US retailer Meijer has moved into dairy production through the acquisition of family-owned Bareman's Dairy. 

The financial terms of the deal were not disclosed but Meijer said it plans to invest more than US$8m to expand production at the dairy in Holland in Michigan. 

"As Meijer continues to grow, it's crucial we invest in the operations that will help us keep our promise of higher standards and lower prices to our customers. Expanding into dairy operations will do just that," co-chairman and CEO Hank Meijer said today (29 March).

The site, to be named the Purple Cow Creamery after Meijer's ice cream shops, will produce white and chocolate milk for Meijer's Michigan stores. 

While it will be several months before the facility begins shipping milk products to Meijer stores, Meijer will assume ownership of the dairy plant operations on Sunday (1 April). 

In addition, Prairie Farms Dairy has acquired the rights to the Bareman's Dairy brand and all Bareman's distribution facilities, along with exclusive rights to distribute Bareman's brand products throughout the Great Lakes region.