Dean Foods, Inc., the maker of brands such as Horizon Organic and Land O’Lakes, is getting out of the nutritional beverage business.
It will stop producing the beverages operated by its Specialty Foods Group segment on or about Nov. 7 and close a Michigan plant in the fourth quarter where the drinks are produced, the company said last week in a filing with the Securities and Exchange Commission.
The product line consists of canned aseptic beverages in the meal supplement, weight loss/gain (including low-carb) and sports categories. Significant declines in the nutritional beverage volumes during 2004 prompted the decision to exit the business. In the filing the company said it believed that the volumes could not be replaced. It expects related charges of $10.2 million.
Also last week Dean Foods lowered its 2004 forecast to between $2 and $2.05 per share from between $2.21 and $2.26, citing a number of factors including volatile milk prices.
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