Dean Foods reported an increase in net sales for Q1 2017 reaching $2bn, up from $1.88bn from the same period last year, but registered a 1.3% decline in total volume production for the quarter.
Dean Foods announced a minority investment and distribution deal with Good Karma Foods, adding resources to expansion plans of the latter, a small Colorado-based independent company that specializes in flaxseed beverages and yogurt.
Atlanta-based Hi-Tech Pharmaceuticals is taking over a former Dean Foods production facility in Belleville, Pennsylvania, and will make a multi-million investment to increase capacity and make improvements to the plant’s infrastructure.
A joint venture between Dean Foods Company and Organic Valley will bring the independent farmer cooperative’s dairy products to more US stores through Dean’s extensive refrigerated distribution network.
US milk production is still on the rise, according to a September inventory report by the National Agricultural Statistics Service, which indicated a 2.1% increase compared to 2015 reaching a total of 16.7bn lbs of milk.
Dairy manufacturers can look to growth in cottage cheese, partly by referring to it as the original high protein cultured milk product, according to food and drink consultancy Zenith International.
Dean Foods’ decrease in its private label businesses has caused a revenue decline in its second quarter, the company said during its conference call on Monday.
Dean Foods has reported its first quarter 2016 results, ending March 31, 2016, with the takeover of Friendly’s ice cream business proving to be the center of attention at the company’s analysts conference call.
