America's largest milk producer files for bankruptcy

Dean Foods, America's largest milk producer, is filing for bankruptcy.The 94-year-old company has struggled in recent years because Americans are drin...

Posted: Nov 12, 2019 1:20 PM

Dean Foods, America's largest milk producer, is filing for bankruptcy.

The 94-year-old company has struggled in recent years because Americans are drinking less cows milk. 2019 has been particularly brutal: the company's sales tumbled 7% in the first half of the year, and profit fell 14%. Dean Foods stock has lost 80% this year

The company, which produces some of the country's most recognizable milk and dairy products, including Dairy Pure, Organic Valley and Land O'Lakes milks, has blamed its struggles on the "accelerated decline in the conventional white milk category."

The company is saddled with debt and has been unable to fund all of its workers' pensions. So on Tuesday, Dean Foods filed for Chapter 11 bankruptcy protection to keep the business operating, reorganize its debt and help fund the pensions while it looks to sell the company.

Dean Foods said in a statement that it is working with the Dairy Farmers of America cooperative on a potential deal, in which the cooperative would buy almost all of the company.

As part of the bankruptcy process, the company secured $850 million in financing from its existing lenders, including Rabobank, to keep the company running.

Once a staple of the American refrigerator, milk has slowly fallen out of favor with consumers as they seek less-sugary or plant-based alternatives.

The global market for milk alternatives is expected to top $18 billion this year, up 3.5% from 2018, according to Euromonitor. That's still a fraction of the traditional milk market which will come in at just under $120 billion globally this year.

Sales for cow's milk has been declining for the past four years. Sales for the past 52 weeks, ending on October 26, was around $12 billion, according to data Nielsen provided to CNN Business. That's a decline from $15 billion during a similar time period in 2015. All types of cow's milk, such as 1%, 2%, skim and fat-free milk sales have all declined.

In contrast, and while still much smaller, sales of oat milk has jumped 636% to $53 million over the past year.

That's not the only problem Dean Foods has faced. Walmart, which was one of Dean Food's biggest customers, dropped them last year after building its own dairy plant.

Indiana Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 74328

Reported Deaths: 3041
CountyConfirmedDeaths
Marion15860725
Lake7570275
Elkhart484384
Allen3902163
St. Joseph350081
Hamilton2763104
Vanderburgh196313
Hendricks1887108
Cass17959
Johnson1757118
Porter131639
Clark123347
Tippecanoe121111
Madison97965
LaPorte91130
Howard89065
Kosciusko85212
Bartholomew79347
Marshall78422
Floyd77946
Monroe75630
Delaware73052
Dubois69612
Boone67846
Noble67829
Hancock66038
Vigo65110
Jackson5865
Warrick58130
LaGrange55910
Shelby55327
Grant52630
Dearborn50828
Morgan47634
Clinton4343
Henry38320
Wayne37710
White36910
Montgomery35421
Lawrence34627
Harrison33823
Decatur33732
Putnam2888
Miami2742
Daviess27320
Scott26810
Greene25034
Jasper2432
Franklin24214
DeKalb2324
Gibson2254
Jennings22512
Steuben2103
Ripley2087
Carroll1912
Fayette1897
Perry18612
Starke1787
Orange17124
Posey1710
Wabash1693
Fulton1682
Wells1682
Jefferson1632
Knox1540
Whitley1526
Washington1401
Tipton13810
Spencer1363
Sullivan1261
Huntington1223
Randolph1224
Clay1215
Newton11810
Adams1012
Jay910
Owen901
Pulaski831
Rush804
Fountain742
Brown731
Ohio655
Blackford642
Benton610
Pike530
Switzerland520
Vermillion520
Parke511
Crawford450
Martin450
Union410
Warren221
Unassigned0206

Ohio Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 100848

Reported Deaths: 3669
CountyConfirmedDeaths
Franklin18317524
Cuyahoga13514499
Hamilton9643255
Lucas5348323
Montgomery436294
Summit3555222
Butler292963
Marion292545
Mahoning2554255
Pickaway238742
Stark1827139
Warren178939
Lorain177078
Columbiana165860
Trumbull1524106
Fairfield138732
Delaware130119
Licking128149
Clark114614
Lake111438
Wood104358
Clermont93311
Medina92335
Miami83938
Tuscarawas78214
Portage75861
Allen74044
Greene69012
Belmont62126
Mercer61213
Richland60412
Erie57527
Ashtabula56946
Geauga55644
Wayne53958
Ross4844
Huron3965
Darke39529
Ottawa38626
Hancock3783
Sandusky37716
Madison37410
Athens3571
Holmes3286
Lawrence2830
Auglaize2546
Union2511
Muskingum2361
Jefferson2292
Scioto2261
Seneca2143
Knox2057
Putnam20517
Preble2032
Washington20322
Shelby1944
Coshocton1936
Champaign1762
Crawford1745
Morrow1702
Hardin16512
Clinton1646
Highland1581
Logan1552
Fulton1481
Wyandot1468
Ashland1443
Defiance1444
Williams1353
Perry1303
Brown1292
Hocking1189
Guernsey1177
Henry1172
Fayette1130
Carroll1115
Monroe9318
Pike760
Jackson740
Van Wert711
Paulding690
Gallia651
Adams612
Meigs400
Vinton312
Harrison261
Morgan260
Noble160
Unassigned00
Fort Wayne
Clear
82° wxIcon
Hi: 86° Lo: 67°
Feels Like: 86°
Angola
Clear
84° wxIcon
Hi: 86° Lo: 67°
Feels Like: 90°
Huntington
Broken Clouds
82° wxIcon
Hi: 86° Lo: 67°
Feels Like: 87°
Decatur
Clear
81° wxIcon
Hi: 85° Lo: 67°
Feels Like: 85°
Van Wert
Clear
81° wxIcon
Hi: 85° Lo: 67°
Feels Like: 85°
Storms return for Monday
WFFT Radar
WFFT Temperatures
WFFT National

Community Events