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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Lazarus who wrote (60152)	11/30/2017 8:50:04 AM
From: E_K_S	Read Replies (2) \| Respond to of 78464

RE: Dean Foods Company (DF) When I first started looking at the company, I thought it was related to the Jimmy Dean sausage too but it's not. Dean Foods is all about milk & ice cream . . Dean Foods Company, a food and beverage company, processes and distributes milk, and other dairy and dairy case products in the United States. The company manufactures, markets, and distributes various branded and private label dairy case products, such as fluid milk, ice creams, cultured dairy products, creamers, ice cream mixes, and other dairy products; and juices, teas, bottled water, and other products. It sell its products under approximately 50 national, regional, and local proprietary or licensed brands, and private labels, including DairyPure, TruMoo, Alta Dena, Berkeley Farms, Country Fresh, Dean?s, Friendly's, Garelick Farms, LAND O LAKES, Lehigh Valley Dairy Farms, Mayfield, McArthur, Meadow Gold, Oak Farms, PET, T.G. Lee, Tuscan, and others. The company sells its products to retailers, distributors, foodservice outlets, educational institutions, and governmental entities through its sales forces. Dean Foods Company was founded in 1925 and is headquartered in Dallas, Texas. The problem is they have no pricing power in their milk business and the only real growth now is w/ ice cream. They also sell a lot of butter and now push their brands that include 'organic' product lines. The company is investing in new state-of-the-art processing equipment that s/d help reduce costs. They may/could expand into sterilized vacuum-packed milk working w/ Tetra Pak. They are trying different things but it's all about supply/demand and currently there is too much supply. I do think that DF may/could be a possible acquisition candidate if a Amazon and/or Walmart want to vertically integrate farm to shelf milk/ice cream products into their stores. EPS will have little to no growth at current prices unless they can expand ice cream sales and perhaps chocolate milk sales. EKS