Dean Foods Co (NYSE:DF) ended the last session with a minor loss of 0.90% only but more than the actual loss, the damage to the structure was more significant from the technical perspective. The volume of 1.2 million for the day was lower than the daily average of 1.6 million, reflecting the corrective nature of the price action. From the larger perspective, the stock has been trading in a contracting range for the last few months and the volatility has been collapsing too. The contraction of both price and volatility may continue for a few days more and in that case, the decline can get much deeper.
Dean Foods Co (NYSE:DF) operating performance have witnessed improvement in the last three quarters, mainly due to solid execution and price realization in an easing commodity scenario. Despite a modest recovery in the United States economy, investors are skeptical following global growth concerns haunting the world markets lately.
The pressure is also seen on numerous consumer staple companies, which are still facing continued pressure amidst foreign exchange headwinds, declining unit volumes and limited consumer spending. In such a scenario, there is a need to look for quality consumer staple stocks that can prove to be profitable even when the broader market gets volatile.
The change in management
Dean Foods engaged Ralph Scozzafava as EVP and COO, effective October 1, 2015. In his new role, Mr. Scozzafava will oversee the Commercial functions of R&D, Sales and Marketing along with the new segment of Operations and Procurement and Logistics. He will report directly to Dean’s CEO Gregg Tanner.
Expressing his views on the new role, Scozzafava said that he has enjoyed working in the dairy industry and he is thrilled to commence this new career phase with Dean. He appreciates the company’s team and expects to achieve new milestones working together. The release of DairyPure® in 2015 marks one instance of how he thinks they are revolutionizing the dairy industry.
The highlights
Prior to this, Scozzafava served as EVP and CCO with Dean Foods. He has over thirty years of extensive experience in grocery and consumer goods industry. He held numerous general management, marketing and sales positions with remarkable track record of leadership and growth.
Before joining Dean, Scozzafava served as Chief Executive of Furniture Brands International where he achieved improved operating results and established strong organizational capabilities. The management said that Scozzafava’s experience as CCO will serve as a great launching platform as he takes the new role of CCO.
