Skip to comments.No. 1 milk company declares bankruptcy amid drop in demand
Posted on 11/12/2019 10:18:52 AM PST by Red Badger
Dean Foods, America's biggest milk processor, filed for bankruptcy Tuesday amid a steep, decades-long drop-off in U.S. milk consumption blamed on soda, juices and, more recently, nondairy substitutes.
The Dallas company said it may sell itself to the Dairy Farmers of America, a marketing cooperative owned by thousands of farmers.
"Despite our best efforts to make our business more agile and cost-efficient, we continue to be impacted by a challenging operating environment marked by continuing declines in consumer milk consumption," CEO Eric Berigause said in a statement.
Since 1975, the amount of milk consumed per capita in America has tumbled more than 40%, a slide attributed to a number of reasons but mostly the rise of so many other choices, including teas, sodas, juices and almond and soy milk.
(Excerpt) Read more at weartv.com ...
Per Capita it is down, but overall it is up... this is more to do with Wal Mart and other chains cutting ties with Dean and getting their own direct suppliers.
Part of the problem for them is the fact that the idea of Milk being good for you, has faded.
Wowsa. I drink almond milk but not a big milk drinker period.
If this is true, then why is milk so expensive?................
We tried it, but didn’t like the taste or the extra cost..............
The vegans will milk this to show they are winning.
They need to bring back the “Milk: It does a body good!” commercials from the 70’s................
I almost never see their product except in convenience stores.
Just about every grocery store people I’m in has their own private label brand. I can tell you the kids in my family drink as much of it as I did growing up.
Milk is expensive because of a) government regulations, b) government regulations, and c) government regulations.
Somehow, someway, this will be linked to AGW...................or Trump................
It’s 2;35 a gallon for 2 per cent here in Central Va at Kroger and 1”50 a half gallon. I do know it’s more expensive in some areas.
Expensive? I just bought a gallon of whole milk for $.98.
I live in SC. Admittedly that is a sale price but normal everyday price is about $1.40 per gallon
d) All of the above.
e) Government subsidies.................
“...Despite our best efforts to make our business more agile and cost-efficient, we continue to be impacted by a challenging operating environment marked by continuing declines in consumer milk consumption,” CEO Eric Berigause...”
I think I see the problem. That’s MBA speak for we don’t know what the hell we are doing. (”Agile” being the tip-off word.)
It’s usually around $3.60-$3.80 here in NW Florida................
Hell the major brands used to run direct distribution chanels. Over time they ceased to maintain a cadre of personnel who knew how to run that kind of operation.
I suspect that an electronic ordereing version of the old dairy delivery services could run in the black if properly managed today.
2.35 and 1.50....sorry about the sticky keyboard.
Exactly, that’s what I mean.. Dean got cut out and Wal Mart is not the only one... other larger chains are doing the same thing...
Overall Milk consumption is up, but Dean’s share of it has shrunk... WalMart cutting them out, hurt them bad.
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