Del Monte unhooks Charlie Tuna

Del Monte unhooks Charlie Tuna Del Monte Foods Co. said 'Sorry, Charlie' to its seafood businesses this week, agreeing to sell the firm's various seafood subsidiaries — including StarKist and mascot Charlie the Tuna — to South Korean food conglomerate Dongwon Enterprises for $363 million.
   San Francisco-based Del Monte said the sale would improve margins, eliminate a volatile earnings source, and reduce debt. The firm's seafood businesses generated about $560 million in fiscal year 2008.
   'Given the unique dynamics of our seafood business, including its heavy dependence on a single input cost and participation in a comparatively lower growth category, StarKist was no longer an ideal fit for Del Monte, given our sharpened strategic focus going forward,' said Rick Wolford, Del Monte chief executive officer and chairman.
   Del Monte said that following the divestiture it plans to focus on higher margin produce and pet foods, including its 9Lives and Milk-Bone brands.
   Under terms of the deal, Dongwon will take over Del Monte manufacturing facilities in American Samoa; Manta, Ecuador; and StarKist manufacturing assets in Southern California and in Guayaquil, Ecuador. About 35 salaried Del Monte seafood business positions are also expected to join Dongwon.
   'We believe that the acquisition of StarKist seafood will help Dongwon establish a strong foothold and penetration in the U.S. market as we look to drive Dongwon’s initiatives for globalization,” said Ingu Park, Dongwon Enterprise vice-chairman. 'We believe that StarKist is highly complementary to our existing portfolio and to our long history of operating in the seafood business. We look forward to leveraging the skills and knowledge of the talented StarKist team and building upon the great business they have created.'