Dean Foods focuses on “efficient pricing mechanisms” to battle rising input costsPosted: May 11, 2011
Dean Foods (DF) is yet one more company demonstrating confidence in its ability to wield pricing power. DF reported earnings Tuesday that showed weak pricing in milk but a strong focus in raising prices to battle rising input costs (emphasis mine):
“…First, we have stepped up our agenda to reduce costs and improve profitability. Second, because input cost volatility is here to stay, we are focused on pricing to offset inflation through efficient pricing mechanisms. We are working hard to maintain, and where necessary, improve our pricing tools…”
I liked how the earnings announcement avoided direct mention of raising the prices of non-milk products.
The market liked the announcement too. The stock soared 11.5% on the day.