Eric Beringause named CEO of Dean Foods; brings a Record of Transformation

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Eric Beringause is the new CEO and President of  Dean Foods, the nation’s largest processor and distributor of fresh fluid milk and dairy case products.  He replaces Ralph Scozzafava, who has stepped down.  Beringause’s tenure began on July 29, 2019.

Mr. Beringause brings over 30 years of experience in the dairy, consumer products, and food processing industries to his new position.  Most recently, he was the CEO of Gehl Foods, the nation’s largest processor of nacho cheese.  Through his career, he has worked for a variety of companies such as Nestle, ConAgra, Alcoa, and Pillsbury.  His work portfolio includes private-label and branded products.

As the nation’s largest processor of fluid milk, the performance of Dean Foods in turns affects the fortunes of tens of thousands of dairy farms and regional farm economies across the United States.

It is no secret that the dairy industry itself, as well as Dean Foods, has seen its fair share of difficulties in the past two years;  Mr. Beringause faces daunting challenges in turning the company around.  Jim Turner, non-executive chairman of the Dean Foods Board, expresses confidence Beringause is the person for the job in a news release: “He has a long track record of creating value in dairy and consumer products companies, as well as a unique combination of turnaround and operational expertise.”

Upon the news of the CEO change late on Friday afternoon, July 26, Dean Foods stock rose in off-market trading over the weekend, rolled a bit during the day on Monday, July 29, and at the close of business, closed up 2 cents/share from Friday afternoon’s closing value of $1.25.  On Tuesday, July 30th, the stock had climbed again to $1.36 at closing.

Following is the original news release, along with some additional public information about Mr. Beringause:

The original news release from PR Newswire:

DALLAS, July 26, 2019 /PRNewswire/ — Dean Foods Company (DF) today announced that Eric Beringause has been appointed President and Chief Executive Officer and a member of the Dean Foods Board of Directors, effective July 29, 2019. Beringause succeeds Ralph Scozzafava, who has stepped down as CEO and resigned from his position on the Board.

Beringause brings to Dean Foods more than 30 years of transformational leadership and operational experience at a broad range of blue-chip brands in the food, beverage and consumer products industries, including expertise in food processing and branded and contract manufacturing. Most recently, he served as CEO of Gehl Foods, LLC, a market-leading producer of dairy-based beverages and food products. Prior to that, he served as CEO of Advanced Refreshment LLC, one of the largest U.S. producers of private-label bottled water and water-based beverages, and as CEO of Sturm Foods, Inc., a leader in private-label food products, specialty food brands and contract manufacturing. Earlier in his career, Beringause held various business development, finance, and sales and marketing roles at Alcoa Consumer Products, Gerber Infant & Baby Products, ConAgra, Inc./Grist Mill, Nestle, Inc., Nabisco Brands and The Pillsbury Company.

“We believe Eric is the right leader to drive the transformation of the business as the Company continues to execute on its enterprise-wide cost productivity plan and its previously announced exploration of strategic alternatives,” said Jim Turner, Non-Executive Chairman of the Dean Foods Board. “He has a long track record of creating value in dairy and consumer products companies, as well as a unique combination of turnaround and operational expertise.”

“I am honored to join Dean Foods at this important juncture,” said Beringause. “Dean Foods is the nation’s largest dairy processor and a leader in the industry, and I am excited to work with the Board and management team to leverage our scale and substantial assets to realize the significant opportunities available to transform our company. My top priority will be to ensure we have the right footprint and strategies in place to drive sustainable growth and profitability for the benefit of our shareholders, employees, customers and other stakeholders.”

Turner continued, “On behalf of the entire Board, I want to thank Ralph for his service and contributions to Dean Foods over the past five years. We appreciate his dedication to the Company and we wish him all the best in the future.”

Upcoming Webcast of Second Quarter 2019 Earnings Conference Call
The Company will host a live webcast of its second quarter 2019 earnings conference call on Tuesday, August 6 at 9:00 a.m. Eastern Time. The webcast is expected to last approximately one hour and will be accessible by visiting http://www.deanfoods.com/our-company/investor-relations/ and by clicking “Webcasts.”

The webcast will be accessible on most operating systems and browsers. A webcast replay will be available for approximately 45 days following the event within the Investor Relations section of the Company’s website.

About Dean Foods:
Dean Foods is a leading food and beverage company and the largest processor and direct-to-store distributor of fresh fluid milk and other dairy and dairy case products in the United States. Headquartered in Dallas, Texas, the Dean Foods portfolio includes DairyPure®, the country’s first and largest fresh, national white milk brand, and TruMoo®, the leading national flavored milk brand, along with well-known regional dairy brands such as Alta Dena®, Berkeley Farms®, Country Fresh®, Dean’s®, Friendly’s®, Garelick Farms®, LAND O LAKES®* milk and cultured products, Lehigh Valley Dairy Farms®, Mayfield®, McArthur®, Meadow Gold®, Oak Farms®, PET®**, T.G. Lee®, Tuscan® and more. Dean Foods also has a joint venture with Organic Valley®, distributing fresh organic products to local retailers. In all, Dean Foods has more than 50 national, regional and local dairy brands as well as private labels. Dean Foods also makes and distributes ice cream, cultured products, juices, teas, and bottled water. Approximately 15,000 employees across the country work every day to make Dean Foods the most admired and trusted provider of wholesome, great-tasting dairy products at every occasion. For more information about Dean Foods and its brands, visit www.deanfoods.com.

*The LAND O LAKES brand is owned by Land O’Lakes, Inc. and is used by license.
**PET is a trademark of Eagle Family Foods Group LLC, under license.

CONTACT: Investor Relations/External Communications, Suzanne Rosenberg, +1 214-303-3438. Media please contact +1 214-721-7766 or media@deanfoods.com

 

Additional Background Information about Mr. Beringause:

Vassar:  Mr. Beringause serves on the Board of Trustees of Vassar College, from whom he received his undergraduate degree.  A biography can be read on Vassar’s website, or is posted here:

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Giving Back: Related to experiences and friendships which began with a summer job while at Vassar,  Mr. Beringause has been a huge supporter of an effort which builds up the Navajo nation, assists the Student Conservation Association, and involves telecommunications – all at the same time.   And he believes that teaching the ‘why’ is important.  Learn more in “That Vassar Serendipity – Three Alums Find a Common Cause,” a part of the Vassar “Stories” series.

Management Board of CP Kelco / a Division of Huber:  Mr. Beringause is a member of the Management Board of CP Kelco, a consumer products division of Huber, which processes .nature-based’ ingredients for the food industry.

 

From FoodDive – a perspective on the circumstances which led to this change:

Dean Foods Replaces CEO with Eric Beringause amid Continued Struggles; by Lilliana Byington for Food Dive.  Insights from this article’s author describe the company’s struggles, the challenges ahead, and Beringause’s record.

In recent years, opinions about Dean Foods and its future have been offered by every level of the dairy supply chain from dairy farmers to financial outlets to board rooms across the nation.  A change has occurred.  The entire dairy economy will benefit from a healthy and vibrant Dean Foods. We are hoping that Mr. Beringause is indeed, the leader with the skills to build a positive future – many dairy communities will be counting on it.

 

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Maury Cox: Dairy Advocate. Milk Leader. Friend.

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“It’s the people that make the difference, and there’s no better people than dairy farmers and their families.” 
This is how Maury Cox summarizes his perception of the people he’s served – mostly in Kentucky, but extended to the Eastern United States – during his tenure as Executive Director of the Kentucky Dairy Development Council, a position he’s held since May 31, 2009.
Cox was honored by his peers and colleagues for his service to the Dairy during the Awards Banquet of the Kentucky Dairy Partners Annual Meeting in Bowling Green, KY on February 26, 2019.
Cox had announced a retirement date of March 1st, but since the position has not been filled as of press time, he will be available for additional duties until the time a new Executive Director is named.
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Maury Cox was honored at the KY Dairy Partners to recognize his service as Executive Director of the Kentucky Dairy Development Council. He was presented with a signatory crock, and was delighted to receive a new fishing pole, presented by Tom Hastings.  In case you didn’t know, Maury is almost as passionate about fishing as he is dairy cows and dairy people!
His leadership at KDDC culminates a life-long career in the dairy industry.  He began as a dairy farmer, and later worked for Kentucky Artificial Breeders Association / Select Sires.  He was a founding member of KDDC in 2005, and became the Dairy Consultant Director in 2007.
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As Executive Director, Cox worked closely with and relied on the efforts of his current team of Area Dairy Consultants, who serve four regions across the state.  From left to right (above), they are Meredith Scales, Jennifer Hickerson, Maury Cox, Beth Jones Cox, and Dave Roberts.
On any one day, Maury could be speaking to a committee at the KY Legislature in the morning, visiting a farm in in the afternoon with his barn boots on, and ending the day by promoting milk at a ballpark.
Without a doubt, Maury led his state during the most challenging time of all in 2018 as 19 dairy producers lost their milk contracts and markets.  With grace, poise, and an almost 24-hour effort, Maury led the way to 11 producers eventually finding a home for their milk with either Scioto Milk Producers Cooperative of Ohio, and some with DFA.  As an eiplogue, some of those 11 survivors have since gone out of business as well.
Maury has collaborated with many affiliated organizations to advance the dairy industry in Kentucky, in the Southeast, and across the country. For a number of years, he, working with others, such as the Kentucky Department of Agriculture, organized bus tours and educational trips on a regular basis.
Maury has always appreciated the role an ‘outside perspective’ and exposure to new ideas can play in enhancing a dairy farm when new ideas are applied. The Kentucky Department of Agriculture has been one of his most valuable working partners through the years on these outside trips.  Additionally, he is considered a “Senior Statesman” of the southeast dairy industry.
He has made a point to build bridges with other state producer groups, respecting that there are differences from region to region which affect farmers in every area across the country.  When he learned something that made a difference to Kentucky, he tried every way he could to make that a reality in his home state.
A prime example is the implementation of the Market Industry Leader of Kentucky (MILK) program. With KDDC organizing a collaborative effort of co-ops and processors, the effort was designed to make strong improvements in Kentucky milk quality in order to remain competitive in today’s milk marketplace.
Over the years, this program has supported milk quality improvements, putting $8 Million dollars back into the Kentucky farm economy.  A longer term result is that the collective Kentucky dairy industry is generally more sustainable.
Communications of the KDDC also went to the ‘next level’ under Maury’s leadership.  The Kentucky Milk Matters newsletter is read across the southeast, and is considered an accurate source of current information.
As a regional policy leader, Maury played an instrumental role in the Southeast Dairy Coalition, an informal working group of grass-roots dairymen from several states who worked together to navigate the challenges of the 2009-11 Dairy Crisis, as well as influence the 2012 Farm Bill.
Sometimes as a leader, and sometimes in collaboration with others, he has been a part of many meetings concerning milk pricing and Federal Milk Market Order function, and has worked to effect change in that sector as much as possible.  Getting timely information to his producers has always been a priority.
As parting words, Maury offers this perspective on the future:
“As long as supply outpaces demand, over-order premiums in most markets will be non-existent. Premiums are where the profit is.  Until dairy farmers come together and decide they want something different, fewer and fewer will continue in business.”
Maury’s plans includes more time to recreate and travel with his wife, Sue, and their family, to devote more care to his mother, and of course, spending more time at any favorite fishing spot or watching a Kentucky Ballgame (basketball might be his favorite!)  It’s safe to say he’s as passionate about those things as dairy!
Maury is also a man of deep faith, and applies faith and prayer to every situation. He shows Christian grace in his everyday and his professional life, and his approach to some very difficult situations is a testament to faith in action.
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Maury reminisces with some folks he’s worked with through the years: Bob Klingenfus, a former President of KDDC, Warren Beeler, Executive Director of Governor’s Office of Agriculture Policy, KY Dept.of Agriculture, and Eunice Schlappi, Office of Ag Marketing, KY Dept. of Agriculture.
Robert Klingenfus, a former President of KDDC, says:   “The Kentucky Dairy Community has benefited greatly from Maury’s leadership.  His dedication to serve producers was unparalleled, and he has navigated challenging events with a calm, steady hand.  We can never thank him enough for his efforts.”
Bob continues:  “Maury has been a help to countless dairy farmers. On the surface we see Maury helping with Milk quality problems, division of water issues. But what he is really good at is what he calls facilitating.  He is a good listener and when you are done venting,  he will give a few suggestions and  the names of people that can help you with your problem.  He is careful not to tell you what to do, but facilitates  you with the ability to achieve what you are seeking.  Maury has become the go-to man if you need something; he seems to know everyone. If you need a barn, Maury knows who has built one recently, or sell or buy cows same thing, he put people together to solve problems.
“It has been an honor and privilege to serve you. I am a lucky and blessed guy,” were Maury’s closing words on the evening of the KY Dairy Partners banquet.

Here’s to you, Maury!  Those sentiments are a thousand times reciprocated!  We know we’ll be seeing you around!

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We have been blessed you chose to serve us.

A UT National Championship – Born of Corn, with TN Ag!

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A #FlashbackFriday – 20 year Anniversary post looking back at UT’s National Championship Win in the Fiesta Bowl on Jan. 4, 1999!  Ag was involved! 

[[ Note – this was originally published on 9 January 1999, in a column I contributed to the Kingsport Times-News. ]]

“Corn may not grow at all on Rocky Top, but it had a huge impact on the harvest of college football’s national championship bu a Big Orange combine!

Yup, in more ways than one, summer’s slim stalks with big ears mean that we vapid Volunteer fans can at last sigh with satisfaction that a crystal football will now adorn the University of Tennessee’s trophy case! Whoever would have thought that something as humble as a kernel-filled, cylindrical-shaped object born of the soil would give birth to the reality that Tennessee footballs now reigns as pigskin royalty?

This championship born of corn actually took root last January when those corn-fed Nebraska ‘Huskers shucked our fair Vols of all hope of a ’97 championship in the Jan. 1998 Orange Bowl, whenNebraska won 42-17.  Fulmer and staff, although disappointed, made the best of the situation and learned what proper nutrition and conditioning contributed to crossing the Championship line, and they worked harder.

And, as Tee Martin and Peerless Price and Al Wilson entered spring practice with a newfound determination, so farmers entered their fields to plant seeds of corn destined to help pay for a BCS National Championship game.

It took 160,000 acres of prime cropland to grow the specialized white corn which ended up as the primary sponsor of the ‘Tostitos’ Fiesta Bowl!

Since Frito-Lay needs over 300 million pounds of corn to fill America’s demand for Tostitos, these corn fields need to be as proficient at kicking out kernels as Jeff Hall is at kicking points between the uprights!  All told, Frito-Lay utilizes over 1 billion pounds of shelled corn each year to fill all of its corn snack sales!

Tostitos became the Fiesta Bowl sponsor in 1996, and thus began a corn farmer’s contribution to Phillip Fulmer’s tortilla shower on Monday evening!  [Jan. 4, 1998].

Although the corny side of Fiesta activities was courtesy of Illinois farmers, local agriculturists have played a major role in this year’s championship season as well.

Seeing the need for a stable, reliable supply of farm inputs, a team of Tennessee farm leaders had the foresight to form an organized system of stores over 50 years ago.  Now known as Tennessee Farmers Co-op, this agribusiness shifted its marketing scheme a couple of years ago, just as the Tennessee secondary adjusted to contain FSU’s Warrick, their lightning quick receiver.

Since Tennessee’s farming community now includes a large amount of part-time farmers and rural homeowners, the Co-op system saw the need for reaching a broad-based audience with ever-changing product lines.  And what better way to reach millions than through the Vol Network?!?!

Yes, for the past several years, your farm neighbors have helped bring you the familiar resonations of “It’s Football Time in Tennessee!”  Through TFC’s sponsorship of our beloved John Ward and Bill Anderson, football fanatics everywhere have benefitted from the dollars of farmers which brought every moment of the championship march to the radios of all true UT supporters!

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The Tennessee Beef Industry Council, a non-profit organization which educates the public about beef’s benefits in a healthy diet, is responsible for the “Beef, It’s What You Want!” commercials on the Vol Network.  These advertisements are funded through beef check-off funds, collected every time a farmer sells cattle in the state of Tennessee.

[[[ Note: In 2017, The Tennessee Beef Industry Council celebrated its 30th Anniversary as a Vol Network Sponsor, and they celebrate Beef Day every season  at Neyland stadium ]]]

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And who’s to say how beef’s protein contributed to the muscle power of linemen as they protected Tee Martin and sacked opposing quarterbacks?  Would there have been a National Championship without steaks and burgers?

As a farmer’s daughter, I first became a UT fan while riding with my dad in a combine.  John Ward and Bill Anderson kept me posted on the exploits of Dewey Warren and Curt Watson.

As a student at the University of Tennessee, I sat for many long hours in the stadium with John Majors at the helm.  I swung in the Upper Deck to the stadium-wide strains of “Hey Jude” as the Orange finally defeated the “the Bear.”  [Alabama Coach Bear Bryant]

John and Bill have been my connection to Neyland in the past few years as cows had to be milked at gametime, or harvest and crops or cattle had to be tended.

UT Football is almost as much as part of my heritage as agriculture, and my memories of each overlap and become intermingled until the turf of the stadium ripples back into the pasture grasses from which it evolved.

And on a cold January night when ice had to be broken on ponds so cattle could drink, the UT Volunteers were destined to bread through the ice and drink of the joys of a National Championship!

Farming was there – and farming will be there until the next time we hear again “It’s Football Time in Tennessee!”

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Another Ag / John Ward / Vol Network tie – not a part of the original column:  Dairy Farms in Tennessee were an early sponsor of the Vol Network, through an in-state dairy checkoff program.  John Ward was in his early days as a broadcaster, and was helping to figure out a way to help introduce Coach Doug Dickey in his first season as head coach.  Ward sold ads to the Tennessee “Milk People,”  A slogan “For the Lip that Lasts, Drink Milk!”   In Mr. Ward’s Tribute in June of 2018,  Coach Dickey spoke fondly about this relationship during the Celebration of Life.  A video of Dickey’s tribute is here.

And John Ward even did some ads for Milk himself.

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PS – Where has this column been hiding for 20 years?  Kind of ‘old-school filing’  (yet very effective!) with file pocket folders and Rubbermaid tubs!

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Here’s to hoping we’ll hear those Magic Words again in the near future!  Since Coach Jeremy Pruitt has said his favorite food is ‘corn’bread, maybe that’s an omen?!?!

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Michigan Spartan LLC: Major ‘Processing Campus’ to be built in Michigan

A News Digest about Michigan’s $510 Million Processing Complex: DFA, Glanbia, Select Milk, and Proliant are Partners

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On Thursday, August 9, 2018, Michigan announced a monumental project which will fill part of the void in worldwide dairy processing capacity.
Michigan Spartan LLC is the business entity developing a ‘world class dairy processing facility’  expected to process over 8 million pounds of milk a day when fully operating, said to be by September of 2020.  American Cheese is projected to be a primary product, with whey permeates, a by-product of cheese production used for food and feed applications, also a product offering.
The new facility is a partnership between Dairy Farmers of America (DFA),  Glanbia, Select Milk Producers, and Proliant Dairy Ingredients.  The venture is said to be similar to Southwest Cheese, a previously existing partnership of DFA, Glanbia, and Select Milk.
Michigan Milk Producers will also be a milk source for the facility.
The evolution of the project included a number of local and regional economic development and government agencies, with the Michigan Economic Development Corporation’s Michigan Strategic Fund board an integral player.  The Michigan Department of Agriculture was also involved.
The sheer magnitude of all the agencies and efforts involved in this monumental project offers many lessons to others considering dairy development efforts in any location.
The project is multi-national in scope, and involves worldwide dairy industry heavyweights.   Dairy Farmers of America is North America’s 2nd largest cooperative and 8th largest dairy company.  Select Milk Producers is North America’s 8th largest dairy cooperative according to Progressive Dairy, (6th largest on USDA’s Top 100 Ag Co-ops – last available, 2016 numbers) and 14th largest co-op on that composite  ranking.  Glanbia Nutritionals is North America’s 22nd largest dairy company, and a subsidiary of Glanbia PLC, based in Kilkenny Ireland. Proliant is based in Ankeny, Iowa.

Following is a digest compiled from media reports of today’s (August 9, 2018) from Michigan and other areas:

From the Detroit News:  “We really try to grow the value of the agriculture industry so that most of the commodities stay here in the state, have them processed here, keep the farmers here,” is a statement from  MEDC CEO Jeff Mason. The project is slated to receive $26.5 Million in Tax Abatements over 15 years. 

From the Lansing State Journal (makes one marvel at the effort put into project):  the project involved a number of state and local government agencies, included tax concessions on several levels, with these project parameters:
  • 146 acres in the site
  • Will process about 8 Million pounds of milk a day (mostly American style)
  • Will produce about 300 million pounds of cheese per year
  • Will operate  24/7, 365 days per year
  • Notes similarities to Southwest Cheese in New Mexico [another Glanbia / DFA / Select Milk joint venture]
  • Will use by-products from each layer of processing (whey from cheesemaking, then permeate from whey concentrated for dairy solids)
  • 259 jobs at the cheese plant
  • 38 jobs at the adjacent whey permeate plant

From Crain’s Detroit Business;  a business publication in the area:

  • Another $40 Million in Tax Incentives likely to come in the future may drive total investment from $510 to $550 Million
  • The project is part of Michigan’s Agriculture Processing Renaissance Zone initative, a program which assisted with another $58 million dairy processing facility (Foremost Cooperative) and a soybean processing facility earlier this year
  • “Adding this capacity to our ecosystem . . . is really going to bring stability to the market” – Peter Anastor, Division Director, Michigan Department of Agriculture

From The Charlotte Observer (an AP story)

  • Glanbia will oversee commercial, tecnical, and business operations
  • The project considered other sites in other locations

 

A worldwide milkshed suffering from a lack of modernized processing capacity should benefit from this project.

Note: Additional links and updates may be added in the future to this blog post.

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