Don’t Cry Over Spilled Oat Milk: One of the U.S.’s Largest Dairy Producers Files for Bankruptcy

Like many millennials, this writer grew up with a fresh gallon of milk in the fridge, walking down elementary school hallways plastered with posters of wholesome celebrities sporting milk mustaches. These days however, whether its for environmental reasons or simply a dietary preference, more and more consumers are opting for oat milk lattes, soy milk in their matcha, or pouring a delicious vanilla unsweetened almond beverage over their morning granola.

According to CNN, Dean Foods, the producers of such ubiquitous brands as Dairy Pure, Organic Valley and Land O'Lakes, is filing for bankruptcy, and company representatives think the rise in popularity of alternative milks are to blame. Company sales fell 7% in the first half of 2019, and profits dropped 14%. Comparatively—although it is a much smaller industry—sales of oat milk have jumped 636% to $53 million over the past year.

While sales are falling, the 94-year-old company is also struggling to pay out pensions for rapidly retiring generation of Baby Boomers. CNN reported that on Tuesday, Dean Foods filed for Chapter 11 bankruptcy. 

This company’s story is just one unfortunate iteration of two major trends that are impacting the franchising industry: a movement toward more eco-friendly products and plant-based alternatives in restaurants and foodservice, and an increasing number of retirees, many of whom are seeking care outside of nursing homes. Dean Food’s file for bankruptcy is perhaps exemplary of the fact that even industries that are seemingly “Amazon-proof”, or resilient to retail’s major shift towards e-commerce, still need to stay on top of trends to stay relevant in a rapidly-changing consumer marketplace. 

Read the full story in CNN here.