(click on image to enlarge)
On the S & P 500 Index only two stock failed to gain today. Moody's is about to receive a letter (kind of worse than going to the principal's office), from the SEC and Dean Foods, Inc.
Dean is blaming pressure from the retailers. But, Dean also states they gained sales while other processors lost sales. Hard to connect those two facts.
Actually, beginning from the beginning, with what was then known a Suiza Fluid Group, deals were made. Suiza, along with their partner, DFA paid $50 to Stop & Shop supermarket to close its fluid processing plant. Part of the deal was to provide Stop & Shop with cheap milk. That deal continues as can be seen but the above table. Stop and Shop pays $0.08 a gallon less for the milk from the present Dean Foods ( store brand and Garelick).
Dean also got some pretty sweet deals from DFA, some of which ended when Dean in the legacy Dean plants stopped sourcing milk from DFA.
John,
ReplyDeleteThere certainly is plenty of doom and gloom to talk about in the NY dairy industry, but I just thought I would let you know about www.getnymilk.com. We have been working on this project for 7 years, and we finally got our organic milk bottled last April. The cheese started last May. Ice cream will be out this summer, along with the pastured eggs. We'll be rolling out the yogurt in September.
Things are looking up, albeit in a very small way.
Maybe their CEO will give back some of that 66 million he made in 2008. Ha!
ReplyDeleteOops!! They forgot they are compareing to the RECORD high first quarter last year when bottom fell out of milk and they continued selling extremely high retail-right off our backs and they didn't haul first load of poop!! Poor guys!!
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