Dean Foods Sells Out Organic Farmers With Release of New "Natural" Horizon Milk

From the Organic Consumers Association;

The rumors have now been confirmed.  Dean Foods’ WhiteWave division has now announced that they will bring out "natural" (conventional) dairy products under the Horizon label.  This at a time when organic dairy farmers around the country are in financial crisis due to a glut of milk. 

They are in essence creating a new product category, "natural dairy products," that will directly compete with certified organic farmers and the marketers they partner with.

This move comes on the heels of the recent decision by Dean/WhiteWave to switch almost the entire product offerings of their Silk soymilk and soyfoods line to "natural" (conventional) soybeans.  They made the switch to conventional soybeans, in Silk products, without lowering the price.  Sheer profiteering.

The likelihood is that they will create this new category and enjoy higher profits than they currently realize having to pay those pesky organic dairy farmers a livable wage.
The news story below, from the Natural Foods Merchandise quotes Dean Foods/WhiteWave officials saying these products will be "easier on the pocketbook."

Yes, they will be designed to undercut certified organic on price.

Horizon is the largest, in terms of dollar volume, organic brand in the marketplace.  Silk holds the leading market share in soyfoods and was once, prior to Dean Foods’ acquisition, a 100% organic company and brand.

SHAME!

Stay tuned.  Dean Foods has just declared war on the organic industry. Although the first shot has been fired it will not be the last.

The organic farmers, consumers and ethical business people who built this industry did so in effort to create an alternative food system with a different set of values.  We will all work hard to defend what so many good people spent so many years to create.
Mark A. Kastel
Senior Farm Policy Analyst
The Cornucopia Institute
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Horizon Organic Introduces Two New Natural Products
June 29,2009
By: Angela Cortez

Natural Foods Merchandise

Horizon Organic, the Broomfield, Colo.-based company known as one of the first certified organic dairies to distribute nationwide, is adding one new product in July and testing another in August, and for the first time in the company’s history, the products geared toward children are not organic but natural.

Next month, Horizon Organic will launch Little Blends, a yogurt for toddlers. Milk Breakers, single servings of milk, will undergo a regional market test in the area of southeast Florida in August. These products are the first the company will distribute that are not certified organic. They are natural, don’t contain growth hormones and will be easier on the pocketbook, said Sara Loveday, marketing communications manager for Horizon Organic.

"We’ve only been organic in the past and the majority of our business will remain organic," she said. "They are new, separate offerings. These are our first natural offerings in the marketplace, and Horizon always tries to provide great-tasting products for moms and for families. We’ve always been focused on innovation that satisfies a broader range of consumer needs."

Little Blends is a yogurt with a fruit and vegetable purée that comes in combinations of banana and sweet potato, strawberry and carrot, and apple and butternut squash. The recommended retail price is $3.39 to $3.59 for a four-pack of 4-ounce cups. Milk Breakers, which will be available in vanilla and chocolate and are fortified with added protein, are geared to 4 to 10 year olds. The suggested retail price is $3.79 for a six-pack of 6-ounce servings.

Being natural but not organic means the company can sell the new products at a lower price and tap into a larger market. As the gap between conventional and organic widens and shoppers look to save money during recessionary times, companies are looking for ways to compete, ride the trends and offer value-priced products, said Michelle Barry, a retail and cultural trends expert and senior vice president of The Hartman Group, a research and consulting firm.

"I suspect it may be unusual, but [Horizon Organic] may be on the leading edge of companies that are struggling and in competition with other companies," she said. "I’m not surprised they’ve done this. Their competition and consumers have been heading in this direction for some time.

"There may be some core brand loyalists that will be upset, but at the same time, they could be expanding to a much dense population and the strategy may expand their reach into more households," Barry said.

But the move away from purely organic is a trend that doesn’t settle particularly well with Matthew McLean, vice president of the Organic Trade Association and owner of Uncle Matt’s Organic in Clermont, Fla.

Still, McLean said he understands that now is a difficult time for companies and they have to do what it takes to stay in business.

"As an advocate of organic, I hope organic holds firm and continues to grow, but each company has its own mission and vision," he said. "Anybody in this economy, in any industry, is looking at ways to continue to grow the company and keep the light bill paid. I can only hope the organic consumer will continue to support organic, based on the quality of the products we put out. But I hope the companies stay true to organic, as well."