A SUBSIDIARY of Del Monte Pacific Ltd. acquired certain assets of a US broth brand to expand its retail presence, said the Philippine-listed holding firm on Thursday.
Del Monte Foods, Inc., the US subsidiary of Del Monte Pacific, acquired the assets associated with ready-to-use stock and broth brand Kitchen Basics from McCormick & Co.
The acquired assets comprise intellectual property and inventory with an aggregate amount of $99 million. The acquisition was financed by the unit’s “available credit facilities.”
“We’ve seen heightened interest in broth and stocks over the last few years as consumers double down on home meal preparation, health and wellness,” Del Monte Foods Chief Marketing Officer Bibie Wu said in a press release.
Kitchen Basics was founded in 1996 and pioneered liquid stock in the United States. Its products are distributed nationally in the US and include a range of conventional and organic stock and broth offerings.
“The acquisition of Kitchen Basics will enable us to leverage synergies across our business to scale our broth and stock portfolio across North America,” Del Monte Foods President and Chief Executive Officer Greg N. Longstreet said.
“As we plan for the next decade of growth, we’re committed to strengthening our branded product portfolio to meet consumers’ changing needs,” Mr. Longstreet added.
Del Monte Pacific, together with its subsidiaries, is a global branded food and beverage company that caters to today’s consumer needs for premium quality, healthy products.
Its heritage brands include Del Monte, S&W, Contadina and College Inn — some of which originated in the US.
Del Monte Foods owns other trademarks such as Orchard Select, Fruit Refreshers, Veggieful, and Bubble Fruit.
Del Monte Pacific’s Philippine subsidiary, Del Monte Philippines, Inc., owns trademark rights to Del Monte, Today’s, Fiesta, 202, Fit ‘n Right, Heart Smart, Bone Smart and Quick ‘n Easy in the Philippines.
At the stock exchange on Thursday, Del Monte Pacific shares lost 66 centavos or 4.65% to P13.54 apiece. — Justine Irish D. Tabile