Sustaining Growth



As a global branded food company, we bring to life health, wellness and nutrition, and sustain our people, the planet and our performance-the triple bottom line


The economic impact of Del Monte Pacific Ltd (DMPL) Group extends beyond our 5,800 plus regular employees. In addition, there are about 23,500 employees of service providers who work in all areas of our operations.

In the United States, Del Monte Foods, Inc (DMFI) is one of the largest producers, distributors and marketers of premium quality, branded fruits, vegetables and tomatoes for the US retail market. DMFI contracts with close to 800 farmers across US and Mexico which supply about 806,000 tons of produce. In aggregate, 100% of the tomatoes, 99+% of the vegetables and about 70% of the fruits we produce are grown in the US.

Our relationships with farmers extend more than three generations. The fruits and vegetables are contractually grown on farms. Some Del Monte fruit growers include farm families that have produced for Del Monte for over 70 years. Our growth has a broader implication for farms across the US.

Our pineapple plantations in southern Philippines encompass one city and 12 municipalities in Bukidnon and one city and six municipalities in Misamis Oriental, Mindanao. An estimated 20,000 families or approximately 100,000 individuals directly or indirectly depend on the Company in the Philippines.

Overall, our presence has immensely contributed to the region’s economic growth, creating a multiplier effect on the local economy by fueling local business, supporting the Group’s operations and serving the day-to-day needs of our employees and their families.


Directors visiting the pear and peach plant in Modesto, California, with management


Our Performance


1. The Group’s revenues were favourably impacted by the coronavirus                     pandemic. DMPL’s retail business in the US and Philippines posted higher           sales. The lockdown has made consumers stock their pantries with trusted         brands like Del Monte, Contadina, S&W and College Inn which offer healthy,       delicious, long shelf-life culinary products.

2. During the quarantine, the Group continued operating as an essential                 industry to meet the surging demand for food while ensuring the safety of its     employees and workforce.

3. The Group generated a turnover of US$2.1 billion in FY2020, 9% higher than        prior year.

4. DMPL reported a lower EBITDA of US$142.2 million and a net loss of US$81.4     million due to one-off expenses totaling US$113.6 million, primarily resulting     from US$59.9 million from the plant closures/sale in the US in the second           quarter of FY2020, which were mostly non-cash expenses, and US$47.1               million dividend tax.

5. Without one-off expenses totaling US$113.6 million, the Group generated an     EBITDA of US$225.7 million and a net profit of US$32.2 million, significantly         higher by 45% and 104%, respectively.

6. DMFI maintained its leading market share position for the full year in canned     vegetable and fruit. Business fundamentals remain on solid ground with             strong shelving, new innovation and sustained marketing investments.

7. DMFI closed/sold four plants in the US in FY2020 for more efficient and lower     cost operations. The asset-light strategy is expected to achieve 95% capacity       utilisation for vegetable in the current pack season, up from 50%.

8. The Group successfully completed the refinancing of DMFI which raised new     financing of US$1.3 billion consisting of a US$500 million five-year bond               issue, a new three-year Asset-Based Loan of US$450 million and equity               contribution of US$378 million from DMPL, thereby recapitalising DMFI’s             balance sheet. DMPL invested US$150 million in new equity and converted         US$228 million of Second Lien Repurchase Loans into common equity in             DMFI.

9. DMFI’s integrated master brand campaign, “Growers of Good,” promotes Del     Monte as an advocate for doing what is good – Del Monte nurtures the               Earth’s goodness today to grow a healthier and more hopeful tomorrow.

10. The Group will strengthen its product offerings and enter new categories. It        will focus on business segments which are on trend and innovate in pursuit        of health and wellness to address consumer needs.

11. Del Monte Pacific will grow its branded business while reducing non-                     strategic business segments. It will build its distribution in emerging                      channels and continue to leverage fast-growing e-commerce opportunities        especially amidst the lockdown.

12. The Group completed the private equity investment of a 12% stake in Del           Monte Philippines, Inc (DMPI) for US$120 million, the proceeds of which               were used for repayment of DMPL’s bank loans. This is highly commendable       amidst a stressed and declining capital market with the PSE index down               around 25% from the peak of 2019.

13. DMPI leads in market share position in major categories it competes in.

Worzella Farms, one of Del Monte’s growers since 1969 in Wisconsin, USA


Responsible Sourcing Practices

The Group acknowledges the importance of building a strong partnership and healthy relationship with its suppliers. DMPL conducts business with its customers on the basis of integrity, mutual interest and fairness. The Group prohibits the practice of forced and child labour.

1. The Company performs periodic audits of contract manufacturers and direct     suppliers. Some independent and unannounced audits check quality                   assurance and compliance.

2. It is our policy to seek opportunities to buy from suppliers where quality,             price and delivery of service are competitive.

3. In the US, DMFI has a Supplier Code of Conduct that applies to any entity             providing goods or services, including suppliers and subcontractors.

      a. The objective is for suppliers to practice and uphold ethical business                    standards.

      b. Del Monte’s Supplier Diversity Programme enables small and diverse                   businesses to be considered fairly as subcontractors and suppliers.

4. DMPI has a Code of Business Conduct which outlines the Company’s                   practices in building its relationship with suppliers while adhering to the             principles of integrity, mutual interest and fairness in conducting business.

5. In selecting suppliers, Del Monte in the Philippines uses its Supplier Quality         Management Programme which assesses the quality and delivery                         performance, feedback, continuous improvement programme for all                   material suppliers and toll manufacturers.

6. The objective of the programme is to align DMPI’s quality parameters with         that of suppliers, provide suppliers with performance scorecards, classify           suppliers into certified, preferred, approved and conditional suppliers, and         align suppliers with DMPI’s goals that will support growth in the next five             years. The programme helps determine allocation of the Company’s                     requirements to suppliers.

7. The suppliers are rated based on quality performance, delivery performance     and competitiveness.