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Author Topic: Del Monte Swings to Loss  (Read 342 times)
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3catkidneyfailure
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« on: August 28, 2008, 10:34:25 AM »

  
 http://online.wsj.com:80/article/SB121992616316279529.html?mod=googlenews_wsj
 
Del Monte Swings to Loss Amid Rising Input Costs
By David Benoit
Word Count: 321  |  Companies Featured in This Article: Del Monte Foods
Del Monte Foods Co. swung to a fiscal first-quarter loss as cost inflation continued to offset price increases, especially in pet-food production.

The canned- and pet-food company reported a net loss of $10.1 million, or five cents a share, compared with year-earlier net income of $3.5 million, or two cents a share. The latest quarter included a one-cent loss from restructuring charges, while ...


I don't subscribe to Wall Street Journal. So that's all I can get. Hale, hale and hallelujah, you had it coming to 'ya, for Ol' Roy, Pounce
Cat treats, and every other bad thing you manufacture.
 
 
« Last Edit: August 28, 2008, 10:48:36 AM by 3catkidneyfailure » Logged
JJ
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« Reply #1 on: August 28, 2008, 01:36:22 PM »

Ya mean the canned fruit couldnt make up the no longer coming in money from the pet food? Awwwwwwww, get out the violins...
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3catkidneyfailure
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« Reply #2 on: August 28, 2008, 01:52:14 PM »

Not this quarter, JJ. At least the pets got $10 million this time. But maybe not the next quarter:

http://www.reuters.com:80/article/rbssConsumerGoodsAndRetailNews/idUSN2827127720080828
UPDATE 1-Del Monte Foods reports quarterly loss
Thu Aug 28, 2008

Does anyone know what they've renamed Del Monte brands as in terms of pet food?
Are they still co-packing for Wal-Mart?
« Last Edit: August 28, 2008, 01:57:34 PM by 3catkidneyfailure » Logged
purringfur
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« Reply #3 on: August 28, 2008, 02:16:15 PM »

{Purringfur raises glass in the air.  Pets are slapping high five's all around.}

Here!  Here!  Hoping for an even greater loss NEXT quarter, maybe double this quarter's loss!



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Remember the thousands & thousands of pets that died to give US a wake-up call about the safety of ALL food.
JustMe
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« Reply #4 on: August 28, 2008, 02:36:51 PM »

What's to celebrate?  You know what happens when companies have to cut corners because they're operating at a loss.  They make it up by laying off people and/or cutting corners on their ingredients, using cheaper and cheaper ingredients.  Angry  Many people still use their products.
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3catkidneyfailure
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« Reply #5 on: August 28, 2008, 02:47:50 PM »

I understand, JustMe. But when consumers trusted them in 2007, their products harmed or worse many, many pets.
So perhaps unless they can demonstrate that DelMonte is much more careful now -- and I can't see anything
on their website -- consumers should try to avoid their brands:
http://www.delmonte.com/brands/

For your dog:
Kibbles 'n Bits
Milk-Bone
Pup-Peroni
Meaty Bone
Snausages
Nature's Recipe
Gravy Train
Canine Carry outs
Jerky Treats

For your cat:
9Lives
Meow Mix
Pounce
Nature's Recipe

I don't know whether Del Monte is producing any pet foods currently for Wal-Mart.

Just my personal position: When I can see the manufacturers doing everything they can to improve the quality and safety
of commercial pet foods, removing bad ingredients, using quality control and safety testing, so that nothing harmful remains
off the "radar screen" in my pet's food as bought, then I'll cease questioning them. I haven't personally seen that I don't believe
and would very much like to.
« Last Edit: August 28, 2008, 03:00:21 PM by 3catkidneyfailure » Logged
JJ
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« Reply #6 on: August 28, 2008, 05:50:28 PM »

3cat I too would like to believe that this would happen but have, like you, seen no proof companies are taking any of this pet food seriously. JustMe if people are losing their jobs why dont they speak up and tell the company to do things better and people will flock to buy their products but the same ole same ole just ain't gonna cut it anymore with a lot of people on here who have lost or continue to nurse sick pets everyday.

When we can actually see a company stand up and say 'sorry, we made a boo boo and are going to do our darndest to gain your trust again and fix it', well until that happens I'll spend my dollar elsewhere for the safety of my pet and myself.

Those who lose their jobs - blame the corporation where you work - apparently your not important to them either or they would change their way of doing business.
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JustMe
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« Reply #7 on: August 28, 2008, 06:41:08 PM »

I'm worried about what could happen to the ingredients with the cost of everything going up. 
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« Reply #8 on: August 28, 2008, 06:44:12 PM »

JustMe probably they will cut to the cheapest or cheaper ingredients but the companies that want to keep a customers business will slightly raise the prices and not cut the quality out, don't you think?
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lesliek
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« Reply #9 on: August 28, 2008, 07:06:55 PM »

Hersheys & McCormicks have already said they are going to start using cheaper ingredients. Time to stock up if you use any of their products.
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JustMe
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« Reply #10 on: August 28, 2008, 07:12:31 PM »

JustMe probably they will cut to the cheapest or cheaper ingredients but the companies that want to keep a customers business will slightly raise the prices and not cut the quality out, don't you think?
That's what I'm thinking, too, JJ. 
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Never forget our cats and dogs and the Pet Food Recalls of 2007; the reason most of us are here!
menusux
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« Reply #11 on: August 29, 2008, 06:45:00 PM »

I understand, JustMe. But when consumers trusted them in 2007, their products harmed or worse many, many pets.
So perhaps unless they can demonstrate that DelMonte is much more careful now -- and I can't see anything
on their website -- consumers should try to avoid their brands:
http://www.delmonte.com/brands/

For your dog:
Kibbles 'n Bits
Milk-Bone
Pup-Peroni
Meaty Bone
Snausages
Nature's Recipe
Gravy Train
Canine Carry outs
Jerky Treats

For your cat:
9Lives
Meow Mix
Pounce
Nature's Recipe

I don't know whether Del Monte is producing any pet foods currently for Wal-Mart.

Just my personal position: When I can see the manufacturers doing everything they can to improve the quality and safety
of commercial pet foods, removing bad ingredients, using quality control and safety testing, so that nothing harmful remains
off the "radar screen" in my pet's food as bought, then I'll cease questioning them. I haven't personally seen that I don't believe
and would very much like to.

http://www.delmonte.com/careers/default.aspx?page=ca_ourlocations

"Our Locations
"Where are we? We are all over the country.

"Bloomsburg, PA: Processing Plant & Distribution Center

"Located in Northeast Pennsylvania, the Bloomsburg facility was originally built by the Hunt Brothers in 1967 as a tomato processing plant and was later acquired by Campbell's to manufacture soup and pet food. In 1987 Heinz bought the facility and dedicated it to the manufacture of canned pet food. And in 2002 Del Monte Foods acquired the facility as part of the purchase of Heinz pet food operations. The plant runs 24-hours, 5-days-a-week on a 3-shift operating schedule. Currently there are 390 full time employees assigned to the Cannery and 147 full time employees in the Distribution Center. The cannery produces approximately 50 million cases of 9Lives®, Puss'n Boots® and Kozy Kitten® canned cat food and Kibbles 'n Bits, Skippy® and Ken-L Ration® canned dog food. The plant also produces pet food for Wal-Mart under the Special Kitty and Ol'Roy labels.

"Lawrence, KS: Processing Plant
The Lawrence plant has produced Kibbles 'n Bits® dog food since 1981. The dog food is one of the market's best sellers, giving pet parents the opportunity to feed their dogs a food that combines crunchy and chewy bits. The plant's 134 employees work to produce about 497 million pounds of Kibbles 'n Bits® dog food a year — 9.9 million pounds a week and 1.7 million pounds a day. The Kibbles 'n Bits® brand includes seven products, each featuring a different flavor.

"Bentonville, AR: Sales Wal-Mart Team

"Del Monte's Bentonville, Arkansas office is home to the Wal-Mart Sales team that consists of 32 employees working in Category Management, Business Development, Retail Operations, Customer Deductions, Supply Chain and various other analytical capacities. Also co-located at this office is the Emerging Channels Sales team which supports the Sam's Club account.

"Bentonville is the hometown of Wal-Mart, the world's largest retailer. The Del Monte Wal-Mart team recently received the Vendor of the Quarter award from Wal-Mart."

http://www.wikinvest.com/stock/Del_Monte_Foods_Company_(DLM)

"As with many consumer goods manufacturers, Del Monte depends heavily on Wal-Mart. The world's largest retailer is by far the company's primary customer, generating 31% of the food maker's sales in fiscal 2007. Overall, Del Monte generated $3.41 billion in revenue during fiscal 2007, a 14% increase from the previous year."

W-M did have some type of arrangement also with Simmons for some of the SK & OR:

http://itchmoforums.com/news-recall-related/wms-other-copackerswet-dog-foodnonmf-t3765.0.html

Simmons has been recently cited by FDA for the same problems which plagued Evanger's and Castleberry's:

http://itchmoforums.com/news-recall-related/simmons-pet-food-inc-receives-warning-letter-from-fda-t5894.0.html

It would appear that the DM-WM agreement for pet food and treats continues on.
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menusux
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« Reply #12 on: August 29, 2008, 06:52:57 PM »

http://www.petproductnews.com/headlines/2008/08/28/rising-ingredient-costs-squeeze-del-monte-profits.aspx

Pet Product News August 28, 2008

Rising Ingredient Costs Squeeze Del Monte Profits

"Del Monte Foods Co. of San Francisco reported its operating income for its pet products division fell 64.9 percent to $15.4 million for its first quarter ended July 27 from $43.9 million in the year-ago period. Pet product sales for the quarter increased 10.9 percent to $342.7 million, from $308.9 million in the year-ago period.

"The company attributed the decrease in operating income to higher ingredient and other costs, which outpaced the company’s own pricing increases. The pet products business also had higher expenses related to centralizing its marketing functions in San Francisco, higher marketing costs and consumer migration to larger sizes, which partially offset the impact of pricing impacts, Del Monte reported.

"Still, increased pricing was the primary driver in the sales increase. The company also saw volume growth for new and existing products. Dry pet sales were particularly strong due to promotional efforts, the company reported."

No more cheap CN deals.....
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3catkidneyfailure
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« Reply #13 on: August 30, 2008, 07:01:39 AM »

Then based on increasing reports of commercial pet food ingredients "transitions" due to higher
ingredient prices, I'll speculate that the pet food recalls of 2007 will happen again sooner, rather than
later. It can be up to six months before ingredient changes appear on labels because the government regulators
don't enforce labeling rules. So if you want to know what's in pet food, make it yourself unless you're seeing
these commercial companies make changes for increased safety that I can't see. You can bet that manufacturers
like Del Monte that are losing money producing foods for contract retailers like Wal-Mart won't hesitate to use
another ChemNutra type cheap ingredient supplier. We all waited too long to sound possible alarms in 2006 and 2007.
So if the commercial food you're feeding results in changes in your pet's behavior or pet illness, consider
carefully "ingredient transitions."

cross-posted:
http://itchmoforums.com/news-recall-related/canadaefelidae-formula-changes-t6095.0.html

http://itchmoforums.com/your-problems-with-pet-food/is-there-another-big-problem-brewing-out-there-t6064.0.html
« Last Edit: August 30, 2008, 08:15:41 AM by 3catkidneyfailure » Logged
JJ
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« Reply #14 on: August 30, 2008, 08:39:52 AM »

3cat interesting point your raised on people waiting too long to sound the alarm. Would you be able to elaborate on that more for all of us. Like how many people were aware there was a problem and where did they find out the information before the first apperance in the news about the food(s)?
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