As demand for traditional dairy products continues to decline, plant-based alternatives are becoming increasingly popular. This has also had an impact on the US dairy company Dean Foods in the form of a drop in profits. In order to counteract its losses and simultaneously realign itself, the company now wants to concentrate largely on marketing plant-based milk product brands such as Good Karma.
Last year, the dairy industry recorded a fall in profits of around 91 percent in the third quarter, not least as a result of falling consumer demand for conventional dairy products. As a result, contracts were terminated for many milk suppliers, and more investment was announced in the field of plant-based alternatives. “We want to get back into the plant-based business,” said Dean Foods CEO Ralph P. Scozzafava.
The plan is to further develop the plant-based Good Karma Foods brand, which mainly produces vegan alternatives to yoghurt and dairy products, and thus to increase profits. The company created the first conditions for this project as early as 2017, with a minority stake in Good Karma. A few months ago, it invested again to finally become a major shareholder.
Scozzafava said, “We think Good Karma is the platform for us. And I remind everyone how small Silk was when it started out a few years ago. Just remember that Good Karma will be very similar for us, because that is our responsibility.”