Dean Foods Co. and CROPP, an independent farmer cooperative, are partnering in a strategic joint venture to bring organic milk to retailers through Dean Foods’ processing plants and refrigerated direct store delivery distribution system.
The 50-50 joint venture will serve as a strategic growth platform for both companies. Dean Foods will provide processing services and distribution through its refrigerated distribution network. Organic Valley will provide a select portfolio of recognized brands and products, marketing and access to an organic milk supply from America’s largest cooperative of organic dairy farmers.
Officials from both companies say the partnership will leverage their sales expertise to drive distribution. Dean Foods brings experience in channels such as large format, dollar store and c-store while Organic Valley brings expertise in the natural channel, emerging markets and specialty 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 Dean Foods CEO Gregg Tanner. “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.”
Added Organic Valley CEO George Siemon, “This partnership reinforces Organic Valley’s mission to support more organic farmers and grow our business.”
The joint venture expects to begin processing and shipping Organic Valley products in mid- to late 2017.