So I’m sure dollar general will jump ship soon
Does this company really think the dairy pure brand can make it
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Heard that Dollar General was making plans to start own dairy. Not sure if that was anything more then rumors. But delivering to Dollar General distribution centers certainly more attractive to competition then delivering to Dollar General stores and sure competition will come after that business.
Not sure how long you're been with Dean Foods, but we went through a couple of years where virtually everyone hired in upper management in Dallas was a cast off from Coke or Pepsi. The reason was to try and turn the Dean Foods brand into the Coke or Pepsi of milk. All it really amounted to was coming up with the Tru Moo and Dairy Pure brands which don't mean anything to customers who buy based on price and not label.
Foolishly believing that milk was equivalent to soda pre-dated Ralph, but pissing off customers by increasing prices when competition was lowering theirs, outsourcing work even when outsourcing didn't save money or make sense, closing more locations then should have been closed, cutting employee benefits, and cutting maintenance expenses and capital expenditures were all on Ralphie.
Disappointed new CEO hasn't been very forthcoming with specifics to undo Ralphie's damage, but certain things (customer relationships, coming up with the millions and millions needed for repairs and improvements) may be too far gone to fix.
Sadly, I think if Dean Foods does survive it's going to be as a much smaller company that operates in specific regions- can't sustain trying to directly distribute limited shelf life products nationwide when the biggest nationwide companies are no longer customers.