Dean Foods to shutter 13 plants, cut costs, eliminate 840 positions

Nation's Restaurant News, June 10, 1996

FRANKLIN PARK, Ill. -- Dean Foods Co., a diversified food processor and distributor based here, said it would shutter 13 of its 63 plants and eliminate some 840 positions in a broad restructuring of its operations.

The company, which absorbed a $150 million charge against fourth-quarter earnings as a result of the restructuring, said it would focus its resources on its fluid-milk business through internal expansion and acquisitions.

Meanwhile, Dean's icecream operations will be focused on strong regional brands that can compete with national brands, the company said.

Among other restructuring initiatives, Dean Foods also will pare down its investments in the frozen- and canned-vegetable businesses, close or dispose of seven of its 20 vegetable plants and reduce its investment in inventories by $30 million over the next several months.

It also will consolidate its pickle-processing operations and step up its investments in such specialty-foods businesses as nondairy-powder products, dips and cheese sauces to fuel expansion in those business lines.