCI, Inc. and Del Monte Royal became joint controlling shareholders.
May 1999 Del Monte Pacific Limited (DMPL) was incorporated as the holding company of the group.
Aug 1999 DMPL was listed on the Singapore Exchange. MCI, Inc. DMPL and Del Monte International each held 37.5 per cent stake with the public holding the remaining 25 per cent.
May 2000 The company launched its over-the-counter American Depository Receipt programme.
Nov 2000 The company implemented a share buyback programme.
Jan 2001 DMPI celebrated its 75th year in the Philippines.
Mar 2001 Italy-based Cirio SpA bought Del Monte Royal Food's interest in Del Monte International. Post Cirio acquisition, MCI Inc., held on to 21 per cent of DMPL shares while Cirio SpA increased its stake to approximately 40 per cent. The rest of the shares remained public.
