Dean Foods to Increase Investments in Horizon

"Dean Foods Co., the biggest U.S. milk processor, said first-quarter profit rose 21 percent on higher prices and improved sales of organic products. The shares plunged the most since 2004 after Dean predicted a glut of organic milk.

Net income was $63.8 million, or 47 cents a share, compared with $52.8 million, or 37 cents, a year earlier, Dallas-based Dean Foods said today in a statement. Sales rose 4.8 percent to $2.63 billion.

Chief Executive Officer Gregg Engles said organic milk output may surge 40 percent this year, creating ``a wall'' of supplies that will prompt rivals to try ``to stimulate demand through lower prices.'' Dean Foods, the biggest organic milk producer in the U.S., will counter with increased investment in Horizon Organic, its most profitable brand, Engles said."

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