Dean Foods decides against a sale after strategic review
Source Food Dive
With just about one month on the job, the pressure is on for Beringause to turn around Dean Foods' bottom line.
The dairy giant has struggled in recent years, facing
competition from milk alternatives and plummeting sales. In an attempt
to overcome these hurdles, the company has already cut costs, increased its borrowing base, replaced its CEO and turned to a strategic review in February. Since
Dean's board concluded the review without any action, it seems like
they are really betting this latest executive shift can change the
negative trajectory. But it will likely be a difficult feat, given all
of the efforts that Dean has already been making.
Although a newfound confidence in the top executive at the company is
the stated reason for why the board decided to continue operating
independently for now, it likely wasn't the only factor that led to this
decision. The reason for staying independent could also have to do with
its lack of interest from potential buyers. Reports that Montreal-based dairy company Saputo was interested in Dean were disputed. The Canadian CEO later said he wasn't interested.
Since a sale is out of the picture for now, Beringause will likely need
to produce results fast, even though he just assumed the role. Dean's
previous CEO Ralph Scozzafava had headed the company for only about two
years, and was pushed out as the company continued to struggle.
Dean, which owns TruMoo and DairyPure, has seen stocks decline almost
70% in the last year.