Justice Department Files Antitrust Lawsuit Against Dean Foods

WASHINGTON — The U.S. Department of Justice last week filed a civil antitrust lawsuit against Dean Foods Company, challenging its April 2009 acquisition of Foremost Farms USA’s Consumer Products Division.

The department said that the merger eliminates substantial competition between the two companies in the sale of milk to schools, grocery stores, convenience stores and other retailers in Illinois, Michigan and Wisconsin.

The Department of Justice’s Antitrust Division, along with state attorneys general from Illinois, Michigan and Wisconsin, filed in U.S. District Court in Milwaukee, seeking to require Dean Foods to sell the dairy processing plants it acquired from Foremost Farms.

“The purpose of the department’s lawsuit is to restore competition so that schools, grocery stores and other retailers in Illinois, Michigan and Wisconsin, will pay lower prices for their milk,” said Christine Varney, assistant attorney general in charge of the Department of Justice’s Antitrust Division.

The department’s lawsuit not only seeks to undo the 2009 deal but also requires Dean Foods to notify the department at least 30 days prior to any future acquisition involving a milk processing operation.

Dean Foods announced in a press release that it will “defend itself vigorously against the complaint,” believing its acquisition of the processing plants is fully compliant with antitrust laws.

“The company believes that, from the time of the acquisition almost a year ago, this transaction has benefited Wisconsin dairy farmers by providing a stable and growing outlet for their milk. In addition, the transaction already has produced important cost savings that will benefit customers and spur competition in and around Wisconsin,” stated the press release.

Sources: U.S. Department of Justice and Dean Foods