Dean Foods to fight dairy antitrust lawsuit

Food and beverage giant Dean Foods will battle the antitrust lawsuit filed by the Department of Justice challenging its April 2009 acquisition of dairy processing plants from Foremost Farms.

The Department of Justice said the merger eliminates substantial competition between the two companies in the sale of milk to schools, grocery stores, convenience stores and other retailers in Illinois, Michigan and Wisconsin.

The lawsuit seeks to require Dean Foods to sell the dairy processing plants in order to restore competition so that schools, grocery stores and retailers can pay lower prices for the product.

The lawsuit not only seeks to undo the 2009 deal but also requires Dean Foods to notify the department at least 30 days prior to any future acquisition involving a milk processing operation.

Dean Foods, however, believes its acquisition of the three milk processing plants is fully compliant with antitrust laws and will defend itself vigorously against the lawsuit.

Dean Foods argued that the nearly one-year-old transaction has benefitted Wisconsin dairy farmers by providing a stable and growing outlet for their milk, and it has produced important cost savings that will benefit customers and spur competition in and around Wisconsin.

The company promises to deliver even greater customer benefits once the other two plants are fully integrated into the Dean network.