Del Monte Pacific's stock (D03.SI) plummeted 8.20% in pre-market trading on Thursday, following news that its U.S. unit, Del Monte Foods, filed for Chapter 11 bankruptcy. The dramatic drop reflects investor concerns about the financial implications of the bankruptcy filing on the broader Del Monte Pacific group.

Del Monte Foods, a major player in the canned fruits and vegetables market, cited several factors contributing to its financial troubles. These include a significant decline in consumer demand following the pandemic-driven surge, increasing interest burdens on over $1 billion in debt, and challenges with excess inventory. The company has secured a $165 million debtor-in-possession loan to finance its operations during the bankruptcy proceedings. Notably, Del Monte Pacific and its non-U.S. units are not included in the bankruptcy filing.

The bankruptcy filing underscores broader shifts in the food industry, with consumers increasingly favoring fresh produce over canned alternatives. Industry experts point to a "foodie revolution" that has emphasized taste and texture, putting pressure on traditional canned goods manufacturers. While Del Monte Pacific evaluates the financial implications of its U.S. unit's bankruptcy, the company stated it would disclose any material impacts, including possible impairment charges, in accordance with applicable listing rules. This development has clearly shaken investor confidence, as reflected in the significant stock price drop.