Dissecting Del Monte: An HR Case on Crisis and Turnaround
- Brew Baritugo
- Sep 23
- 3 min read
Del Monte has reached a critical moment in its long history. Its U.S. arm has filed for Chapter 11 and entered a court-supervised sale process while securing debtor-in-possession financing to keep operating. Non-U.S. subsidiaries are excluded from the filing.
In the Philippines, the parent booked a multi-billion peso impairment tied to the U.S. unit. Its auditor issued a disclaimer, and trading on the local exchange was suspended for reporting issues.
The problems and the levers:
The financial shock is obvious. The deeper risk is trust across three fronts. Employees fear uncertainty. Investors question governance. Communities watch how the company shows up where it operates. To move forward, five levers matter most: stabilize the workforce, protect the employer brand, embed governance, pivot the talent base, and rebuild community trust.
Lever 1: Stabilize the workforce
When Jollibee absorbed losses from acquisitions and the pandemic, it steadied the organization by clarifying direction, protecting core Philippine operations, and communicating the path back to growth. The group swung back to profitability momentum after a P11.5 billion loss in 2020 and reported strong sales recovery in 2021. The lesson is simple. People can handle tough news if leadership makes the direction clear and shows up consistently. HR should institutionalize regular updates, open Q and A sessions, and retention for critical roles in supply chain, export, quality, and regulatory.
Lever 2: Protect the employer brand
Campbell Soup faced declining demand for traditional canned categories. Leadership reframed the portfolio toward health and wellness and executed moves such as acquiring organic and plant-based player Pacific Foods, then pruning non-core fresh assets like Bolthouse Farms to refocus and reduce debt. The point for Del Monte is not to copy the exact deals. It is to signal evolution to both consumers and employees. HR can help anchor that message internally so teams become credible ambassadors externally.
Lever 3: Embed governance
Nestlé’s ongoing scrutiny on nutrition and sustainability pushed it to open its supply chain to greater disclosure and to lean into categories that align with health science and plant-based demand. Credibility is earned through transparency and consistent behavior. Del Monte’s audit disclaimer makes governance a front-line concern. HR can refresh the code of conduct, make compliance visible, and tie leader evaluations to ethics as well as results.
Lever 4: Pivot the talent base
Food companies that survive disruption invest in capabilities for the market that is coming. Campbell’s organic and plant-based expansion, and Nestlé’s moves into health and plant-based, are talent stories as much as portfolio stories. For Del Monte, that means reskilling and hiring in R and D for healthier lines, supply chain analytics, and digital engagement. Protect core capability in the Philippines while the U.S. unit restructures.
Lever 5: Rebuild community trust
Reputation in food rests on how you operate in communities. Nestlé’s public supply chain disclosure is one model for how to show progress rather than just promise it. For Del Monte, allegations around land use and community impact require visible engagement, measurable commitments, and leadership trained for culturally sensitive dialogue. HR should make social responsibility part of performance objectives and publish progress.
The headlines are heavy, yet the path is practical. In the U.S., proceedings continue with operations funded while a sale is pursued. In the Philippines, credibility can be rebuilt with transparent reporting and disciplined execution. The food sector offers clear precedents. Jollibee’s return to growth after heavy losses. Campbell’s portfolio shift toward health and pruning of misaligned bets. Nestlé’s slow but visible push on transparency. The common thread is clarity, credibility, and capability. HR is central to all three.
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