Article Date 10/09/2019

Image from : Food Dive

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.

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