Food and pet food maker Del Monte Foods Co. holds its annual meeting on Thursday and company executives are expected to talk about the high commodity prices that are hampering profits.
The San Francisco-based company, maker of Del Monte, College Inn and Snausages brands, swung to a loss in its most recent fiscal first-quarter. It said the loss was because costs of ingredients and raw products climbed faster than the company could raise prices on its products.
Del Monte has said it does not expect increased costs to be fully offset by pricing and cost reduction efforts in its fiscal 2009 year, so it expects profit to decline year-over-year.
Richard G. Wolford, chairman and CEO, has said the company is being proactive by raising prices and bolstering productivity.
The company announced in late June it will sell its seafood business, which includes the StarKist brand, to South Korea's Dongwon Enterprise Co. for $363 million. The move is part of Del Monte's effort to focus on higher margin produce and pet foods.
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