Dean Foods files for bankruptcy, plans to sell assets
November 12, 2019 By Nicole Heslip Filed Under: Ag Mergers & Acquisitions, Dairy, News
One of the nation’s largest milk processors, Dean
Foods, has filed for Chapter 11 bankruptcy and is in advanced discussions with
Dairy Farmers of America to sell most of its assets.
Deans has created a restructuring website for customers, suppliers, and vendors and says it will continue operations throughout the process.
The company says despite their best efforts to make the business more agile and cost-efficient; they continue to be challenged by continuing declines in consumer milk consumption. Last year, Deans also lost its largest customer Walmart after they build their own milk processing plant in Indiana.
Based in Dallas, Dean Foods is the largest processor and
direct-to-store distributor of fresh fluid milk and other dairy and dairy case
products in the United States. The company has more than 50 national, regional
and local dairy brands as well as private labels including DairyPure®, TruMoo®,
Country Fresh®, Dean’s®, Friendly’s®, LAND O LAKES®* milk and cultured
products, and a joint venture with Organic Valley® to distribute fresh organic
products to local retailers.
Dairy Management released a statement after the announcement saying domestic sales are up and cheese and butter consumption is at an all-time high in the U.S. DMI says with a constantly changing marketplace, U.S. dairy has and will continue to navigate the current economic environment successfully while meeting the needs of today’s consumers.
Dean Foods media
relations tells Brownfield the company is not currently conducting interviews
about the announcement.
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