November 13, 2019
Dallas-headquartered Dean Foods filed for Chapter 11 bankruptcy, citing declining U.S. milk consumption and increasing competition. The company secured financing to continue operations, while it discusses a potential sale to Dairy Farmers of America Inc.
Situated at 2711 N. Haskell Ave., Dean Foods in particular, and the dairy industry in general, have been dealing with consumers’ shift away from cow’s milk, as they moved toward bottled water and milk alternatives made from soy or oats. Additionally, grocery chains have, in some cases, built their own milk plants, reducing their alliance on Dean products.
Dean operates about 60 dairy processing plants in 29 states. While the company has been cutting its head count and closing underperforming plants to cut costs, the efforts haven’t kept up with declining sales.
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