Dean Foods Company (NYSE: DF) plans to convert its retail Schepps-brand dairy products to the Oak Farms brand in the Dallas-Fort Worth TX area by early 2011. After the transition, both of the company’s manufacturing facilities in Dallas will produce Oak Farms-brand products. Currently, one facility produces Schepps products and the other produces Oak Farms products. Dean Foods expects the change to result in manufacturing, supply chain, and marketing efficiencies.
To ease the transition, 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 Schepps logos. After this transitional period, estimated to be completed by February 2011, all retail dairy products will carry Oak Farms branding exclusively. Some foodservice 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.
Rick Zuroweste, chief marketing officer for Dean Foods, said, “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’ brand presence throughout the region. Oak Farms already accounts for more than 60% of Dean Foods-brand white milk in North Texas and more than 80% in East Texas. Oak Farms brands are also available from the company’s production facilities in Houston, San Antonio, and Waco.
