Dairy giant Dean Foods DF announced that it filed for Chapter 11 bankruptcy protection. The Dallas-based company has secured financing of $850 million from lenders in order to keep its business running. It also said it’s in talks with Dairy Farmers of America, a U.S. milk marketing cooperative, to sell “substantially” all of its assets.
Dean Foods has struggled—shares are down over 90% in the past two-year period—because dairy milk is slowly falling out of favor with consumers. More are choosing to buy milk alternatives at their local grocery stores, like almond milk, oat milk, and cashew milk. Additionally, sales of cow’s milk has been declining for the last four years while the milk alternatives market should hit $18 billion in 2019, up 3.5% year-over-year.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Dean Foods Company (DF) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research