Monday, May 10, 2010
More Dean Thoughts
(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.