Kraft Food Acquisition of Dean Foods

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------------------------------------------------- Dean foods co acquisition analysis Prepared for Jennifer Thompson, Vice President of Acquisitions, Kraft Foods Group Prepared by, Analysts, Kraft Foods Group ------------------------------------------------- Dean foods co acquisition analysis Prepared for Jennifer Thompson, Vice President of Acquisitions, Kraft Foods Group Prepared by, Analysts, Kraft Foods Group Contents Introduction 1 Financial Analysis 1 Competitive Advantage 2 Sustainability, Innovation and Globalization 3 Growth Potential 3 Summary 4 Recommendation 4 References 5 Supplemental Information 7 introduction dynamic environment The fluid milk industry as a whole is a unique and challenging environment for US dairy companies. US demand is shrinking (Cardello, 2015) and demand in emerging global markets is increasing (Martin, 2014). Commodity prices can swing violently which has an immediate impact of profitability (Tanner, 2015, p.2). The only thing that swings more violently than commodity prices is opinions on the health benefits of dairy. Scientists, doctors, and self-proclaimed nutrition experts have opinions that spread across the entire spectrum. The US trend towards whole, unprocessed, organic foods is another challenge that must be addressed (Katz, 2012). Dairy companies must be agile in such an environment in order to be successful. company profile Dean Foods is one of the largest producers and direct-to-store distributors of fluid milk in the US (Dean, 2015). Sales in 2014 were more than $9.5 billion (Tanner, 2015, p. F-2), and sales of Dean Foods branded products represented 35% of national milk sales (Tanner, 2015). Dean Foods currently focuses on the US market, pursuing sales growth through new product introduction. In reaction to challenges in the industry, Dean Foods closed 12 plants in 2013 and 2014,

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