Shares in major dairy company Dean Foods Co. dropped by 8.9% this week, to the lowest share price the brand has seen since 2011.
Bloomberg Markets writer said: “Americans are turning away from milk amid a wealth of other beverage options and as non-dairy substitutes like almond and oat milk gain popularity.
“In March, a gallon of whole milk fell to about $2.90 at U.S. grocery stores, the cheapest in 14 years, according to data from the Bureau of Labor Statistics.
“Dean Foods earlier this year unveiled a cost-cutting initiative and has planned to end supply contracts with some farmers as the processing sector gets more competitive. Retail chain Food Lion is also ending a contract with Dean.”
Last year the dairy brand announced their third-quarter profit fell by 91% as more people adopted dairy-free alternatives instead.
Last year, Dean Foods CEO Ralph Scozzafava, mentioned that the business would now look to diversify into other markets to mitigate risk.
“Our initiatives to build strong brands and diversify our portfolio will build brand equity on Dairy Pure through new product innovation and enhanced consumer marketing,” Scozzafava said.
Dean Foods has since invested in plant-based brand Good Karma Foods as they begin their entrance into the plant-based market.