Leahy Could Have Justice Department Look Into Suiza's Purchase of Dean Foods

Food & Drink Weekly, April 16, 2001

Senator Patrick Leahy (D-Vt.) says Suiza Foods Corporation's purchase of Dean Foods would be disastrous for consumers. "The acquisition would produce a company with vast market power not only over consumers but also over farmers who can expect to be offered even lower prices for their labor and their products," said Leahy in a recent statement. "Suiza Foods already controls or handles about 70 percent of the fluid milk in New England, and regional retail milk prices already have risen because of the concentration."

Leahy noted that last year he asked the Justice Department and six New England attorneys general to look into Suiza's potential anti-competitive activities. "This year I questioned Attorney General John Ashcroft at his confirmation hearing about this issue and asked him to vigorously examine the dramatic changes that have occurred in the past three or four years in the dairy sector as a result of consolidation, and I specifically cited Suiza Foods." Leahy said.

Suiza said the deal would form a dairy and specialty foods company with $10 billion in annual revenue. The business, which will be called Dean Foods, will be headquartered in Dallas, Texas. The transaction is valued at $2.5 billion, including the assumption of $1 billion in debt.