Dean Foods, the largest dairy producer in the United States, filed for bankruptcy Tuesday after years of declining cow milk consumption.
The 94-year-old company, located at 2711 N. Haskell Ave. in East Dallas, is in talks with the cooperative Dairy Farmers of America on a potential sale, the Dallas Morning News reported.
Dean Foods secured $850 million in financing from existing lenders to keep the company running, the newspaper reported. It is known for producing recognizable milk brands, such as Dairy Pure, as well as ice cream, juices and bottled water.
“Despite our best efforts to make our business more agile and cost-efficient, we continue to be impacted by a challenging operating environment marked by continuing declines in consumer milk consumption,” Dean Foods President and CEO Eric Beringause said in a statement. “Importantly, we are continuing to provide customers with an uninterrupted supply of high-quality dairy products, as well as supporting our dairy suppliers and other partners.”
CNN reported that Dean Foods’ sales fell 7 percent and profit fell 14 percent earlier this year as consumers opted for plant-based alternatives. It also encountered difficulty when Walmart cut ties with the producer to open its own dairy plants.
Dean Foods employs about 15,000 people across the country at 58 plants, including five in Texas.
Correction: A previous version of this article said Dean Foods produces Organic Valley milk. That is incorrect. Dean Foods processes dairy products for Organic Valley and does not own the cooperative. Organic Valley is not going bankrupt nor going out of business.
