Dean Foods (NYSE: DF) is an American food and beverage company with two operating divisions: Fresh Dairy Direct and WhiteWave-Morningstar.[2] The company maintains plants and distributors in the United States and the United Kingdom. Dean Foods products are sold throughout the USA.
Dean Foods Company, incorporated in 1994, is a food and beverage company. The Company operates through two segments: Fresh Dairy Direct and WhiteWave-Morningstar. Fresh Dairy Direct, formerly DSD Dairy, is a processor and distributor of milk and other dairy products in the United States, with products sold under more than 50 local and regional brands and a range of private labels. WhiteWave-Morningstar markets and sells a variety of branded dairy and dairy-related products, such as Silk soymilk and cultured soy products, Horizon Organic milk and other dairy products, The Organic Cow, International Delight coffee creamers, LAND O’LAKES creamers and fluid dairy products, and Rachel’s Organic dairy products. WhiteWave-Morningstar also offers branded soy-based beverages and food products in Europe, marketing its products under the Alpro and Provamel brands. In addition, WhiteWave-Morningstar markets and sells private label cultured and extended shelf life dairy products. In July 2009, the Company completed the acquisition of the Alpro division of Vandemoortele, N.V. (Alpro). Alpro offers branded soy-based beverage and food products in Europe.
Fresh Dairy Direct
Fresh Dairy Direct manufactures, markets and distributes a variety of branded and private label dairy case products, including milk, creamers, ice cream, juices and teas, to retailers, distributors, foodservice outlets, educational institutions and governmental entities across the United States. During the year ended December 31, 2009, Fresh Dairy Direct’s net sales accounted for 76% of the Company’s consolidated net sales. Fresh Dairy Direct sells the majority of its products under local and regional proprietary or licensed brands. Products not sold under these brands are sold as private label. Fresh Dairy Direct sells its products primarily on a local or regional basis through its local and regional sales forces. Fresh Dairy Direct’s largest customer is Wal-Mart, which includes its subsidiaries, such as Sam’s Club, accounting for approximately 21% of Fresh Dairy Direct’s net sales in 2009.
As of December 31, 2009, Fresh Dairy Direct’s local and regional proprietary and licensed brands included Alta Dena, Friendship, Oak Farms, Arctic Splash, Gandy’s, Over the Moon, Atlanta Dairies, Garelick Farms, Pet (licensed brand), Barbers, Hershey’s (licensed brand), Pog (licensed brand), Barbe’s, Hygeia, Price’s, Berkeley Farms, Jilbert, Purity, Broughton, Knudsen (licensed brand), Reiter, Borden (licensed brand), LAND O LAKES (licensed brand), Robinson, Brown Cow, Land-O-Sun & design, Saunders, Brown’s Dairy, Lehigh Valley Dairy Farms, Schenkel’s All Star, Bud’s Ice Cream, Liberty, Schepps, Chug, Louis Trauth, Shenandoah’s Pride, Country Charm, Maplehurst, Stroh’s, Country Churn, Mayfield, Swiss Dairy, Country Delite, McArthur, Swiss Premium, Country Fresh, Meadow Brook, Trumoo, Country Love, Meadow Gold, TG Lee, Creamland, Mile High Ice Cream, Tuscan, Dairy Fresh, Model Dairy, Turtle Tracks, Dean’s, Mountain High, Verifine, Dipzz, Nature’s Pride, Viva, Fieldcrest, Nurture, Foremost (licensed brand) and NUTTYBUDDY. As of December 31, 2009, Fresh Dairy Direct operated 82 manufacturing facilities in 33 states. Fresh Dairy Direct delivers the majority of its products directly to its customers’ locations in refrigerated trucks or trailers that it owns or leases. This form of delivery is called a direct store delivery (DSD) system.
WhiteWave-Morningstar
WhiteWave-Morningstar consists of three aggregated operations, including WhiteWave, Morningstar and Alpro, as well as a joint venture entered into between WhiteWave and Hero Group (Hero). The WhiteWave operation manufactures, develops, markets and sells a variety of branded soy, dairy and dairy-related products. The Morningstar operation is a manufacturer of private label cultured and extended shelf life dairy products, such as ice cream mix, sour and whipped cream, yogurt and cottage cheese. In addition, the Company, together with its Hero/WhiteWave joint venture, introduced Fruit2Day, a chilled fruit-based beverage. During 2009, WhiteWave-Morningstar’s net sales accounted for 24% of its consolidated net sales.
WhiteWave-Morningstar sells its products to a variety of customers, including grocery stores, club stores, natural foods stores, mass merchandisers, convenience stores, drug stores and foodservice outlets. WhiteWave-Morningstar’s largest customer Wal-Mart, including Sam’s Club, accounted for approximately 14% of WhiteWave-Morningstar’s net sales in 2009. WhiteWave-Morningstar operated 19 domestic and five international manufacturing facilities. The remaining products are manufactured by third-party manufacturers under processing agreements. The majority of WhiteWave-Morningstar’s products are delivered through warehouse delivery systems.
The Company competes with Nestle.
The following year, Dean invested heavily to update the brand image of its dairy line, redesigning its packaging in bright colors with eye-catching graphics. Seeking to strengthen the Dean brand identity in a commodity market, the company began advertising milk's rich calcium content on its cartons and to approach marketing in general with the mindset of a large beverage producer. In this vein, Mayfield Dairy Farms, a Dean division based in Tennessee, developed a highly successful plastic, single-serving milk bottle. A hit with consumers, the plastic bottles were convenient, portable, and saleable in vending machines. Industry consultant Jerry Dryer noted the potential of such packaging for expanding the portability and popularity of milk, observing: "A square carton doesn't fit in the cup holder of your minivan."
By 1996 Dean's rapid expansion into the vegetable business was taking a severe toll on earnings, as excess production, stagnant prices, and weak demand hurt vegetable processors throughout the country. Dean announced that it would undergo a wholesale restructuring, closing 13 plants--including seven vegetable plants--eliminating 840 jobs, and hiring a consultant to examine every other aspect of its business. Its recent acquisitions had made Dean the third-largest vegetable processor in the United States, with vegetables accounting for 20 percent of its revenues. Dean expected the restructuring to eliminate $50 million in costs annually. The restructuring also entailed a shift in focus, with Dean reemphasizing dairy and pickles at the expense of vegetables, particularly canned vegetables.
In January 1997 the company announced the selection of Phil Marineau, the former head of Quaker Oats' Gatorade unit, as president and COO. Marineau replaced Thomas L. Rose, who retired from those positions but maintained a position as vice-chairman of the board. Analysts applauded the selection of Marineau for his extensive experience in packaged foods marketing, an area in which Dean was not traditionally strong. Said analyst John McMillin of Prudential Securities, "As a Dean Foods stockholder, I am thrilled that Dean could find such a qualified person."
Dean soon announced the purchase of Meadows Distributing Company (a $70 million distributor of ice cream in the Chicago metropolitan area) and the $35 million Marie's line of salad dressings, dips, salsas, and fruit glazes. In addition, Dean entered into a joint venture with River Ranch, of Salinas, California, to produce a line of branded fresh vegetables under the Birds Eye name. Fresh produce in U.S. supermarkets was an $18 billion a year business; with the increasing popularity of branded fresh vegetable lines, Marineau speculated that the new venture could soon generate $100 million annually. At the same time, Dean announced that it was investing $10 million to promote its new line of Birds Eye frozen baby gourmet vegetables.
For the 1997 fiscal year, Dean generated earnings of $86.7 million, up from a loss of $49.7 million in 1996. Revenues rose seven percent to $3.02 billion.
Principal Subsidiaries: Bell Dairy Products, Inc.; Cream o'Weber Dairy, Inc.; Creamland Dairies, Inc.; Dean Pickle & Specialty Products Company; Dean Foods Vegetable Company; Dean Dairy Products Company; Dean Foods Company; Dean Foods Amboy; DFC Transportation Company; Fairmont Products; Liberty Dairy Company; Long Life Dairy Products; Mayfield Dairy, Inc.; McArthur Dairy, Inc.; Meadow Brook Dairy Company; Price's Creameries; Reiter Dairy, Inc.; Rod's Food Products; Ryan Milk Company, Inc.; T.G. Lee Foods, Inc.; Verifine Dairy Products Corporation.
OVERALL
Beta: 0.72
Market Cap (Mil.): $2,047.82
Shares Outstanding (Mil.): 183.17
Annual Dividend: --
Yield (%): --
FINANCIALS
DF.N Industry Sector
P/E (TTM): 23.77 24.02 20.41
EPS (TTM): -67.14 -- --
ROI: 1.21 2.12 7.89
ROE: 6.07 3.56 14.34
Statistics:
Public Company
Incorporated: 1925 as Dean Evaporated Milk Company
Sales: $3.02 billion (1996)
Employees: 12,100
Stock Exchanges: New York
SICs: 2026 Fluid Milk; 2024 Ice Cream & Frozen Desserts; 2033 Canned Fruits & Vegetables; 2035 Pickles, Sauces, & Salad Dressings
Name Age Since Current Position
Engles, Gregg 53 2002 Chairman of the Board, Chief Executive Officer
Mara, Shaun 46 2010 Chief Financial Officer, Executive Vice President
McPeak, Blaine 45 2009 President - WhiteWave Foods Company
Deryckere, Bernard 52 2009 Chief Executive Officer - Alpro
Yost, Kevin 45 2011 President - Morningstar
Kemps, Steven 46 2008 Executive Vice President, General Counsel, Corporate Secretary
Zanetich, Thomas 59 2011 Executive Vice President - Human Resources
Tanner, Gregg 54 2007 Executive Vice President, Chief Supply Chain Officer
Duffin-Maxwell, Kelly 46 2008 Executive Vice President - Research & Development
McKelvey, Gregory 37 2008 Executive Vice President, Chief Strategy and Transformation Officer
Sliva, Christopher 47 2010 Chief Commercial Officer
Hardin, Joseph 66 1998 Lead Independent Director
Nevares-La Costa, Hector 60 1994 Independent Director
Green, Stephen 60 1994 Independent Director
Muse, John 60 1997 Independent Director
Turner, Jim 65 1997 Independent Director
Davis, Thomas 62 2001 Independent Director
Hill, V. Janet 63 2001 Independent Director
Wright, Doreen 54 2009 Independent Director
Mailloux, J. Wayne 62 2009 Independent Director
Address:
3600 North River Road
Franklin Park, Illinois 60131
U.S.A.
Dean Foods Company, incorporated in 1994, is a food and beverage company. The Company operates through two segments: Fresh Dairy Direct and WhiteWave-Morningstar. Fresh Dairy Direct, formerly DSD Dairy, is a processor and distributor of milk and other dairy products in the United States, with products sold under more than 50 local and regional brands and a range of private labels. WhiteWave-Morningstar markets and sells a variety of branded dairy and dairy-related products, such as Silk soymilk and cultured soy products, Horizon Organic milk and other dairy products, The Organic Cow, International Delight coffee creamers, LAND O’LAKES creamers and fluid dairy products, and Rachel’s Organic dairy products. WhiteWave-Morningstar also offers branded soy-based beverages and food products in Europe, marketing its products under the Alpro and Provamel brands. In addition, WhiteWave-Morningstar markets and sells private label cultured and extended shelf life dairy products. In July 2009, the Company completed the acquisition of the Alpro division of Vandemoortele, N.V. (Alpro). Alpro offers branded soy-based beverage and food products in Europe.
Fresh Dairy Direct
Fresh Dairy Direct manufactures, markets and distributes a variety of branded and private label dairy case products, including milk, creamers, ice cream, juices and teas, to retailers, distributors, foodservice outlets, educational institutions and governmental entities across the United States. During the year ended December 31, 2009, Fresh Dairy Direct’s net sales accounted for 76% of the Company’s consolidated net sales. Fresh Dairy Direct sells the majority of its products under local and regional proprietary or licensed brands. Products not sold under these brands are sold as private label. Fresh Dairy Direct sells its products primarily on a local or regional basis through its local and regional sales forces. Fresh Dairy Direct’s largest customer is Wal-Mart, which includes its subsidiaries, such as Sam’s Club, accounting for approximately 21% of Fresh Dairy Direct’s net sales in 2009.
As of December 31, 2009, Fresh Dairy Direct’s local and regional proprietary and licensed brands included Alta Dena, Friendship, Oak Farms, Arctic Splash, Gandy’s, Over the Moon, Atlanta Dairies, Garelick Farms, Pet (licensed brand), Barbers, Hershey’s (licensed brand), Pog (licensed brand), Barbe’s, Hygeia, Price’s, Berkeley Farms, Jilbert, Purity, Broughton, Knudsen (licensed brand), Reiter, Borden (licensed brand), LAND O LAKES (licensed brand), Robinson, Brown Cow, Land-O-Sun & design, Saunders, Brown’s Dairy, Lehigh Valley Dairy Farms, Schenkel’s All Star, Bud’s Ice Cream, Liberty, Schepps, Chug, Louis Trauth, Shenandoah’s Pride, Country Charm, Maplehurst, Stroh’s, Country Churn, Mayfield, Swiss Dairy, Country Delite, McArthur, Swiss Premium, Country Fresh, Meadow Brook, Trumoo, Country Love, Meadow Gold, TG Lee, Creamland, Mile High Ice Cream, Tuscan, Dairy Fresh, Model Dairy, Turtle Tracks, Dean’s, Mountain High, Verifine, Dipzz, Nature’s Pride, Viva, Fieldcrest, Nurture, Foremost (licensed brand) and NUTTYBUDDY. As of December 31, 2009, Fresh Dairy Direct operated 82 manufacturing facilities in 33 states. Fresh Dairy Direct delivers the majority of its products directly to its customers’ locations in refrigerated trucks or trailers that it owns or leases. This form of delivery is called a direct store delivery (DSD) system.
WhiteWave-Morningstar
WhiteWave-Morningstar consists of three aggregated operations, including WhiteWave, Morningstar and Alpro, as well as a joint venture entered into between WhiteWave and Hero Group (Hero). The WhiteWave operation manufactures, develops, markets and sells a variety of branded soy, dairy and dairy-related products. The Morningstar operation is a manufacturer of private label cultured and extended shelf life dairy products, such as ice cream mix, sour and whipped cream, yogurt and cottage cheese. In addition, the Company, together with its Hero/WhiteWave joint venture, introduced Fruit2Day, a chilled fruit-based beverage. During 2009, WhiteWave-Morningstar’s net sales accounted for 24% of its consolidated net sales.
WhiteWave-Morningstar sells its products to a variety of customers, including grocery stores, club stores, natural foods stores, mass merchandisers, convenience stores, drug stores and foodservice outlets. WhiteWave-Morningstar’s largest customer Wal-Mart, including Sam’s Club, accounted for approximately 14% of WhiteWave-Morningstar’s net sales in 2009. WhiteWave-Morningstar operated 19 domestic and five international manufacturing facilities. The remaining products are manufactured by third-party manufacturers under processing agreements. The majority of WhiteWave-Morningstar’s products are delivered through warehouse delivery systems.
The Company competes with Nestle.
The following year, Dean invested heavily to update the brand image of its dairy line, redesigning its packaging in bright colors with eye-catching graphics. Seeking to strengthen the Dean brand identity in a commodity market, the company began advertising milk's rich calcium content on its cartons and to approach marketing in general with the mindset of a large beverage producer. In this vein, Mayfield Dairy Farms, a Dean division based in Tennessee, developed a highly successful plastic, single-serving milk bottle. A hit with consumers, the plastic bottles were convenient, portable, and saleable in vending machines. Industry consultant Jerry Dryer noted the potential of such packaging for expanding the portability and popularity of milk, observing: "A square carton doesn't fit in the cup holder of your minivan."
By 1996 Dean's rapid expansion into the vegetable business was taking a severe toll on earnings, as excess production, stagnant prices, and weak demand hurt vegetable processors throughout the country. Dean announced that it would undergo a wholesale restructuring, closing 13 plants--including seven vegetable plants--eliminating 840 jobs, and hiring a consultant to examine every other aspect of its business. Its recent acquisitions had made Dean the third-largest vegetable processor in the United States, with vegetables accounting for 20 percent of its revenues. Dean expected the restructuring to eliminate $50 million in costs annually. The restructuring also entailed a shift in focus, with Dean reemphasizing dairy and pickles at the expense of vegetables, particularly canned vegetables.
In January 1997 the company announced the selection of Phil Marineau, the former head of Quaker Oats' Gatorade unit, as president and COO. Marineau replaced Thomas L. Rose, who retired from those positions but maintained a position as vice-chairman of the board. Analysts applauded the selection of Marineau for his extensive experience in packaged foods marketing, an area in which Dean was not traditionally strong. Said analyst John McMillin of Prudential Securities, "As a Dean Foods stockholder, I am thrilled that Dean could find such a qualified person."
Dean soon announced the purchase of Meadows Distributing Company (a $70 million distributor of ice cream in the Chicago metropolitan area) and the $35 million Marie's line of salad dressings, dips, salsas, and fruit glazes. In addition, Dean entered into a joint venture with River Ranch, of Salinas, California, to produce a line of branded fresh vegetables under the Birds Eye name. Fresh produce in U.S. supermarkets was an $18 billion a year business; with the increasing popularity of branded fresh vegetable lines, Marineau speculated that the new venture could soon generate $100 million annually. At the same time, Dean announced that it was investing $10 million to promote its new line of Birds Eye frozen baby gourmet vegetables.
For the 1997 fiscal year, Dean generated earnings of $86.7 million, up from a loss of $49.7 million in 1996. Revenues rose seven percent to $3.02 billion.
Principal Subsidiaries: Bell Dairy Products, Inc.; Cream o'Weber Dairy, Inc.; Creamland Dairies, Inc.; Dean Pickle & Specialty Products Company; Dean Foods Vegetable Company; Dean Dairy Products Company; Dean Foods Company; Dean Foods Amboy; DFC Transportation Company; Fairmont Products; Liberty Dairy Company; Long Life Dairy Products; Mayfield Dairy, Inc.; McArthur Dairy, Inc.; Meadow Brook Dairy Company; Price's Creameries; Reiter Dairy, Inc.; Rod's Food Products; Ryan Milk Company, Inc.; T.G. Lee Foods, Inc.; Verifine Dairy Products Corporation.
OVERALL
Beta: 0.72
Market Cap (Mil.): $2,047.82
Shares Outstanding (Mil.): 183.17
Annual Dividend: --
Yield (%): --
FINANCIALS
DF.N Industry Sector
P/E (TTM): 23.77 24.02 20.41
EPS (TTM): -67.14 -- --
ROI: 1.21 2.12 7.89
ROE: 6.07 3.56 14.34
Statistics:
Public Company
Incorporated: 1925 as Dean Evaporated Milk Company
Sales: $3.02 billion (1996)
Employees: 12,100
Stock Exchanges: New York
SICs: 2026 Fluid Milk; 2024 Ice Cream & Frozen Desserts; 2033 Canned Fruits & Vegetables; 2035 Pickles, Sauces, & Salad Dressings
Name Age Since Current Position
Engles, Gregg 53 2002 Chairman of the Board, Chief Executive Officer
Mara, Shaun 46 2010 Chief Financial Officer, Executive Vice President
McPeak, Blaine 45 2009 President - WhiteWave Foods Company
Deryckere, Bernard 52 2009 Chief Executive Officer - Alpro
Yost, Kevin 45 2011 President - Morningstar
Kemps, Steven 46 2008 Executive Vice President, General Counsel, Corporate Secretary
Zanetich, Thomas 59 2011 Executive Vice President - Human Resources
Tanner, Gregg 54 2007 Executive Vice President, Chief Supply Chain Officer
Duffin-Maxwell, Kelly 46 2008 Executive Vice President - Research & Development
McKelvey, Gregory 37 2008 Executive Vice President, Chief Strategy and Transformation Officer
Sliva, Christopher 47 2010 Chief Commercial Officer
Hardin, Joseph 66 1998 Lead Independent Director
Nevares-La Costa, Hector 60 1994 Independent Director
Green, Stephen 60 1994 Independent Director
Muse, John 60 1997 Independent Director
Turner, Jim 65 1997 Independent Director
Davis, Thomas 62 2001 Independent Director
Hill, V. Janet 63 2001 Independent Director
Wright, Doreen 54 2009 Independent Director
Mailloux, J. Wayne 62 2009 Independent Director
Address:
3600 North River Road
Franklin Park, Illinois 60131
U.S.A.