Leroy N. Soetoro
2019-11-14 20:13:57 UTC
https://www.cnn.com/2019/11/12/business/dean-foods-bankruptcy/index.html
New York (CNN Business)Dean Foods, America's largest milk producer, is
filing for bankruptcy.
The 94-year-old company has struggled in recent years because Americans
are drinking less cows milk. 2019 has been particularly brutal: the
company's sales tumbled 7% in the first half of the year, and profit fell
14%. Dean Foods (DF) stock has lost 80% this year
The company, which produces some of the country's most recognizable milk
and dairy products, including Dairy Pure, Organic Valley and Land O'Lakes
milks, has blamed its struggles on the "accelerated decline in the
conventional white milk category."
The company is saddled with debt and has been unable to fund all of its
workers' pensions. So on Tuesday, Dean Foods filed for Chapter 11
bankruptcy protection to keep the business operating, reorganize its debt
and help fund the pensions while it looks to sell the company.
Dean Foods said in a statement that it is working with the Dairy Farmers
of America cooperative on a potential deal, in which the cooperative would
buy almost all of the company.
As part of the bankruptcy process, the company secured $850 million in
financing from its existing lenders, including Rabobank (RSWLDD), to keep
the company running.
Once a staple of the American refrigerator, milk has slowly fallen out of
favor with consumers as they seek less-sugary or plant-based alternatives.
The global market for milk alternatives is expected to top $18 billion
this year, up 3.5% from 2018, according to Euromonitor. That's still a
fraction of the traditional milk market which will come in at just under
$120 billion globally this year.
Sales for cow's milk has been declining for the past four years. Sales for
the past 52 weeks, ending on October 26, was around $12 billion, according
to data Nielsen provided to CNN Business. That's a decline from $15
billion during a similar time period in 2015. All types of cow's milk,
such as 1%, 2%, skim and fat-free milk sales have all declined.
In contrast, and while still much smaller, sales of oat milk has jumped
636% to $53 million over the past year.
That's not the only problem Dean Foods has faced. Walmart (WMT), which was
one of Dean Food's biggest customers, dropped them last year after
building its own dairy plant.
--
No collusion - Special Counsel Robert Swan Mueller III, March 2019.
Donald J. Trump, 304 electoral votes to 227, defeated compulsive liar in
denial Hillary Rodham Clinton on December 19th, 2016. The clown car
parade of the democrat party ran out of gas and got run over by a Trump
truck.
Congratulations President Trump. Thank you for cleaning up the disaster
of the Obama presidency.
The Obama-led Committee on Foreign Investment in the United States (CFIUS)
approved Uranium One in fall 2010. With a little luck, we'll see
compulsive liar Hillary Clinton in jail before she dies.
Under Barack Obama's leadership, the United States of America became the
The World According To Garp.
Obama increased total debt from $10 trillion to $20 trillion in the eight
years he was in office, and sold out heterosexuals for Hollywood queer
liberal democrat donors.
New York (CNN Business)Dean Foods, America's largest milk producer, is
filing for bankruptcy.
The 94-year-old company has struggled in recent years because Americans
are drinking less cows milk. 2019 has been particularly brutal: the
company's sales tumbled 7% in the first half of the year, and profit fell
14%. Dean Foods (DF) stock has lost 80% this year
The company, which produces some of the country's most recognizable milk
and dairy products, including Dairy Pure, Organic Valley and Land O'Lakes
milks, has blamed its struggles on the "accelerated decline in the
conventional white milk category."
The company is saddled with debt and has been unable to fund all of its
workers' pensions. So on Tuesday, Dean Foods filed for Chapter 11
bankruptcy protection to keep the business operating, reorganize its debt
and help fund the pensions while it looks to sell the company.
Dean Foods said in a statement that it is working with the Dairy Farmers
of America cooperative on a potential deal, in which the cooperative would
buy almost all of the company.
As part of the bankruptcy process, the company secured $850 million in
financing from its existing lenders, including Rabobank (RSWLDD), to keep
the company running.
Once a staple of the American refrigerator, milk has slowly fallen out of
favor with consumers as they seek less-sugary or plant-based alternatives.
The global market for milk alternatives is expected to top $18 billion
this year, up 3.5% from 2018, according to Euromonitor. That's still a
fraction of the traditional milk market which will come in at just under
$120 billion globally this year.
Sales for cow's milk has been declining for the past four years. Sales for
the past 52 weeks, ending on October 26, was around $12 billion, according
to data Nielsen provided to CNN Business. That's a decline from $15
billion during a similar time period in 2015. All types of cow's milk,
such as 1%, 2%, skim and fat-free milk sales have all declined.
In contrast, and while still much smaller, sales of oat milk has jumped
636% to $53 million over the past year.
That's not the only problem Dean Foods has faced. Walmart (WMT), which was
one of Dean Food's biggest customers, dropped them last year after
building its own dairy plant.
--
No collusion - Special Counsel Robert Swan Mueller III, March 2019.
Donald J. Trump, 304 electoral votes to 227, defeated compulsive liar in
denial Hillary Rodham Clinton on December 19th, 2016. The clown car
parade of the democrat party ran out of gas and got run over by a Trump
truck.
Congratulations President Trump. Thank you for cleaning up the disaster
of the Obama presidency.
The Obama-led Committee on Foreign Investment in the United States (CFIUS)
approved Uranium One in fall 2010. With a little luck, we'll see
compulsive liar Hillary Clinton in jail before she dies.
Under Barack Obama's leadership, the United States of America became the
The World According To Garp.
Obama increased total debt from $10 trillion to $20 trillion in the eight
years he was in office, and sold out heterosexuals for Hollywood queer
liberal democrat donors.