America’s Largest Milk Producer Files For Bankruptcy

You read that right! Dean Foods, a Dallas, Texas-based dairy giant, filed for Chapter 11 bankruptcy as sales of dairy milk across the US continued to decline.

There has been a steady rise in the adoption of plant-based and “flexitarian” diets, and consumers are simply not buying milk and dairy products the way they used to.

Dean Foods said that it has not been able to withstand the effects of dairy’s decline as consumers choose alternatives. “Despite our best efforts to make our business more agile and cost-efficient, we continue to be impacted by a challenging operating environment marked by declines in consumer milk consumption,” said Eric Beringause, CEO, Dean Foods.

Dean Foods was the supplier to many top dairy brands, including Dairy Pure, TruMoo, Land O’Lakes and Oak Farms.

The dairy industry in the United States has been facing some tough times in the last few years, as sales continue to dip. According to the Dairy Farmers of America, sales in 2018 dropped by $1.1 billion – totalling $13.6 billion vs $14.7 billion in 2017.

On the other hand, oat milk and non-dairy milk blend sales for the period between June 2017 and 2018 rose at the rates of 23% and 52% respectively, indicating a clear shift in consumer preferences.

India is also seeing a rise in the number of non-dairy milks and milk products available in the market, with homegrown brands like Goodmylk (plant milk) and LiveYum (cheese) shipping pan-India. (Here’s our guide to non-dairy milks in India).

We have always believed that the future is vegan – and this just proves how quickly it’s shifting from a fringe movement to a mainstream way of life! What do you think?

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