Please ensure Javascript is enabled for purposes of website accessibility
Taste for Milk Sours, Pushing Top Brand into Bankruptcy
gvw_ap_news
By Associated Press
Published 6 years ago on
November 12, 2019

Share

Dean Foods, America’s biggest milk processor, filed for bankruptcy Tuesday amid a decades-long drop-off in U.S. milk consumption blamed on changing trends and a growing variety of alternatives.
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
“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 the U.S. has tumbled more than 40%. Americans consumed around 24 gallons per year in 1996, according to government data. That dropped to 17 gallons in 2018.
An increasing variety of beverages, including teas and sodas, has hurt milk consumption. So have protein bars and other on-the-go breakfasts, which take the place of a morning bowl of cereal.
More recently, health and animal-welfare concerns have also contributed, as more shoppers seek out non-dairy alternatives like almond milk. Oat milk, for example, saw U.S. sales rise 636% to more than $52 million over the past year, according to Nielsen data.
Photo of a woman shopping for milk
FILE – In this Dec. 4, 2013, file photo Jessica Walton, of Guthrie, Okla., reaches for a container of milk at a grocery store in Edmond, Okla. On Tuesday, Nov. 12, 2019, Dean Foods, the nation’s largest milk processor, filed for Chapter 11 bankruptcy protection and said it may sell the company off to the Dairy Farmers of America. (AP Photo/Sue Ogrocki, File)

Dean Employs 16,000 People and Operates 60 Processing Facilities

Sales of cow’s milk have dropped an average of 6% per year over the last four years, Nielsen said.
That has hit dairy farms and milk sellers hard, leading some smaller family farmers to quit the business.
It also had an outsize effect on Dean Foods, which derived 67% of its sales from fluid milk last year, according to its annual report. Fifteen percent came from ice cream and just 4% came from fruit juice, iced tea, water and flax-based beverages.
Dean employs 16,000 people and operates 60 processing facilities across the country. On any given day, it is running 8,000 refrigerated delivery trucks on U.S. roads.
The company supplies milk for its own brands, like Dairy Pure, Meadow Gold and TruMoo, as well as store brands. One big blow came last year, when Walmart opened its own milk processing plant in Indiana.
Dean has lost money in eight of its last 10 quarters and posted declining sales in seven of the last eight.
The company said it will continue operating normally while it puts its finances in order under Chapter 11 bankruptcy. It has lined up about $850 million in financing from lenders.

DON'T MISS

What Are Fresno Real Estate Experts Predicting for 2025 and Beyond?

DON'T MISS

First California EV Mandates Hit Automakers This Year. Most Are Not Even Close

DON'T MISS

Fresno State’s Ag College Is Growing. A New Corporate Sponsor Will Help Them

DON'T MISS

Trump Compares Russia and Ukraine to Children Fighting

DON'T MISS

Trump Administration Imposes Sanctions on Four ICC Judges in Unprecedented Move

DON'T MISS

SpaceX Will Decommission Dragon Spacecraft, Musk Says as Feud With Trump Escalates

DON'T MISS

Erika Sandoval Gets Life Sentence in Notorious Tulare County Murder

DON'T MISS

Israeli Military Strikes Beirut’s Southern Suburbs

DON'T MISS

We Are Being Governed by the Trump Organization Inc.

DON'T MISS

Wondrous Webster Has the Makings of a Wonderful Family Member

DON'T MISS

Trump Threatens Musk’s Government Deals as Feud Explodes Over Tax-Cut Bill

DON'T MISS

Fresno Police Want Your Tips to Solve Taylor Washington Homicide

UP NEXT

Trump Amplifies Outlandish Robot Biden Conspiracy Theory

UP NEXT

American Doctors Are Moving to Canada To Escape the Trump Administration

UP NEXT

Loretta Swit, Emmy-winner Who Played Houlihan on Pioneering TV Series ‘M.A.S.H.,’ Has Died at 87

UP NEXT

1 in 4 US Children Have Parents With Substance Use Disorder, Study Finds

UP NEXT

Dozens Sickened in Expanding Salmonella Outbreak Linked to Recalled Cucumbers

UP NEXT

Speaker Johnson Raises Campaign Money in Fresno

UP NEXT

Business Insider Cuts 21% of Workforce, Memo Shows

UP NEXT

Harvard Agrees to Relinquish Early Photos of Slaves, Ending a Long Legal Battle

UP NEXT

Silence on E. Coli Outbreak Highlights How Trump Team’s Changes Undermine Food Safety

UP NEXT

Trump Pardons Tax Cheat After Mother Attends $1 Million Dinner

SpaceX Will Decommission Dragon Spacecraft, Musk Says as Feud With Trump Escalates

4 hours ago

Erika Sandoval Gets Life Sentence in Notorious Tulare County Murder

4 hours ago

Israeli Military Strikes Beirut’s Southern Suburbs

4 hours ago

We Are Being Governed by the Trump Organization Inc.

5 hours ago

Wondrous Webster Has the Makings of a Wonderful Family Member

5 hours ago

Trump Threatens Musk’s Government Deals as Feud Explodes Over Tax-Cut Bill

5 hours ago

Fresno Police Want Your Tips to Solve Taylor Washington Homicide

6 hours ago

Derek Carr Explains Mysterious Retirement. He Didn’t Want to ‘Just Take the Saints’ Money’

7 hours ago

What Do Valley Leaders Say About Trump’s Threat to Yank High-Speed Rail Funding?

8 hours ago

Were Cuts in Rooftop Solar Payments Legal? CA Supreme Court Hears Arguments

8 hours ago

Fresno State’s Ag College Is Growing. A New Corporate Sponsor Will Help Them

The nonprofit supporting Fresno State’s ag specialty college unveiled its first corporate sponsor Thursday supporting students and tea...

2 hours ago

2 hours ago

Fresno State’s Ag College Is Growing. A New Corporate Sponsor Will Help Them

3 hours ago

Trump Compares Russia and Ukraine to Children Fighting

3 hours ago

Trump Administration Imposes Sanctions on Four ICC Judges in Unprecedented Move

4 hours ago

SpaceX Will Decommission Dragon Spacecraft, Musk Says as Feud With Trump Escalates

4 hours ago

Erika Sandoval Gets Life Sentence in Notorious Tulare County Murder

4 hours ago

Israeli Military Strikes Beirut’s Southern Suburbs

5 hours ago

We Are Being Governed by the Trump Organization Inc.

Webster, GV Wire's Adoptable Pet of the Week, June 5, 2025
5 hours ago

Wondrous Webster Has the Makings of a Wonderful Family Member

Help continue the work that gets you the news that matters most.

Search

Send this to a friend