Dean Foods, regarded as the largest milk producer in the United States, has apparently announced to enhance its stake in plant-based products manufacturer Good Karma Foods. As per reliable sources, the Dallas based company had acquired a minority stake in Good Karma Foods in 2017, however, the details of the investment weren’t disclosed publicly at that time.
Speaking on the latest development, Chief Executive Officer of Dean Foods, Ralph Scozzafava was quoted stating that the market share of Good Karma Foods has grown significantly over the past few years, with the firm registering a dramatic growth rate last year. He further stated that the firm would make a concrete decision over the new investment in Good Karma Foods over the upcoming few months.
For the record, Good Karma Foods is a Colorado headquartered firm predominantly operating in plant milk industry. Reportedly, the company manufactures regular yogurt from flax seeds, drinkable yogurt, and dairy-free milk, among other products.
According to the latest financial report of Dean Foods, the firm has witnessed a sharp decline in net sales and posted a loss for the first quarter of this year. The dairy producer has been facing numerous challenges such as an overall decrease in fluid milk consumption across the U.S., the growing competition from Walmart and other grocers who are taking over more of their own production of milk, and an oversupply of raw milk. Owing to these factors the dominant dairy manufacturer may ramp up its stake in the swiftly expanding plant milk market, cite sources.
Reportedly, Dean Foods is likely to decide whether to increase its stake from a minority position to a majority one in the next few months. The latest stake augmentation bid of the firm is expected to strengthen its stance in the U.S. plant milk market, as per industry experts.