Largest milk producer in U.S. files for bankruptcy
A milk truck pulls away from the Garelick Farms manufacturing plant in Lynn, Massachusetts. Photo: Jessica Rinaldi/The Boston Globe via Getty Images
America's largest milk producer, Dean Foods, is set to file for bankruptcy, CNN reports.
The big picture: The company has struggled to stay alive as U.S. demand for cow milk has dropped, in part due to a growing preference for non-dairy substitutes such as almond or soy milk. The company's stock fell 80% this year, having lost 7% in sales during the first half of 2019. Profits also plummeted by 14%.
- The company produces Land O'Lakes milks, Dairy Pure and Organic Valley products.
- Dean Foods is filing for a Chapter 11 bankruptcy to help reorganize its debts, which include workers' pensions.
- The international market for milk alternatives is expected to surpass $18 billion this year, CNN notes.
What to watch: According to a company statement, Dean Foods is looking to sell and is in talks with the Dairy Farmers of America for a potential deal.