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.
Read the rest of the report here.
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?
Make sure you're ready for the continued success of private labels and brands. Join us at The Private Brand Movement, this September 27-29 at Hotel Sax in Chicago. Learn more by visiting our website and downloading the brochure.