Dean Foods, CROPP form joint venture to expand organic milk distribution
The 50/50 joint venture will serve as a strategic growth platform for both companies.
Dean Foods Co., Dallas, Texas, and CROPP Cooperative, an independent farmer cooperative based in La Farge, Wis., formed a strategic joint venture to bring organic milk to retailers through Dean Foods' processing plants and refrigerated direct-store-delivery (DSD) 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 extensive refrigerated distribution network. Organic Valley will provide a select portfolio of recognized brands and products, marketing expertise and access to an organic milk supply from what is said to be America's largest cooperative of organic dairy farmers. Both Dean Foods and Organic Valley will leverage their sales expertise to drive distribution; Dean Foods brings extensive 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.