Got Milk? Probably not anymore.
America’s largest milk producer, Dean Foods, filed for bankruptcy Tuesday as more people are choosing to ditch the household staple for non-dairy alternatives like almond, soy, coconut and oat milks.
The Dallas-based 94-year old dairy processor — responsible for some of US grocery store’s most recognizable brands including Dairy Pure, Organic Valley and Land O’Lakes — has seen a drastic 14 percent drop in profits so far this year, CNN reported. Sales also fell 7 percent.
But instead of crying over spilt milk, the company filed for Chapter 11 Bankruptcy to keep the business open, replenish debts and pay off pending pensions.
Company bigwigs are the first to admit that the rise in lactose-free milks is responsible for their financial woes.
“We continue to be impacted by a challenging operating environment marked by continuing declines in consumer milk consumption,” said Dean Foods President and Chief Executive Officer Eric Beringause in a statement.
Over the last two decades, Americans have drunk 26 percent less cow’s milk per capita, according to data from the US Department of Agriculture.
Dean Foods is now in “advanced discussions” with Dairy Farmers of America about a possible sale, the press release states.
In the interim, Dean Foods secured $850 million in debtor-in-possession financing from lenders to keep the company afloat.