Oooh, interesting closed session item on next week’s City Council agenda:
CONFERENCE WITH REAL PROPERTY NEGOTIATORS (54956.8) Property: 707 West Tower Avenue (Building 9), 650 West Tower Avenue (Building 41), Building 77
Negotiator: Jennifer Ott, Chief Operating Officer – Alameda Point Negotiating party: Del Monte Corporation
Under negotiation: Price and terms of payment
Interestingly enough the negotiator is not the City Manager. But Del Monte Corporation that is much much less vague than the two other closed session property negotiation items we have seen come up previously. But before we get all excited that Alameda will get back some canning factory a la the old Del Monte factor on Buena Vista, the Del Monte Corporation makes a lot more than just canned veggies these days.
A quick look at their website shows a few brands you are familiar with “for you” like Del Monte, S&W, Contadina and College Inn. The last one I have never heard of before. What I didn’t realize was how many brand Del Monte had for “your dog and cat” like Kibbles and Bits, Meow Mix and many many others. I also didn’t know that Del Monte’s corporate headquarters are in San Francisco and Del Monte employs 7600 employees and rakes in an impressive $3.8 billion in revenue.
However some quickie research shows that Del Monte Foods — the Del Monte I believe Alameda is negotiating with — has agreed to sell its “Consumer Products” side to Del Monte Pacific Ltd. (DMPL), a Philippines-based processed food company. DMPL is unrelated to Del Monte Foods. This deal is expected to close in 2014. From the article:
The San Francisco based company, which is partly owned by [private equity firm] KKR, has agreed to sell the Consumer Products business in order to focus its resources and efforts on capturing continued growth opportunities in its Pet Products business, which participates in an expanding $20 billion pet category, through greater emphasis on pet snacks and the pet specialty channel.
This agreement comes after a strategic review that determined a sale of the Consumer Products business provided the best opportunities for the growth and stewardship of the company’s two differentiated business portfolios.
Under the terms of the purchase agreement, the DMPL will purchase the brands and certain assets, and assume certain liabilities related to DMF’s consumer food business in the US, as well as equity interests in certain South American subsidiaries from DMF.
What this essentially means is that Del Monte Foods is getting out of the people food business and deciding to build on its pet food business instead. But no worries, you’ll still see the Del Monte human food brands on the shelves because DMPL is buying all of those assets and the licenses to sell under that name, but it appears that whatever Del Monte has planned for Alameda Point will probably revolve around pet food of some sort.
If the map is correct for Google, they are looking at buildings near the Bladium which is right smack in the “Town Center” portion of Alameda Point and was supposed to be the visual anchor for that neighborhood. But I’m guessing that the magic words “Del Monte” will eliminate any pressing desire to create a town center as long as Del Monte can be secured as a corporate tenant.