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April 23, 2020

Bankrupt dairy giant Dean Foods sells Meadow Gold business to MGD Acquisition

Dean Foods, the US dairy giant which is being sold off following its bankruptcy, has named the buyer for the bulk of its Meadow Gold Hawaii business.

By Leonie Barrie

Dean Foods, the US dairy giant which is being sold off following its bankruptcy, has announced the bulk of its Meadow Gold Hawaii business is to be sold to local investment company MGD Acquisition as a going concern.

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What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
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Financial details have not been disclosed.

Last week, Dean Foods revealed it was to close its Honolulu operation in Hawaii after a previously-announced deal to sell the Meadow Gold Hawaii business to Industrial Realty Group was terminated.

Dean Foods said it had reached an agreement in principle with an unnamed party to sell its Hilo facility and related assets on the Big Island, Kauai and Maui as an ongoing business, alongside related distribution branches and the Meadow Gold Hawaii brand name and related intellectual property.

It has now revealed Michigan-based MGD Acquisition is the buyer.

The agreement is subject to final approval by the Bankruptcy Court.

Eric Beringause, president and CEO of Dean Foods, said: “We are pleased to have reached an agreement with MGD Acquisition that will allow our Meadow Gold Hawaii business to continue to operate and serve customers across Hawaii.”

At the beginning of this month, the US Bankruptcy Court for the Southern District of Texas approved the sale of a substantial portion of Dean Foods’ business operations, including the sale of the assets, rights, interests and properties relating to 44 of the company’s fluid and frozen facilities, to Dairy Farmers of America for US$433m.

The court also approved the sale of the assets, rights, interests and properties relating to eight additional facilities, two distribution branches and certain other assets to Prairie Farms Dairy for $75m in cash and the sale of Dean Foods’ facility in Miami, Florida to Mana Saves McArthur for $16.5m.

The court also gave the green light to Producers Dairy Foods’ purchase of Dean Foods’ Reno, Nevada facility for $3.7m and its purchase of the Berkeley Farms trademark and related intellectual property for $3 million, as well as Harmoni’s acquisition of the company’s Uncle Matt’s business for $7.25m.

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Free Report
img

What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.

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