Wednesday, October 13, 2010
Dean Foods to axe Schepps dairy products in Dallas-Fort Worth by early 2011
Switching over to Oak Farms.
DALLAS Dean Foods Company announced that it will convert its retail Schepps-branded dairy products to the Oak Farms brand in the Dallas-Fort Worth area by early 2011. After the transition, both of the company's manufacturing facilities in Dallas will produce Oak Farms-branded products. Currently, one facility produces Schepps products and the other facility produces Oak Farms products. Dean Foods expects the change to result in manufacturing, supply chain, and marketing efficiencies.
To ease the transition for consumers and retailers, beginning the week of October 11, all DFW-area retail customers who currently receive Schepps milk in gallon and half-gallon plastic containers will begin receiving milk carrying a label that includes both the Oak Farms and the Schepps logos. After this transitional period, estimated to be completed by February 2011, all retail dairy products will carry Oak Farms branding exclusively. Some food service products will continue to carry the Schepps name after the transition.
Schepps' sponsorships and commitments in the community, such as the Schepps Reward Program, will continue under the Oak Farms name.
"Our success as a business, and as a strong Dallas employer, depends on our ability to drive efficiency throughout our system," said Rick Zuroweste, Chief Marketing Officer for Dean Foods. "Maintaining two brands in the Dallas market creates inefficiency in manufacturing, delivery routes and packaging costs. This change will allow us to eliminate those inefficiencies and consolidate our marketing support behind a single strong regional brand."
The move allows the company to build upon Oak Farms' strong brand presence throughout the region. Oak Farms already accounts for more than 60 percent of Dean Foods branded white milk in North Texas and more than 80 percent in East Texas. Oak Farms brands are also available from the company's production facilities in Houston, San Antonio and Waco.
"Dean Foods is proud of the Schepps heritage and this was not an easy decision," said Zuroweste. "However, we are confident that the move to the Oak Farms brand in the Dallas area is the right decision for our company, our retail customers, and our consumers, who will continue to find the same great taste and quality in our products."
Source: Dean Foods