2020 December Board Book

Processor Relations Update

Lactalis Acquires Knudsen/Breakstones from Kraft-Heinz

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California dairy processing continues to exchange ownership and consolidate. Lactalis Group has agreed to acquire Kraft-Heinz’ dairy businesses including their natural cheese business, brands Kraft, Cracker Barrel, Polly-O, Athenos, Breakstone’s and Knudsen. They will also acquire the Cheez Whiz and Velveeta brands internationally. The acquisition agreement is valued at $3.2B USD, expected to close in the first half of 2021. Kraft Heinz will also sell their production facilities in Tulare, CA, Walton, NY and Wausau, WI along with a distribution center in Weyauwega, WI. Currently the Knudsen Cottage Cheese and Sour Cream items in California and Nevada carry the Real CA Milk Seal, as well as the Breakstone’s Cottage Doubles items nation- wide. The Real CA Milk Seal is also on one Cracker Barrel cheese item nationally. Earlier this year, Lactalis completed their acquisition of Karoun Dairies, Inc., Turlock CA.

Producers Dairy to Acquire Umpqua Dairy, Umpqua, WA

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In our last Board Page update we told you about Dairy Farmers of America’s acquisition of 44 Dean Foods plants for $433 million, completed in June making DFA the largest milk processing company in the U.S. Producers Dairy, now the largest milk processor regionally, owns the Berkeley Farms brand name, the former Dean Model Dairy in Nevada and the former SSI Fairfield, CA milk plant. The former Berkeley Farms Hayward, CA plant was closed. The latest acquisition by Producers dairy is Umpqua Dairy, located in Umpqua, WA. Umpqua is a third-generation dairy processor making ice cream, cottage cheese and milk. They currently supply WinCo and Safeway NorCal with Ice Cream.