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November 16, 2016

Dean Foods, CROPP in JV to grow Organic Valley milk sales

Dean Foods and CROPP have entered into a joint venture to expand distribution of the Organic Valley brand, which is owned by the the US farmer cooperative. 

Dean Foods and CROPP have entered into a joint venture to expand distribution of the Organic Valley brand, which is owned by the the US farmer cooperative.

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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.
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The 50-50 joint venture will serve as a “strategic growth platform” that will see Dean Foods provide processing and distribution services for CROPP’s organic milk, which will be sold under the cooperative’s existing Organic Valley brand. 

The companies touted Dean Foods “extensive experience” in channels such as large format, dollar store and c-stores and Organic Valley’s presence in the natural channel, emerging markets and speciality distributors.

“Adding Organic Valley to the current lineup of Dean Foods branded dairy products enables Dean Foods to offer retail customers the largest and most comprehensive dairy offering across multiple segments with national brands that consumers know and trust. It also allows us to further leverage our manufacturing and distribution network,” said Gregg Tanner, CEO of Dean Foods. 

“We believe the dynamic and growing Organic Valley brand of organic milk is the perfect complement to our own category-leading DairyPure and TruMoo brands and gives Dean Foods a strong position in the organic dairy segment.”

George Siemon, CEO of Organic Valley, stressed the continuity of the product as well as the potential to increase distribution. “The same farmers will supply the same organic milk. But now more Organic Valley organic milk will be on more grocery shelves across the country,” he suggested. 

The joint venture expects to begin processing and shipping Organic Valley products in mid-to-late 2017.

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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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