Cattlenetwork.com reports that Dean Foods, the largest United States dairy processor has reported a second quarter drop in dairy sales thanks to the ongoing recession; however, much of the 30% drop is directly related to competition from private labels. According to the report, Dean Foods sells private label products through its WhiteWave-Alpro unit, which accounts for only about 15 percent of overall sales. Fresh Dairy Direct-Morningstar, which includes branded milk, accounts for about 85 percent of sales.
During the 52 weeks ended July 11, private label sales of skim or low-fat milk at U.S. supermarkets, convenience stores and other mass-market retailers totaled $4.47 billion, or 56 percent of total sales, according to Symphony/IRI Group, a Chicago-based market research firm. The figure does not include Wal-Mart Stores.
What do you think will be the next move for Dean Foods? Will we see them partnering with other retailers or expanding their private label portfolio?
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