Noel Hendrickson | Getty PicturesThe milk business is below stress. The newest signal of upheaval: Dean Foods, the nation's largest milk maker, fil
Noel Hendrickson | Getty Pictures
The milk business is below stress.
The newest signal of upheaval: Dean Foods, the nation’s largest milk maker, filed for Chapter 11 bankruptcy Tuesday. The Dallas-based firm is engaged in discussions with the Dairy Farmers of America, the largest dairy co-operative, to promote all or a part of its enterprise.
That deal will must be reviewed by regulators and the chapter court docket. The Dairy Farmers are hoping to guarantee that the group’s 14,500 members have a marketplace for the milk they provide.
But when they clear antitrust hurdles, and efficiently purchase Dean Meals out of chapter, they may nonetheless must cope with the large shifts which can be occuring in demand.
Listed below are 5 charts that present why the milk processor filed for chapter:
Altering shopper tastes
U.S. milk consumption has been falling for many years. In 1984, milk consumption represented a 15% share of all consuming events, in response to the NPD Group. By 2019, milk represents solely a 9% share.
Gross sales of cereal, a standard mealtime companion for milk, have additionally fallen in recent times as shoppers shun sugar and embrace greater protein breakfast choices.
Bottled water, which has exploded in recognition because the flip of the century, has been stealing prospects from milk. Bottled water appeals to shoppers who’re on the go and well being acutely aware, though…