- Dean Foods Co.'s chairman Tom C. Davis has resigned from his post, effective immediately, without explanation from Davis or the company. The announcement came just days before Dean Foods' most recent earnings report.
- Davis has served on the board for Dean Foods since 2001 and became nonexecutive chairman in 2013 replacing the previous chairman who left to head WhiteWave Foods Co., which Dean Foods spun off to focus on plant-based dairy products.
- Though raw milk costs are down 33% year over year, Dean Foods had not lowered its prices, which led to a decline in volumes and sales as a result, according to Reuters.
Dean Foods reported its highest gross profit and per gallon operating income since 2012, according to a press release. While still at a loss, fluid milk volumes for Dean Foods improved sequentially, 24/7 Wall St reported. However, the company lost nearly 1% of its fluid-milk market share last quarter year over year.
On the earnings call, CEO Gregg Tanner said domestic and international supply growth should outpace demand. Tanner also discussed DairyPure, which Dean Foods launched earlier this year to consolidate its milk brands and take back market share from competitors. So far, the company reported "stepped up advertising and marketing supports" but said it is too soon to predict long-term performance.