Dean Foods Company Dean Foods is a food and beverages firm that was incorporated in 1994. It deals with the processing and distribution of fluid milk and other branded and private-branded dairy foodstuffs in the U.S.A. The company also retails bottled water, juices, and teas. By the end of 2016, Dean Foods had 66 manufacturing plants situated in 32 states and more than 50 dairy brands. At the end of fiscal year, 2015 Dean Foods reported sales amounting to $ 8,121,661, a decline of from the 2014’s sales revenue $9,503,196. But the gross profit increased from 2014 to 2015, $1,974,409 to $1,673,463 which can be attributed largely due to decline in cost of sales from $7,829,733 in 2014 to $6,147,252 in 2015. At the end of 2015, Dean Foods reported a net loss of 8,508 million while the net loss of the previous year’s net loss was 20,296 million. At the end of the previous quarter in December 2016, the sales increased to $2,018,000 and net profits of $ 32.83 million. The profitability drivers in the food and beverage industry are the Good product mix, superior service, effective marketing, and efficient operations. …show more content…
The high prices and a sluggish economy have impelled some fluctuations at the customer level which have led to major changes in the food and beverage sector. The private label brands have remained in high demand, as the price-sensitive and cost-conscious customers purchase cheaper products. The industry is experiencing a continued shift in where consumers shop, with customers reducing visits to shopping malls and shopping online, warehouse clubs, or discounted stores. Similarly, the demand is affected by preference for small package sizes, healthier, economical, and smaller