Californian retailer Stater Bros. has announced the completed sale of Santee Dairies to Dean Foods.

Jack Brown, Stater Bros. chairman, president and CEO said yesterday (14 October) that it was "the right thing" to sell Santee.

He said: "The future growth of Santee Dairies products was limited because most potential customers are competing supermarket chains that already operate their own dairies."

Brown added: "This sale was clearly the best decision for the future growth of Santee Dairies. Stater Bros. Markets will continue to purchase Santee's fine dairy products, including Stater Bros. Milk, ValuTime Milk, Knudsen Milk, and Arnold Palmer tea products."

In August Stater Bros. posted a drop in profit for the first three quarters of the year, but insisted it was "pleased" with the results.

Net income for the nine months to 28 June amounted to US$29.8m, a drop from $33.5m in 2008.