08.12.2006 15:07:00
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Dean Foods Investing $1 Million in Akron Distribution Center; Reiter/Akron Production Facility to Cease Production
AKRON, Ohio, Dec. 8 /PRNewswire-FirstCall/ -- Dean Foods Company announced today that it plans to invest $1 million to build a new distribution facility by the Fall of 2007 and to cease operations by Feb. 8, 2007, at its plant located at 1055 Wooster Road N., Barberton, Ohio, due to excess capacity in the region.
New Distribution Center
The new distribution facility will be state of the art and will employ approximately 45 drivers and 8 to 15 warehouse positions. In addition, Reiter's existing sales staff will remain in place. "We will stay an integral part of the community," said John Gillam, Group Vice President. "We have been part of this area for over 70 years and we don't plan to leave any time soon."
The Reiter Brand
Reiter has been part of the local community since 1933. Ralph Reiter founded Reiter Dairy on Sumner St. in Akron when milk sold for eight cents a quart in glass bottles.
Since then, Reiter Dairy has grown to be the leading milk brand in Ohio, and Dean Foods remains committed to maintaining Reiter's standing as Akron's favorite milk.
Reiter's innovations are many including the Flavor Tight bottle, which keeps light out and protects the milk's nutrients and fresh flavor.
The Reiter brand remains a solid asset to Dean Foods, and one that the Company plans to continue to grow with ongoing advertising, promotions and partnerships with local retailers.
The Reiter/Akron Plant Closing
Reiter-Akron is centrally located between three other sister plants in Springfield, Ohio; Erie, Pa; and Sharpsville, Pa. The Akron locations as well as these three affiliated plants all have excess capacity. As a result, the company chose to close the Akron production operation and shift production. Approximately 50 percent of the volume will be transferred to the two Pennsylvania operations and 50 percent to Springfield, Ohio. Workers who will be most affected will be employees -- about 165 -- who do not have Commercial Drivers Licenses which would qualify them for driver positions at the new distribution center.
"This was a hard decision. Our company looked at every option possible before we came to this conclusion," said Craig McCutcheon, General Manager for Reiter. "Unfortunately, our production volume has been on a steady decline resulting in excess capacity across all four plants in the region and we do not see an opportunity to increase volume."
Added McCutcheon, "While I know this is difficult news for our employees, I am pleased that we will be able to secure some jobs at our new distribution center. We plan to continue to be a vital part of the Akron community."
Customers will continue to receive quality dairy products and the same service during the transition.
The Company employs 242 employees at the Akron facility. About Dean Foods
Dean Foods Company is one of the leading food and beverage companies in the United States. Its Dairy Group division is the largest processor and distributor of milk and other dairy products in the country, with products sold under more than 50 familiar local and regional brands and a wide array of private labels. The Company's WhiteWave Foods subsidiary markets and sells a variety of well-known dairy and dairy-related products, such as Silk(R) soymilk, Horizon Organic(R) milk and other dairy products and International Delight(R) coffee creamers. WhiteWave Foods' Rachel's Organic(R) brand is the largest organic milk brand and second largest organic yogurt brand in the United Kingdom.
Contact: Marguerite Copel Vice President, Corporate Communications (214) 721-1273 Barry Sievert Senior Director, Investor Relations (214) 303-3437
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