Feb 18, 2020 - Economy & Business

Dairy Farmers of America to buy bankrupt Dean Foods

Illustration: Sarah Grillo/Axios

Dairy Farmers of America, the country’s largest milk co-op, said on Monday that it’s reached a deal to purchase a “substantial portion” of the bankrupt milk company Dean Foods.

Details: DFA will pay a base purchase price of $425 million to acquire 44 of Dean’s facilities and associated direct store delivery system plus other assets.

Why it matters: This merger is already under antitrust scrutiny by the Department of Justice, which has been investigating how the deal would affect pricing and competition given the two companies’ dominance in the industry.

The bottom line: “Dean’s bankruptcy followed a yearslong decline in sales of fluid milk, the Dallas company’s main business. Bottled water, fruit juices and plant-based milk alternatives have crowded out milk cartons in grocery store beverage cases, pressuring the milk business.” — Jacob Bunge, WSJ.

Go deeper: China is driving milk prices higher

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Grocery delivery gets a target market

Reproduced from CivicScience; Note: Not all responses shown; Chart: Axios Visuals

The ideal grocery delivery customer is young and rich, new data from CivicScience shows.

Why it matters: Companies like Amazon and Walmart are investing further in grocery delivery and the data show who their target demographic could be.

Why Amazon's bigger Go grocery stores matter

An Amazon Go store in Seattle. Photo: David Ryder/Getty Images

With the opening of its first large-format cashier-less grocery store in Seattle on Tuesday, Amazon is on its way to further expanding its physical footprint across U.S. cities.

The big picture: Amazon’s 2017 purchase of Whole Foods was never the end of its grocery ambitions — or its fight to win a bigger share of the whopping $700 billion per year American grocery industry. With its own network of stores, Amazon could attract shoppers looking for cheaper prices than Whole Foods and dramatically grow its brick-and-mortar reach.

SoftBank to cut its stake to get T-Mobile's Sprint deal done

Illustration: Rebecca Zisser/Axios

T-Mobile and Sprint announced a revised merger agreement that will see SoftBank getting a smaller share of the combined company, while most shareholders will receive the previously agreed upon exchange rate. The companies said they hope to get the deal as early as April 1.

Why it matters: The amended deal reflects the decline in Sprint's business, while leaving most shareholders' stake intact and removing another hurdle to the deal's closure.