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About Dean Foods Company

Dean Foods is one of the nation's largest milk bottler and purveyor of dairy products. The company markets fluid milk, ice cream, and cultured dairy products as well as beverages (juices, teas, and bottled water). It operates under more than 50 local, regional, and private label brands, including DairyPure, Mayfield, Pet, Country Fresh, Meadow Gold, and TruMoo, a leading national flavored milk brand. Dean Foods owns and operates a number of smaller regional dairy companies, including Friendly's, Berkeley Farms, and Garelick Farms. The company distributes dairy products across the US from regional manufacturing facilities. In late 2019, Dean Foods filed for Chapter 11 bankruptcy with the intention of selling itself.

Bankruptcy

In late 2019, the "U.S. Bankruptcy Court for the Southern District of Texas has entered a final order granting the Company authority to access the full amount of its $850 million in debtor-in-possession ("DIP") financing. The Company had previously received interim approval from the Court to access up to $475 million of the DIP financing. The Court also granted all other relief sought, including providing final approvals for certain other of the Company's "First Day Motions" intended to support the business." Deans Foods and substantially all of the company's subsidiaries initiated Chapter 11 reorganization proceedings in the Southern District of Texas.

Operations

About 65% of Dean Foods' revenue comes from its fluid milk while ice cream products account for nearly 15%. The rest of the company's sales come from fresh cream, extended shelf-life and other dairy products, cultured products and other beverages, each accounting for around 5% or less of sales; excess raw materials and other bulk commodities account for nearly 10% of sales). The company's heavy reliance on fluid milk puts it at the mercy of milk prices, consumer demand, and competition. Changes in any of those forces could affect the company's operations.

Company' branded and private label brands each account for about half of product sales. Excess raw materials and other bulk commodities both account for around 5% of sales. Due to the perishable nature of the company's products, the company delivers the majority of its products directly to its customers' locations in refrigerated trucks or trailers that the company owns or leases.

Geographic Reach

Dean Foods, based in Dallas, Texas, has a wide reach around the US, operating more than 55 production facilities throughout nearly 30 states, with distribution capabilities across all 50 states.

 

Sales and Marketing

Dean Foods markets its products through advertising and other promotions, including media, agency, coupons, trade shows and other promotional activities.

Dean Foods' customers include food retailers, distributors, foodservice outlets, educational institutions and governmental entities throughout the US. Walmart and its subsidiaries, including Sam's Club, is the company's largest customer, accounting for around 15% of revenue.

The company's products are sold primarily on a local or regional basis through local and regional sales forces, although some national customer relationships are coordinated by a centralized corporate sales department.

Dean Foods' advertising expense totaled $19.3 million in 2019, $41.6 million in 2018 and $39.1 million in 2017.

Financial Performance

Dean Foods' revenue growth performance have been inconsistent the past five years. Net income for the Company incurred losses for three years for that period.

In 2019, sales slipped by 5% to $7.3 billion primarily due to fluid milk volume declines from year-ago levels, partly offset by increased pricing, as a result of increases in dairy commodity costs from year-ago levels and pricing actions taken during the year ended December 31, 2019 to offset inflation.

Dean Foods lost $499.9 million in 2019, higher compared to losses incurred in 2018, the result of lower revenue and higher costs (including non-cash charges on impaired assets).

The company's coffers held $80 million in cash at the end of 2019 compared to $24.2 million the year before. In 2019, operations used $47.3 million, investing activities also used $83.4 million, and financing activities generated $186.6 million.

Strategy

Dean Foods has evolved over the past 20 years through periods of rapid acquisition, consolidation, integration and the separation of our operations including the spin-off of The WhiteWave Foods Company ("WhiteWave") and sale of Morningstar Foods ("Morningstar") in 2013. Today, it is a leading food and beverage company and the largest processor and direct-to-store distributor of fresh fluid milk and other dairy and dairy case products in the United States.

The Company vision is to be the most admired and trusted provider of wholesome, great-tasting dairy products at every occasion. Its strategy is to invest and grow its portfolio of brands while strengthening its operations and capabilities to achieve a more profitable core business. its strategy is anchored by its commitments to safety, quality and service, and delivering sustainable profit growth and total shareholder return.

Within its business strategies, corporate responsibility remains an integral part of its efforts. As it work to strengthen its business, the Company is committed to do it in a way that is right for its employees, shareholders, consumers, customers, suppliers and the environment. It intends to realize savings by reducing waste and duplication while continuing to support programs that improve its local communities. Dean Foods believe that its customers, consumers and suppliers value its efforts to operate in an ethical, environmentally sustainable, and socially responsible manner.

Dean Foods Company

2711 N Haskell Ave STE 340
Dallas, TX 75204-2911
Phone: 1 (214) 303-3400

Firm Stats

Employer Type: Publicly Owned
CEO: Ralph P. Scozzafava
Chairman: Jim L. Turner
Interim CFO: Scott K. Vopni
Employees (This Location): 432
Employees (All Locations): 14,500

Major Office Locations

Dallas, TX

Other Locations

Birmingham, AL
Madison, AL
Rainsville, AL
Tulare, CA
Broomfield, CO
Colorado Springs, CO
Cortez, CO
Denver, CO
Englewood, CO
Grand Junction, CO
Greeley, CO
East Hartford, CT
Harrington, DE
Auburndale, FL
Brooksville, FL
Deland, FL
Fort Myers, FL
Miami, FL
Ocala, FL
Orlando, FL
Tampa, FL
West Palm Beach, FL
Braselton, GA
Carrollton, GA
Macon, GA
Marietta, GA
Rome, GA
Waycross, GA
Hilo, HI
Honolulu, HI
Kahului, HI
Le Mars, IA
Boise, ID
Pocatello, ID
Twin Falls, ID
Batavia, IL
Decatur, IL
Franklin Park, IL
Harvard, IL
Huntley, IL
Melrose Park, IL
Rockford, IL
Decatur, IN
Huntington, IN
Rochester, IN
Wichita, KS
London, KY
Louisville, KY
Mayfield, KY
Alexandria, LA
Hammond, LA
New Orleans, LA
Grand Rapids, MI
Livonia, MI
Marquette, MI
Saint Paul, MN
Thief River Falls, MN
Billings, MT
Great Falls, MT
Kalispell, MT
Arden, NC
Charlotte, NC
Goldsboro, NC
High Point, NC
Jacksonville, NC
Lenoir, NC
Lumberton, NC
Winston Salem, NC
Bismarck, ND
Epping, ND
Lincoln, NE
Omaha, NE
Edison, NJ
Albuquerque, NM
Santa Fe, NM
Las Vegas, NV
East Syracuse, NY
Findlay, OH
South Point, OH
West Chester, OH
Tulsa, OK
La Grande, OR
Allentown, PA
Erie, PA
Indiana, PA
Lansdale, PA
Lebanon, PA
Sharpsville, PA
Charleston, SC
Columbia, SC
Greenville, SC
Spartanburg, SC
Sioux Falls, SD
Chattanooga, TN
Crossville, TN
Kingsport, TN
Knoxville, TN
Morristown, TN
Nashville, TN
Dallas, TX
El Paso, TX
Fort Worth, TX
Houston, TX
Laredo, TX
Longview, TX
Lubbock, TX
Mcallen, TX
Mckinney, TX
Paris, TX
San Angelo, TX
San Antonio, TX
Tyler, TX
Waco, TX
Salt Lake City, UT
St George, UT
Vernal, UT
Bluefield, VA
Chester, VA
Portsmouth, VA
Warsaw, VA
Sheboygan, WI
Clarksburg, WV
Cheyenne, WY