Dean Foods, Dear No More
Dean Foods, Dear No More
Pension commitments are good. They reflect a company’s commitment to employees’ lives. But what went wrong is zero innovative way or approach to tackling the falling market. People are deviating from chocolates, milk and sugar for long. So why didn’t Dean diversified long ago into lots of new markets?
Alternatives for the dean todos, after chapter 11.
1- Very obvious one. Diversify into alternative milk products as demand for cow’s milk is going lower. Diversify more into the health-conscious products. This is the root to save the jobs of 15000 employees and 14000 dairy suppliers. Teach them to change and diversify. One innovation will build an entire company and 100 innovations will feed many families for years. And with 1000 innovations, the patent itself can fetch cash flow.
2a- Have direct to business to consumer approach. Given there is Doordash and UberEats/Uber fresh and a few budding door delivery services why not use them to deliver at the door. There are vending machines and vendors based system that supplies directly to the consumers. Walmart will do the same but don’t you know people know your brand.
2b- Btoc with more diversification will give balance and control of the market.
3- PR is a must to do. Showcase the importance of Vitamin D and B12 to the vegan. Yogurt is a probiotic and helps fight insomnia. Dairy is part of the food plate and milk is a must for children’s growth. Articles, vlogs and true stories need to be promoted.
4- Selling products in cheese form has more shelf life. But churn innovative diverse cheese varieties which are really yummy.
5- Why not diversify into candies?
6- Reposition and rebrand.
There are college dropouts who are making billions because they found the idea of an opportunity in the chaos. Dean Foods is a 94 years old company with 15000 +14000 ideas at least. This is the time when even employees who don’t care will care, employees who never listen will listen. A market is always ruled by the leader. Stay the leader of the diary. Or stay the leader of the diversified diary.
