Dive Brief:
- Del Monte Foods, the closely held maker of canned fruits and vegetables, said net earnings rose to $19,9 million in the most recent quarter from $6.3 million a year earlier.
- Driving the growth were strong sales among the pet food brands, which include Milk-Bone and Kibbles 'n Bits.
- Sales of consumer foods fell 5.5%.
Dive Insight:
The poor showing in consumer foods will add to the already nearly universal opinion in the investment community that Del Monte will sell its consumer food division and concentrate on pet food. Frankly, we'd be surprised if Del Monte didn't sell.
More interestingly, the sale of Del Monte Foods could put an end to one of the more annoying little things in all of the food industry. Del Monte Foods is constantly confused with Fresh Del Monte Produce. Until 1989, the two companies were one. But a spin-off the fresh produce business gave the world two companies called Del Monte. Trademark problems have ensued.
Among the possible buyers of Del Monte Foods canned foods, according to Wall Street watchers, is Fresh Del Monte Produce. Here's hoping they win the bidding and put an end to the two-Del-Monte dilemma.
