Dean Foods president leaves company

AP News
Posted: Mar 01, 2011 5:20 PM
Dean Foods president leaves company

Dean Foods Co. announced Tuesday that Joseph Scalzo, one of its top executives, has left the company as part of a reorganization of its top executives.

Dean Foods said it will not name a replacement and its CEO, Gregg Engles, will take over Scalzo's duties.

The company said Scalzo left Friday but did not say why it waited several days before announcing his departure.

The company, the nation's largest dairy company, is facing difficult times as it struggles with higher costs for raw milk and other key commodities such as grain used to feed cows.

Dean Foods reported last month that it swung to a fourth-quarter loss from a profit last year because of hefty charges. Still, the company's adjusted results topped expectations and the company said at the time that it saw signs of stabilization ahead.

However, Dean Foods said Tuesday that it needed a new executive structure so it can act more decisively and quickly, while keeping a tight rein on costs.

That meant trimming its executive staff. Scalzo, 52, joined Dean Foods in 2005 as president and CEO of its WhiteWave Foods division. He was promoted to chief operating officer of Dean Foods in 2009.

Shares of Dean Foods, based in Dallas, fell 36 cents to close at $10.20 and slipped a penny in after-hours trading. Shares have traded between $7.13 and $17 in the past 52 weeks.