Dean Foods, a Texas-based company, plans to close a fluid milk plant in Buena Park, California, according to a report by Magdalene Landegent in Iowa’s Daily Sentinel. It is one of several the company plans to close between now and 2015.
Company CEO Gregg Tanner said during a first quarter earnings report in mid-May that Dean Foods would be focusing on efforts to cut costs for the next 18 months, which includes shutting down 10-15 percent of its fresh dairy plants and eliminate a “significant number” of distribution routes by the end of 2014, the newspaper reported.Dean Foods owns about 79 fresh dairy plants across the U.S.
“We have strong momentum and expect to announce additional plant closures over the balance of the year and into 2014,” Tanner said.
He said cuts are part of an effort help the company adapt to the recent loss of a portion milk of business with a "significant" retailer.
The company cut $23 million out of its selling, general and administrative costs and $17 million in distribution expenses since one year ago.
During the past 12 months, the company has reduced its net debt by more than $2.6 billion, said Tanner, as reported in the newspaper.
Dean Foods recently moved forward with a spinoff of its WhiteWave Foods portion, which makes products including Silk soymilk.
The company employs around 18,800 in its fresh dairy business nationwide. PD
—From report by Magdalene Landegent in the Daily Sentinel
