Dean Foods Company has signed an expanded strategic alliance and licensing arrangement with farmer-owned food and agricultural cooperative Land O’Lakes, which will allow Dean Foods to use the Land O’Lakes brand name on a range of value- added fluid milk and cultured dairy products, as well as on all basic fluid dairy products, across the US.


In mid-August 2002, Dean Foods, through its Morningstar Foods subsidiary, will launch Land O’Lakes Dairy Ease lactose-free milk, the first new product resulting from the expanded relationship.


The new agreement is an evolution of a two year-old joint venture arrangement (Dairy Marketing Alliance-DMA) between the two companies designed to leverage the combined strength of Dean Foods position in the dairy case with the heritage of the Land O’Lakes brand. The new arrangement grants perpetual, royalty-bearing national licensing rights of the brand directly to Dean Foods and includes additional value-added products such as fortified nutritional milks, aseptic products, infant formula and soy beverages. DMA will be dissolved when the new licensing agreement takes effect on 31 July 2002.


“We are extremely enthusiastic about the potential of this expanded relationship,” said Gregg Engles, Dean Foods chairman and CEO: “Our Morningstar Foods division, with its fully-integrated marketing resources, offers an ideal platform for launching Land O’Lakes Dairy Ease.”


Jack Gherty, Land O’Lakes President and CEO, added: “The most obvious benefit for [us] is that Dean Foods’ national, brand-based product development and marketing expertise will be focused on the Land O’Lakes brand.”

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