America's largest milk producer has filed for bankruptcy protection as American consumers are turning away from cow's milk in favor of non-dairy alternatives. Dean Foods sells products under many well-known brands, including Land O'Lakes, Dairy Pure, TruMoo, Lehigh Valley Dairy Farms, and Tuscan Dairy Farms.
Over the past four years, the sales for cow's milk has declined around $3 billion. Meanwhile, non-dairy milk blends saw a 51% increase in sales in 2018, though they only represent a tiny fraction of the overall milk market.
Dean Foods saw its sales in the first half of 2019 drop by 7%, resulting in a 14% decrease in profits. The rough first half caused the company's stock to lose 80% of its value. In addition to the decline in milk sales, Dean Foods also suffered a financial hit when Walmart ended their contract and began processing their own milk in 2017.
Dean Foods plans to operate normally during the proceedings as they work to sell off the business. The Dallas-based company employs roughly 15,000 people across the United States.
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