Dean Foods Co. will consolidate its three businesses to better leverage its scale and grow its dairy and soy milk brands.
The Dean National Brand Group, Horizon Organic and White Wave businesses project combined 2004 revenues of $1.1 billion; revenues have been growing about 20% each year. White Wave President Steve Demos becomes president of the consolidated company, which will be headquartered in Bolder, CO; Demos reports to Dean CEO Gregg Engles. The consolidation will be complete by the end of 2005.
“Our current structure…including three sales forces and three separate supply chains, is not the right structure to tap the full potential of our brands,” said Engles in a statement. “Combining the three businesses [also] will enable us to increase our investment in marketing and innovation….Over time, we will simplify our supply chain with plants dedicated to the manufacture of our branded products.”
Dallas-based Dean bought White Wave in May 2002; it bought Horizon Organic in late 2003. Horizon President Chuck Marcy will stay on through January 2005 to help with the consolidation.
Dean’s second-quarter sales were up 26% to $2.8 billion, due mostly to higher milk prices; net income was down 10% for the quarter ended June 30.
Dean’s brands include Silk soymilk, White Wave soy and tofu, International Delight coffee creamers, Hershey’s milks, Land O’Lakes milk and cream products, Folgers Jakada milk and coffee beverages, Marie’s dips and dressings and Dean’s dips.
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