So much for your early recollections of canned peas and carrots on the side or canned peach pies. When it comes to all things produce, Americans seem to be becoming more and more adamant that fresh is better these days.
Given the announcement that Del Monte Foods, one of the largest producers of canned fruits and vegetables, is filing for Chapter 11 bankruptcy and going through a reorganization with new management, at least that is what some food industry experts are claiming.
“We will be better positioned for long-term success with an improved capital structure, enhanced financial position, and new ownership,” Greg Longstreet, the CEO of Del Monte Foods, stated in a statement.
Fresh Del Monte Produce (FDP), which specializes in products like fresh pineapples and bananas, is a different company from Del Monte Foods, a U.S. division of Singapore-based Del Monte Pacific (SG:D03).
The company’s financial issues, according to Longstreet, were “challenges intensified by a dynamic macroeconomic environment.” The profusion of fresh food on grocery shelves, however, is proof that manufacturers of canned goods have been battling a generational change that favors fresh fruits and vegetables, according to experts.
In fact, fifty years ago, the average grocery store produce aisle would have contained fifty items, according to Phil Lempert, an industry expert who created the Supermarket Guru website and platform. It’s closer to 400 now.
It all stems from the foodie revolution, which experts believe has made taste and texture the top priorities for consumers. Examples of this include the emergence of the Food Network (WBD) and the expansion of the gourmet-focused Whole Foods (AMZN) chain. Canned vegetables just cannot match on the gastronomic level, even though it may be less expensive and have a longer shelf life than fresh produce.
“For me, everything has to be high-quality, fresh ingredients prepared correctly,” added chef Franklin Becker of New York. “If you wanted green beans, you had to get them in a can” is one example of how he remembers growing up with packaged goods. However, he acknowledged that times have changed and that he would only continue eating canned food if he “was trapped in nowhereland.”
“Canned produce has a negative reputation.” IBISWorld
However, this sentiment is shared by most American consumers, not only New York chefs. According to a recent IBISWorld market analysis, the canned fruit and vegetable processing business in the United States saw an average annual revenue loss of 0.4% during the previous five years, reaching $51.3 billion today. Additionally, the study predicted that it will continue to decline over the following five years.
IBISWorld stated, “Canned produce gets a bad rap,” referring to a poor customer perception fueled by worries about quality and health.
The irony is that, as long as it isn’t packaged with additional sugar or salt, canned vegetables can frequently be just as healthful as the fresh kind, according to dietary and other experts. This is so that the food can maintain all of its important nutrients because it is usually harvested at its freshest when it is canned.
According to Steve Zagor, a seasoned food industry consultant and professor at Columbia University’s business school, there is no way to discourage a lot of customers.
“Canning was the height of modern food preservation, and that height has grown stale,” said Zagor.
However, scientists argue that because canned goods are relatively inexpensive, customers tend to use them more during difficult economic times. According to Lempert, it would be particularly relevant if lower-income households are forced to find methods to conserve money after losing government support for food purchases as a result of the federal budgetary legislation that is presently being reviewed.
In order to appeal to modern consumers, Lempert stated that manufacturers of canned goods are trying to improve the taste aspect by adding additional spices and modifying recipes.
“We’re seeing a bunch of whole new flavors,” he stated.
