Listen: Crying Over Spilt Milk? Americas Largest Dairy Producer Files for Bankruptcy
"From one. Three I'm David Brown and this is business worse daily on this Wednesday November twentieth for anyone over with the age of thirty. The idea that milk is an industry could be in trouble once seemed unthinkable as well the notion that we might not need gas to fuel our cars or coal to run our power our plants goodness. How will they get things done? Well in the past milk wasn't so much choice as a commodity of basic household necessity. But things change in these days. These things are changing. Fundamentally witness last week's bankruptcy filing by Dean Foods America's largest producer of cow's milk and other dairy products the ninety four or your old company was founded by Samuel e Dean and Intrepid Entrepreneur who purchased the illinois-based Pekka Taneeka evaporated Milk Company in Nineteen Twenty Five. The business business grew and changed over the decades today. It owns fifty eight brands including dairy pure milk. land-o-lakes butter true move flavored milk's in friendly's ice cream now the once multibillion dollar conglomerate is struggling to stay alive with sales and profits down its stock has declined eighty percent over the last year. The company filed now for bankruptcy protection on November twelve and is exploring a sale to dairy farmers of America. That organization is a Kansas based cooperative of more than fourteen thousand dairy every farmers many of which are deemed suppliers. Dean foods blames shifting tastes for its current predicament. Quite simply Americans aren't drinking nearly as much milk as we used to. Since nineteen seventy five milk consumption has fallen by forty percent in recent years. You can pin some of the blame on the rapid rise of plant based MILKS folks from Soy to almond banana to Oat milk. Sales of plant based milk shot up nine percent last year. According to the plant based Foods Association at the same time sales of cow's milk fell six percent indeed dean foods may be kicking itself for getting rid of one of its most profitable divisions in twenty twelve. Oh saying it wanted to focus more on its core dairy business. Dean spun off White Wave. One of the biggest producers of soy and other Plant Milks the French Yogurt Company then owned bought White Way. For ten billion in two thousand seventeen in a seemingly prescient move dean must have had second thoughts about forsaking the fast growing plant the milk market just last year. It took a majority stake in Boulder Colorado Flax Milk Company. Good Karma too little too late however and competition from plant. Milk isn't in Dean Foods. Only problem healthy alternatives to cow's milk have exploded more and more of us are drinking sparkling water Bucci's teas and organic juices not dimension simply plain old water. That's hurting milk sales so to the decline of lowly breakfast cereal. no-one pours milk on the energy bar. They eat during their morning commute. You'd either so there's that and then there is. Almost an entirely separate trend. Big retailers like Costco and Walmart are deciding. They need to control their own food. Supplies supplies for cost reasons and also for transparency into their supply chains last year Walmart one of Dean's biggest customers built. Its own milk processing plant in Indiana according to CNN Walmart can now supply five hundred of its thirty seven hundred stores with its own cheaper milk no longer as good a customer Walmart now poses a threat. Dean foods has secured eight hundred fifty million dollars in what's called debtor-in-possession financing that funding will allow it to meet its pension allegations and"