Plaintiffs receive $17.8 million in egg price fixing lawsuit



CHICAGO — An Illinois federal jury on Dec. 1 awarded $17.8 million to plaintiffs Kraft Heinz Co., the former Kellogg Co., General Mills Inc. and Nestle USA Inc. in an egg price fixing lawsuit, according to Jenner & Block, the law firm that represented the plaintiffs. The companies are entitled to have the amount trebled, according to Jenner & Block.

Defendants in the case include Cal-Maine Foods Inc., Rose Acre Farms, the United Egg Producers Inc. and the United States Egg Marketers Inc. Cal-Maine Foods has petitioned the court to enter a judgment in its favor, known as a directed verdict, notwithstanding the jury’s decision.

“Cal-Maine Foods respects the jury’s decision and appreciates that the damages awarded by the jury are relatively modest compared to the damages sought but remains disappointed with the verdict as Cal-Maine Foods continues to believe that the company did nothing wrong,” the company said.

The lawsuit originally was filed on Dec. 12, 2011, which was before Kraft Foods and Heinz merged and before Kellogg Co. spun off into WK Kellogg Co and Kellanova. The plaintiffs alleged the defendants engaged in a conspiracy to control supply and artificially maintain and increase the price of eggs. A jury in the US District Court for the Northern District of Illinois ruled in favor of the food companies on Nov. 20 of this year.

Cal-Maine cited improving the treatment of egg laying hens, which started about 20 years ago when the industry began adopting the United Egg Producers certified program, which was not designed to restrict supply and affect prices.

“The plaintiffs alleged that the prices they paid for processed egg products were increased by the defendants’ conduct,” Cal-Maine said. “The plaintiffs, however, continue to demand egg products created from UEP-certified eggs and/or eggs from hens that otherwise are humanely raised.”



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Posted on Categories Eggs

Tyson, Amick Farms settle wage price-fixing case



ANNAPOLIS, MD. — Within the past week, two additional settlements have been reached in a class-action lawsuit against several poultry processors for alleged wage price-fixing.

Tyson Foods Inc. and its subsidiary Keystone Foods proposed a settlement on Aug. 12 to the US District Court for the District of Maryland. A few days later, on Aug. 16, Amick Farms LLC filed a settlement. The terms of both deals were not disclosed.

These settlements add to previously reached agreements including one with Pilgrim’s Pride ($29 million), Simmons Foods ($12 million), George’s ($5.8 million), Peco Foods ($3 million), Cargill ($15 million), Sanderson Farms ($38.3 million), Wayne Farms ($31.5 million), Perdue Farms ($60.65 million), Case Farms ($8.5 million) and Mountaire Farms ($13.5 million).

In 2019, workers sued the poultry processors for allegedly violating the Sherman Act by conspiring to drive down hourly wages and salaries at poultry processing plants for more than a decade.

According to the complaint, the processors exchanged compensation data provided by Agri Stats Inc. and other sources. The plaintiffs claimed the companies held “off the books” meetings, where managers exchanged future compensation plans across facilities through phone calls and electronic surveys.



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Posted on Categories Poultry

Foster Farms appoints new CEO



LIVINGSTON, CALIF. — Foster Farms named Jayson Penn the company’s new chief executive officer on March 18.

Penn succeeds Donnie Smith, who was appointed CEO of Foster Farms in conjunction with Atlas Holdings’ acquisition of the poultry company in June 2022. Smith retired from his role as CEO of Tyson Foods in 2016, after working for the company for 36 years.

“Foster Farms has been a household name for nearly a century, and I’m excited to continue working to position this iconic brand for success for many years to come,” Penn said. “We will be focused on serving our team members and supporting our customers with products they can trust. A solid foundation for smart growth has been set, and I’m ready to get started.”

Most recently, Penn served as president of John Soules Food. He began his career in his family’s poultry business and spent nearly a decade with Pilgrim’s Pride Corp., ultimately serving as CEO. He also has experience from various sales and operations roles with Case Foods, Marshall Durbin Co. and Sanderson Farms.

In addition to Penn’s appointment, Foster Farms announced James Richards as the new chief financial officer.

Richards joins Foster Farms from Kodi Collective, were he served as president and CEO. He led a successful turnaround of the business, returning it to a market-leading position in print and marking services. Earlier, Richards spent more than two decades with General Electric, where he served across diverse industries in senior CFO, chief information officer and operations transformation leadership roles.

“We are excited to have Jayson on board to lead the transformation journey underway,” said Atlas Partners Sam Astor, Ed Fletcher and Mike Sher. “Jayson and James bring immediate strength to the broader leadership team. Jayson’s deep industry experience and commitment to operational excellence provide the right combination to lead Foster Farms into the future.”



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Posted on Categories Dairy

OSI Industries recalls beef patties | 2019-10-29


AURORA, Ill. – OSI Industries LLC, Fort Atkinson, Wisconsin, launched a recall of 4,218 lbs. of seasoned, char-broiled beef patties that may be contaminated with small pieces of metal, the Food Safety Inspection Service (FSIS) of the US Dept. of Agriculture reported.

The frozen, ready-to-eat beef patties were produced on Aug. 10, 2019, and distributed to other USDA establishments in Iowa and Wisconsin for further processing, the company said.

The affected products include 38-lb. bulk lined boxes of frozen, ready-to-eat “CHAR-BROILED BEEF PATTIES (CARAMEL COLOR ADDED)” with lot code 22219. The products bear establishment number “EST. 1300” inside the USDA mark of inspection.

“The problem was discovered during further processing activities at another federal establishment,” FSIS said. “There have been no confirmed reports of adverse reactions due to consumption of these products.”

Consumer inquiries should be directed to OSI Industries LLC, toll-free at 855-206-1934.



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Posted on Categories Protein

Superior Farms takes a stand


Superior Farms is the last packing plant standing in the city limits of Denver.

Decades ago, several livestock production facilities operated just across the river from the Denver Stockyards where cattle and lamb were fed and then walked over the bridges into the packing plant.

The city of Denver changed dramatically during that time as its population surged. It continues to try to attract people from around the United States into the existing agriculture community.

In November, the processing plant’s fate will be decided by voters as an initiative that would prohibit slaughtering inside the city limits by 2026 will be on the ballot. Pro-Animal Future, an animal rights activist group, introduced the measure. The group’s proposed ordinance would eliminate slaughtering operations in Denver and “promote community awareness of animal welfare, bolster the city’s stance against animal cruelty, and in turn, foster a more humane environment in Denver.”

Currently, that initiative would affect one business: Superior Farms’ lamb processing plant, which has been owned by the company for more than 40 years.

Rick Stott, chief executive officer of Superior Farms, discussed the proposed initiative during the 2024 Annual Meat Conference. He made it clear that activist groups are looking to disrupt the existing meat business.

“The people that are proposing this, their goal is to eliminate animal ag in the state of Colorado. That’s their stated goal. They took that off their website for now, but that’s what they want to do,” Stott said.

The company’s Denver plant is the largest lamb packing facility in the United States, processing about 1,500 head per day.

The facility functions as both a harvest and fabrication facility that breaks lamb down to primals. It also has case-ready production. Following final packaging, the products are shipped all over the East Coast. Stott added that the plant brings in lambs from most farms west of Iowa. Superior Farms is the only lamb company with a nationwide footprint that services national retailers.

Plant details

The Denver plant employs 160 people, with nearly 80% of the employees being residents of Denver, according to Superior Farms.

After the ballot initiative was proposed, Stott and other stakeholders at Superior Farms knew they needed to get out and educate the public about the plant. A consulting group hired by Superior Farms conducted a poll of 800 Denver voters to gauge what the public was thinking about this issue. The consultants read the initiative and asked people how they would vote without any background. Stott said the poll results showed that voters were evenly divided about the issue, and he did not know whether Superior would win or lose.

Stott realizes the importance of explaining Superior’s position so voters can make informed decisions.

He believes that liberal voters and liberal council members will resonate with their message because the ballot initiative threatens to eliminate 160 good-paying jobs and the many benefits the employee-owned business provides to the community.

“I think the voters will resonate with the message of saying it’s not fair to target a particular business,” Stott said.

Superior Farms has functioned as an Employee Stock Ownership Program (ESOP) company since 1981. Stott explained that many of the employees at the company have been there for more than 15 years.

Other than the plant in Denver, Superior Farms’ only designated lamb facility is in Dixon, Calif., which it remodeled in 2016. Superior also operates a small fabrication facility in Boston and a small warehouse in Los Angeles.

If the plant shuts down, Stott said not only would 160 jobs be eliminated, but about half of Superior’s lamb suppliers would have to find another packing plant to go to, making a closure devastating for the American lamb industry.

Stott said their employees are the most compelling people to convey the benefits of keeping the plant operating. He highlighted two people in the plant who are well suited to share the message: Gustavo Fernandez, the plant manager, and Isabel Bautista, assistant general manager. The two longtime employees started working at the plant sweeping floors decades ago and now help run the operations in Denver.

“Although they are not political at all, they’re very uncomfortable doing that, they are very passionate about that plant, very passionate about their employees, the fellow owners of this plant,” Stott said.

Superior Farms prides itself on the retention rate of its workers. Stott himself has been there for 10 years and barely broke into the top 50% of longevity at Superior Farms.

“We have a very low turnover rate,” he said. “We have people lined up wanting to come to work for us. It’s a great environment. Most of the people who want to work for us come from family, friends and neighbors.”

Superior Farms’ Denver facility employs 160 people, with a large portion living in the city. (Source: Superior Farms)

Working on the campaign

In an initial poll of local residents, Stott said 70% of the people from Denver did not even know that Superior Farms existed within the city limits.

“That’s a big part of what we discovered is we need to communicate who we are,” Stott said.

One way Superior recently engaged with the community was to sponsor Denver Restaurant Week in 2024, so the brand’s partnerships with area restaurant operators would be promoted to the public.

“We wanted to show that we are the local lamb supplier in Denver and that was a big deal,” Stott said. “That really was a very positive thing to get who we are out in our name and recognition. Those are the kind of things that we’ve got to do.”

But with a political season ahead, Stott and Superior Farms know the company needs to raise capital to finance the campaigning ahead of the November vote. Stott also explained that this is the first ballot initiative that targets an existing packing plant, which he calls a big concern for all interested meat companies.

“This is not just about us,” Stott said. “This is about the entire protein industry. If they can do this in the Cowtown of Denver, then they can probably do it in Omaha. They can do it in Philadelphia, Chicago, LA, Portland, etc. All these towns that are very liberal and have packing plants in those cities.”

Since March, Stott and others have started fundraising and discussing the initiative at national conventions of meat industry stakeholders.

“So much of our industry oftentimes say, ‘well that’s a pig problem, or that’s a dairy problem, or that’s a beef problem,’” Stott said. “But I’ve been very encouraged to see that when I am in front of these executive committees and these associations, that they recognize that this is not just a sheep problem. This is not just a Superior Farms problem. This is really a protein problem that we’ve got to send a signal to these animal liberation groups that this is not a pathway they can take and win.”

According to Stott, if the initiative passes, the Denver City Council has six months to overturn the decision. However, that would be six months of uncertainty for employees, customers and suppliers.

“That’s pretty damaging to any business to have that uncertainty in place,” Stott said.

Early in the campaign process, the Meat Institute helped Superior Farms organize others in the industry to recognize the threat this ballot initiative could pose for other processors around the country and change how many protein companies do business near large population centers.

“The resources that they provide, particularly to a company like ours which is relatively small, was phenomenal,” Stott said of the Meat Institute.

Superior was able to access legal opinions, marketing tools and other coalition resources that will help the company in the long term as it broadens its message in Denver and the United States.

“They’ve made introductions for me to go and speak at executive committees and different association meetings. They are on every call that we have about this and provide great guidance and direction of perceptions and guidance,” Stott said of Meat Institute. “The success we’re having would not be there without them.”

Stott pointed out that his company’s work to educate the public on the initiative has to be done early in Colorado. Every registered voter automatically receives a ballot by mail in the state. Those ballots can then be sent back or put into drop boxes around their city or county.

With that set up, Stott believes their campaigning needs to be nearly finished by mid-October, knowing some residents will also vote in person on Election Day in November.

“Our challenge now is to communicate who we are, to make sure people know that we exist, make sure that we communicate, that we tell truth, not lies,” Stott said.



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Seaboard Q2 results reflect positive pork performance



MERRIAM, KAN. – Seaboard Corp. announced its financial results for the second fiscal quarter ended July 3, 2021, including an operating income of $129 million in its Pork segment. This is up from a $9 million in the same period during 2020.Operating income for the first six months of 2021 was $190 million compared to $41 million last year.

According to the company’s filing with the Securities and Exchange Commission (SEC), the company reported total net sales of $2.43 billion compared to $1.81 billion during the same period last year.

In the second quarter, strong signs remained in pork segment as net sales rose to $693 million in the second quarter, about a 51% increase over the same quarter in 2020, which totaled $459 million. 

As an investor in Butterball LLC, Seaboard reported net sales of $371 million in Q2, a 13.5% increase compared to $327 million during the same period in 2020. In its turkey segment for the second quarter, the company reported a net loss of $4 million, an improvement from the previous year’s loss of $14 million.

In the SEC filing, Seaboard said Butterball products continue to increase in sales volume and higher revenue per pound. Turkey segment headwinds included a weaker sales mix due to decreased value-added product sales and higher feed and plant production costs.

“Interest costs were lower than the same periods in the prior year primarily due to mark-to-market fluctuations on interest rate swap agreements,” the company wrote in its filing. “Management is unable to predict market prices for turkey products, the cost of feed or the ongoing impacts of the COVID-19 pandemic for future periods. Based on these conditions, management cannot predict if this segment will be profitable for the remainder of 2021.”

Seaboard also explained in the filing that it continued to cope with challenges from COVID-19 including labor and partially staffed shifts as well as commodity market volatility.

“The near and long-term impacts of the COVID-19 pandemic on Seaboard’s operations and the global economy are unknown and impossible to predict with any level of certainty,” the company said. 



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Posted on Categories Seafood

HPAI ravages on despite improved safeguards



KANSAS CITY, MO. — The recent upsurge in the number of cases of highly pathogenic avian influenza (HPAI) and the increasing number of hens euthanized has been concerning, but the impact on egg product prices remains muted compared with the impact of HPAI in 2022 when prices shot to record highs late in the year.

Since the initial 2023 HPAI detection in a commercial egg laying flock was reported Nov. 3, there have been 16 cases in five states with a total of 12.9 million laying hens euthanized as of Dec. 28. California reported the most facilities with HPAI at eight (3,214,400 hens), followed by Ohio with three (4,522,500 hens), Iowa (2,737,400 hens) and Kansas (1,500,000 hens), both with two and Minnesota with one (940,000 hens). The total of laying hens lost to HPAI equals about 4% of the total table or market type egg laying flock estimated at 322 million by the US Department of Agriculture as of Dec. 1.

Somewhat troublesome has been detections in two commercial table egg pullet facilities, one in California with 151,000 birds and one in Ohio with 1,363,900 birds. The loss of more than 1.5 million pullets (about 1.2% of total pullets on hand as of Dec. 1) will delay the restocking of commercial egg laying facilities.

Just as there were significant differences between the 2022 HPAI outbreak and the 2015 widespread outbreak, there also are significant contrasts between the 2023 outbreak that started in November with that of the 2022 outbreak that started in February and ran the entire year. The number of laying hens lost in 2023 was much less than in 2022, and the timing of lost production with seasonal demand cycles was different.

Brian Moscogiuri, global trade strategist with Eggs Unlimited, said the 2023 outbreaks began late in the year when food manufacturers were seasonally winding down demand for dried egg products as is typical during the November-December holiday period. Sales of eggs and egg products to foodservice also were down, he said. Shell egg demand outpaces egg product demand during the Thanksgiving to Christmas holiday period, and retailers may have been less aggressive with promotions this year amid supply uncertainty. In contrast, there was an upsurge in HPAI outbreaks in the spring of 2022, affecting supplies used to make dried products by food manufacturers ahead of the higher-demand summer months, then another upsurge late in 2022 when retail demand peaks and laying flocks had not yet been fully repopulated that sent shell egg prices to record highs.   

Shell egg prices have been volatile during the 2023 outbreak period, moving higher overall, but prices for dried egg products have mostly been unchanged. Wholesale prices for Grade A large eggs nearly doubled between Nov. 3 and Dec. 1, tumbled 30% between Dec. 1 and Dec. 15, then jumped 36% between Dec. 15 and Dec. 29. The December 2023 high still was 35% below the December 2022 record high that approached $5.50 per dozen. Egg product prices were unchanged between Nov. 3 and Dec. 30, 2023, except for a bump up in liquid and frozen whole eggs in early November following shell eggs higher. In fact, most egg product prices are down from late October, reflecting a seasonal decline in demand. During the record-high shell egg price period of December 2022, egg product prices moved higher but did not reach highs set earlier in the year, again reflecting less winter demand for egg products.

Moscogiuri expects the HPAI situation will continue to underpin egg and egg product prices in the months ahead, with perhaps a greater impact when shell egg demand typically increases around Easter and egg product demand builds as food manufacturers boost production of mayonnaise and salad dressings in the spring to meet increased summer demand. He said HPAI also could impact the timing of forced molt (when laying hens are taken out of production for a period to prolong their laying career), which typically begins in late January. Many producers delayed forced molt in January 2023 because of high egg prices and lower hen numbers after the 2022 HPAI outbreak.

There are about 8 billion table eggs produced each month in the United States, a number that has grown during 2023 as the industry recovered from HPAI losses in 2022. January 2023 table egg production was 7.76 billion eggs, down 7% from January 2022. November table egg production (the most recent data available) was 8.02 billion eggs, up 4.3% from the prior year. Table egg production declined throughout 2022 but increased throughout 2023, although the trends were not consistent month to month.

The number of laying hens euthanized in December 2023 totaled about 7.8 million, more than double the number destroyed in December 2022. The increased supply of eggs compared with a year earlier was a factor that limited the impact of HPAI on prices late in 2023 compared with late 2022, especially considering the number of hens lost earlier in 2022 was considerably greater than in 2023.

HPAI has been detected in several countries around the world. It is commonly spread by migrating wild birds, although it also can be spread between facilities if proper sanitation measures aren’t in place. That was the case in 2015 with the first widespread outbreak of HPAI in the United States. Initially caught from wild birds, the disease in many cases was spread by people and trucks traveling between poultry operations. The industry was caught off guard. Since then, significant steps have been taken to reduce the spread of HPAI between facilities, although there is little to no protection from the impact of wild birds, and the disease could be spread by dust from fields that wild birds have flown over or rested on. The disease again ravaged the poultry industry in 2022 despite improved inter-facility safeguards taken by the poultry industry.

Since the first outbreak on Feb. 8, 2022, through Dec. 30, 2023, nearly 80 million birds (all species) have been euthanized due to HPAI, which was detected in 1,059 flocks in 47 states, including 451 commercial flocks of all types, according to the USDA. In the past three months, there were 25 detections in commercial flocks in October (1.37 million birds), 56 in November (8.08 million birds, cumulative) and 45 in December (11.47 million birds, cumulative).

Of course, the major wildcard for the poultry industry in 2024 is the impact of the spring wild bird migration. From the final HPAI detection in a commercial laying flock in Colorado on Dec. 20, 2022, there was a break until early November 2023, although outbreaks in other species occurred throughout the entire year, picking up steam in early October in commercial turkey flocks in Utah and the Upper Midwest. Typically, the spring migration has brought more outbreaks of HPAI than the fall migration, but that wasn’t the case in 2023.



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Posted on Categories Eggs

Florida sued over cultivated meat law



TALLAHASSEE, FLA. — Upside Foods, a cultivated meat company, and the Institute for Justice (IJ) filed a lawsuit challenging a recent Florida law prohibiting the sale of cultivated meat.

Information from the IJ said the new state law is unconstitutional because it violates provisions prohibiting protectionist measures designed to favor in-state businesses at the expense of out-of-state competitors.

“If some Floridians don’t like the idea of eating cultivated chicken, there’s a simple solution: Don’t eat it,” said Paul Sherman, a senior attorney at the Institute for Justice. “The government has no right to tell consumers who want to try cultivated meat that they’re not allowed to.”

The lawsuit was filed in the US District Court for the Northern District of Florida.

“A major purpose for enacting the Constitution was to prevent exactly this kind of economic protectionism, ensuring that all Americans can benefit from a free and open national market,” said Suranhan Sen, an attorney for IJ. “Florida cannot ban products that are lawful to sell throughout the rest of the country simply to protect in-state businesses from honest competition.”

Upside Foods received label approval from the USDA in June 2023 for its products.

However, Governor Ron DeSantis signed the bill back in May in Florida to ban the sale of cultivated meat. Alabama Governor Kay Ivey signed a similar law on May 7.

“Our administration will continue to focus on investing in our local farmers and ranchers, and we will save our beef,” DeSantis said in May.

During June 2024, Republican lawmakers also co-sponsored the REAL Meat Act of 2024 that would ban the use of federal funds in various areas related to cultured meat.

Upside Foods launched under the name Memphis Meats in 2015. 

The company raised $400 million in a Series C funding round during spring 2022, bringing its valuation to more than $1 billion. It’s raised $608 million in total funding from investors, including Cargill, Tyson Foods and Givaudan.



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Diestel Family Ranch earns regenerative certification



SONORA, CALIF. — Diestel Family Ranch announced on July 16 it became the first turkey producer to achieve Regenified certification. Regenified’s seal is the first third-party regenerative program to be recognized and accepted by the US Department of Agriculture’s Food Safety and Inspection Services (FSIS) for single and multi-ingredient products, according to the company.

To achieve certification, Diestel met Regenified’s 6-3-4 Standards — named for six principles of soil health, three rules of adaptive stewardship and four ecosystem processes.

“For 75 years, my family has committed to more holistic agriculture practices that not only support the best habitat for turkeys raised on our farms but also consider the impact on the land used,” said Heidi Diestel, fourth-generation farmer at Diestel Family Ranch. “Regenified certification is an important recognition of what has always differentiated Diestel turkeys from mass-produced poultry products. We lead with the strictest animal welfare and environmental standards in the market to produce the leanest, cleanest and most delicious birds.” 

Founded in 1949 by Jack Diestel, the Diestel Family Ranch has prioritized the health of its birds and thoughtful farming practices from the start. By earning the Regenified certification, the family farm strives to set the bar high and lead the industry forward.

Regenified’s certification process will help Diestel track its progress in advancing regenerative principles to improve biodiversity, soil health, water quality and nutrient density. 

Regenerating the soil at Diestel starts by feeding the birds corn grown by local farmers. Earlier this spring, Diestel sourced 650 tonnes of Certified Regenified corn. By 2035, the farm looks to replace half of its feed with Certified Regenified corn.

To mimic turkeys’ natural habitat, Diestel has set out to create a shaded environment that replicates trees in a forest. All birds on the property are given access to open land that includes over two miles of evergreen, perennial shrubs, grasses and flowering trees. The plants were selected to promote biodiversity, attracting beneficial insects, improving water quality and creating a diverse landscape along with ecosystem function.

Adding to a healthy, diverse environment, Diestel turns its organic waste into valuable, nutrient-dense compost. The farm diverts 2,117 tonnes of waste annually from landfills and produces roughly 6,350 tonnes of compost for local use.

As for the birds’ health, Diestel uses probiotics over traditional chemicals to support a healthy ecosystem on the farm and beyond.



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Posted on Categories Poultry

Dean Foods expands executive leadership team | Meatpoultry.com | July 07, 2016 19:28


DALLAS — Russell F. Coleman has been named executive vice president, general counsel, corporate secretary and government affairs for Dean Foods Co., effective Aug. 1.

Russell F. Coleman, new executive vice president, general counsel, corporate secretary and government affairs for Dean Foods 

Coleman joins Dean Foods from Meadows Collier law firm, where he was a partner. Before Meadows Collier, he was general counsel of national media company Belo Corp.

“Russ’ extensive general counsel experience as a leader in a publicly traded company, along with his significant background in leadership development, business transactions and governance and securities matters, make him an ideal fit for Dean Foods as we continue to focus on our growth,” said Gregg Tanner, CEO of Dean Foods. “He is a well-respected and proven leader and I’m excited to welcome him to our organization.” 



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Posted on Categories Dairy
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