Borden Dairy, the more than 150-year-old company that first began delivering milk in bottles and built one of the nation’s most recognized brands, has filed for bankruptcy, but this may be a case of a glass half full, rather than half empty, according to a commentary published by Forbes. The chapter 11 filing on Jan. 5 is a major development for the company, which comes nearly two months after Dean Foods filed for bankruptcy on Nov. 20. CEO Tony Sarsam said that it will be “business as usual” as Dallas-based Borden Dairy Co. reorganizes in an industry where an observer might think “Got Bankruptcy?” has joined “Got Milk?” Yes, per capita milk consumption is down. Americans consumed 197 pounds of fluid milk per capita in 2000, but that fell below 150 for the first time in 2018 at 146 pounds, according to the U.S. Department of Agriculture. Fluid beverage milk sales dropped to 47,672 million pounds in 2018 from 50,041 in 2015. Variations on milk are proliferating as soy, rice, almond, coconut and cashew or “milk-less milks” are chasing conventional milk. All of this means milk companies, no longer cash cows, are finding they must reinvent themselves. It’s probably about time. Borden is a smaller boat to turn around, employing 3,300 with 13 milk-processing plants and roughly 100 branches. Looking beyond Borden’s bankruptcy filing, there are signs the company has been charting a new course. Borden’s chapter 11 filing may have as much to do with debt burden as with dairy difficulties. “The rising cost of raw milk and market challenges facing the dairy industry … contributed to making our current level of debt unsustainable,” Sarsam said. Borden’s EBITDA is “positive and growing” and "this reorganization will strengthen our position for future prosperity,” he added. Companies relying on milk also need to re-vision their businesses if they’re going to win the battle for breakfast.
