Food & Beverage

Milk processor Dean Foods explores options, including sale

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U.S. milk processor Dean Foods said on Tuesday it was exploring options for the company including a sale, as it struggles with falling milk consumption in the country.

Shares of the Texas-based company rose 9 percent to $4.96 in extended trading.

The owner of milk brands TruMoo and Barber's has been rocked by shifting consumer preference for non-dairy and private-label alternatives, forcing it to close plants and sever contracts with independent dairy suppliers.

The company has missed earnings estimates in six of the last eight quarters, according to Refinitiv data.

Dean Foods is also looking at options such as the sale of certain assets or the formation of a joint venture. 

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Key Points
  • Kraft Heinz tapped investment bank Credit Suisse to review options for its Maxwell House coffee business, people familiar with the matter tell CNBC.
  • The coffee business has roughly $400 million in earnings before interest, taxes, depreciation and amortization, the people said, and it could fetch a deal price in the billions.
  • The coffee business could be one in a string of divestitures, as the ailing food company looks to stabilize its business.