Borden Dairy

Borden Dairy Company is an American dairy processor and distributor headquartered in Dallas, Texas.[3] The company was founded in 1857 by Gail Borden.[4]

Borden Dairy Company
TypePrivate
IndustryDairy
Founded1857;[1] Dallas, Texas
Headquarters
Dallas, Texas
,
United States
Key people
Tony Sarsam (CEO)
ProductsMilk, cream, buttermilk, dips, sour cream, cottage cheese, juices, tea, eggnog
RevenueUS$ 1.2 billion [2]
OwnerCapital Peak Partners
Websitewww.bordendairy.com

History

Milk Products, LLC licenses the Borden name and Elsie the Cow trademark from Borden, Inc.'s successor company, Hexion Specialty Chemicals.[5]

National Dairy was formed in 2001 when a group of investors led by Dairy Farmers of America bought Crowley Foods and Marigold Foods (later renamed Kemps).[6] Later that year, National Dairy acquired 11 plants divested by Suiza Foods as part of its merger with Dean Foods.[7] National Dairy acquired Alabama's Dairy Fresh and Colorado's Sinton Dairy in 2003.[8][9] HP Hood acquired Crowley and Kemps from National Dairy in 2004.[10]

In 2009, Grupo Lala of Mexico acquired National Dairy from DFA.[11] Also in 2009, Lala acquired Farmland Dairies.[12]

In 2010, National Dairy sold Utah's Cream O' Weber to Darigold.[13]

In 2011, Laguna Dairy, consisting of Lala's U.S. operations, was separated from Lala in preparation for an IPO.[14]

In 2013, Borden was spun-off and became a subsidiary of a private company called Laguna Dairy, S.A. de C.V.[15] In 2017, ACON Investments became the majority owner of the Borden dairy business.[16] Following the equity recapitalization, Laguna Dairy remains a substantial equity holder in Borden.

Tony Sarsam was named chief executive officer of Borden Dairy Company in February 2018.[17]

Borden Milk Products' items are available in the following U.S. states: Alabama, Arkansas, Colorado, Florida, Georgia, Kentucky, Louisiana, Mississippi, Missouri, Ohio, Tennessee and Texas.[18] The Borden Milk Products has been around for over 150 years, and is known for its processing and distribution of dairy products produced in regionally located facilities. In Ohio, Borden also goes under the Dairymens label.[19]

On January 5, 2020, Borden Dairy Company filed for bankruptcy. "Despite our numerous achievements during the past 18 months, the company continues to be impacted by the rising cost of raw milk and market challenges facing the dairy industry," said CEO Tony Sarsam in a statement. Borden's filing says the company plans to stay in business during the bankruptcy process.[20]

Elsie the Cow

Elsie the Cow is Borden Dairy Company's spokescow that is used for the label on the products. Elsie was first introduced in 1936, appearing as one of four cartoon cows (with Mrs. Blossom, Bessie and Clara) in a series of advertisements that ran in medical journals.[21] Elsie was created by a team that was led by advertising marketer David William Reid.[22] In 1940, Reid also created for Elsie a fictional cartoon mate, Elmer the Bull, who was lent to Borden's then-chemical division as the mascot for Elmer's Glue. The pair was given calves Beulah and Beauregard in 1948, and twins Larabee and Lobelia in 1957.[23]

In 2000, Advertising Age recognized Elsie the Cow as one of the top 10 advertising icons of all time.[24]

Advertising

Selena Gomez was a spokesperson for Borden Milk and is featured in the campaign's print and television ads. When she was the spokesperson, she was also the star of the show Wizards of Waverly Place.[25]

Products

Borden produces and sells the following products of milk:

  • Vitamin D
  • 2% Reduced Fat
  • 1% Lowfat
  • Fat Free Skim
  • Dutch Chocolate
  • Dutch Chocolate 1%
  • Lite Line
  • High Protein[26]

Borden produces and sells additional products in the following categories:[27]

  • Milk
  • Cream
  • Buttermilk
  • Dips & Sour Cream
  • Juices
  • Teas
  • Flavored Drinks

Distribution

Borden products can be located in the states of Alabama, Colorado, Florida, Louisiana, Mississippi, Missouri, Oklahoma, South Carolina, Texas, Tennessee and Ohio. Within these states, these products are sold in the stores and marts that mainly include Cain's, Calhoun Foods, Food World, Fresh Market, Greer's, Kmart, Kroger, Magnolia Super Foods, Pic-N-Sav, Piggly Wiggly, Marcs, Aldi, CVS, Dave's Supermarkets, Publix Supermarkets, Rainbow Foods, Rite Aid, Walgreens, Walmart and Winn Dixie.[28]

Borden Dairy operates 12 plants in the Midwest, Southern, and Southeastern regions of the U.S. and nearly 100 distribution centers.

Bankruptcy

On January 5, 2020, Borden Dairy Company and sixteen affiliated companies filed Chapter 11 bankruptcy in the United States District Court for the District of Delaware[29] "citing declining sales".[4] In his affidavit, Jason Monaco, the company's CFO, mentions that the company intends to reorganize and not liquidate its operations. He describes a difficult environment for milk producers that includes decreasing demand for milk, increased competition with non-dairy alternatives,[30] the growth of discount grocery retailers, and the growth of private label alternatives.[31]

References
  1. https://www.bloomberg.com/opinion/articles/2020-01-29/borden-dairy-bankruptcy-filing-is-reminder-of-its-big-milk-role
  2. www.bizjournals.com https://www.bizjournals.com/dallas/news/2018/06/20/borden-dairy-tony-sarsam.html. Retrieved 2020-04-27. Missing or empty |title= (help)
  3. Business, Chris Isidore, CNN. "One of America's oldest and largest milk producers files for bankruptcy". CNN. Retrieved 2020-12-04.
  4. "If You Drink Milk, Thank Big Government". Bloomberg.com. 2020-01-29. Retrieved 2020-12-04.
  5. "Elsie Borden." Trademark Nos. 77034096; 77104776; 76591578; 3271334. United States Patent and Trademark Office. July 31, 2007.
  6. "Marigold Foods, Crowley Foods sold | Dairy Herd Management". Retrieved 2018-07-22.
  7. "Dean Foods - Suiza Foods and Dean Foods Complete Merger". Retrieved 2018-07-22.
  8. Amy, Jeff. "Dairy Fresh to close Prichard, Ala., milk plant". AL.com. Retrieved 2018-07-22.
  9. "National Dairy Buys Sinton". Retrieved 2018-07-22.
  10. "HP Hood Acquires Crowley and Kemps". Retrieved 2018-07-22.
  11. "GRUPO LALA Purchases National Dairy from DFA | Dairy Farmers of America". Retrieved 2018-07-22.
  12. "Lala acquires Farmland Dairies". Retrieved 2018-07-22.
  13. "Cream O' Weber sold to Darigold Inc., financial terms not disclosed | Local News Story | Real Estate News Utah". Retrieved 2018-07-22.
  14. "Got IPO? Mexican dairy looks to go public". Financial Times. 2013-09-23. Retrieved 2018-07-22.
  15. "Investment firm acquires Borden Dairy". Retrieved 2018-12-03.
  16. dairyreporter.com. "Borden Dairy taken over by ACON investment company". dairyreporter.com. Retrieved 2018-07-22.
  17. "Tony Sarsam to lead Borden Dairy". Retrieved 2018-12-03.
  18. "Borden Dairy: Where To Buy". bordendairy.com. 2012. Retrieved May 20, 2012.
  19. "ABOUT BORDEN DAIRY COMPANY" (PDF). Borden Dairy Press Kit. Archived from the original (PDF) on 1 August 2014. Retrieved 2 June 2013.
  20. Isidore, Chris. "One of America's oldest and largest milk producers files for bankruptcy". CNN. Retrieved 2020-01-06.
  21. "Elsie". Retrieved 2018-12-03.
  22. "David Reid -- creator of Elsie the Cow". SFGate. 2003-12-19. Retrieved 2018-12-03.
  23. "History - Borden Dairy". Borden Dairy. Retrieved 2018-12-03.
  24. "About Elsie the Cow" (PDF). Borden Dairy Press Kit. Archived from the original (PDF) on 1 August 2014. Retrieved 2 June 2013.
  25. "Borden Gives the Dairy Case a Fresh Look". BLOOMBERG. Retrieved 2 June 2013.
  26. "Pour Your Kid a Smile". Borden Dairy. Retrieved 2 June 2013.
  27. "Products - Borden Dairy". Borden Dairy. Retrieved 2018-12-03.
  28. "WHERE TO BUY". Borden Dairy. Retrieved 2 June 2013.
  29. Biscotti, Louis. "Why Borden Dairy's Bankruptcy Filing Might Be A Glass-Half-Full Scenario". Forbes. Retrieved 2020-12-04.
  30. "Borden Becomes Second Big U.S. Milk Producer to File for Bankruptcy". Bloomberg.com. 2020-01-06. Retrieved 2020-12-04.
  31. "Borden becomes second big US milk producer to file for bankruptcy". MSN.com. Retrieved 2020-05-10.
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