Thursday, August 9, 2012

Got Milk? Spinoff Shows Lure of Organic for Investors



 Selling milk is a brutal, low-growth business. Unless you're selling organic.

Shares in Dean Foods Inc. rose 41% Wednesday after the company detailed long-awaited plans to spin off the largest U.S. dairy producer's WhiteWave-Alpro business, which includes the Horizon Organic dairy brand and higher-margin Silk soy products, WSJ reports.

It was Dean's highest-closing price in two years, and a sign of deep shifts in the marketplace, where consumers are willing to pay much higher prices for products that they perceive to be more healthy.  The profit margins on soy milk, for instance, well outpace the margins for both standard and organic cow's .....


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