Dean Foods has partnered with an independent farmer cooperative CROPP to set up a joint venture to strengthen Organic Valley milk brand.
Through Dean Foods' processing plants and refrigerated direct store delivery (DSD) distribution system, the strategic joint venture will supply organic milk to retailers.
The 50/50 joint venture is expected to serve as a strategic growth platform for both companies.
Under the new partnership, Dean Foods will offer processing services and distribution through its extensive refrigerated distribution network.
On the other hand, Organic Valley will provide a select portfolio of recognized brands and products, marketing expertise, and access to an organic milk supply from the cooperative.
Dean Foods CEO Gregg Tanner said: "Adding Organic Valley to the current lineup of Dean Foods branded dairy products enables Dean Foods to offer retail customers the largest and most comprehensive dairy offering across multiple segments with national brands that consumers know and trust.
“It also allows us to further leverage our manufacturing and distribution network.”
Both Dean Foods and Organic Valley will leverage their sales expertise for the distribution of products.
The joint venture expects to commence processing and shipping Organic Valley products in mid-to-late 2017.
While Dean Foods has extensive experience in channels such as large format, dollar store and C-store, Organic Valley possesses expertise in the natural channel, emerging markets and specialty distributors.
Organic Valley CEO George Siemon said: "This partnership reinforces Organic Valley's mission to support more organic farmers and grow our business.”
In September, Organic Valley introduced convenient six-ounce Grassmilk Yogurt Cups in four varieties, including strawberry, wild blueberry, plain and vanilla.