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Companies like the Hain Celestial Group Inc. have been performing well recently thanks to increasing demand for organic and soy products thanks to growing awareness about their health benefits. The sector has still faced challenges; however, as the grocery sector became highly competitive thanks to large amounts of consolidation during the recession, forcing companies to compete for consumers through promotions and lower prices. Companies struggled to gain any foothold to raise prices after consumers became accustomed to lower price points during the recession and grocers used discounted dairy products to drive traffic. Get instant analyses of Dean Foods Co. and The Hain Celestial Group Inc. from live, real-time experts standing by at http://www.shinesroomonline.com/products-subscription.php?subscription=freetrial. There is no commitment to join.
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This was dour news as companies watched their margins crimp on higher commodity costs. This could be one of the reasons that Dean Foods Co. has ultimately had to announce that it will divest part of its dairy business in an anti-trust settlement with the Department of Justice as farmers argued that the company was using its strong position in the market to fix pricing. Dean Foods Co. report is accessible for free by registering today at http://shinesroomonline.com/reports/May0311DeanFoodsCo.(DF)030511.php.
The good news for the sector is that the retail climate is improving. Customers have begun returning to branded dairy products now that the economy has begun to improve and grocers are no longer relying so heavily on discounts in the dairy aisle to drive traffic, a practice that had been significantly impacting revenues. The pricing environment should continue to become more positive as long as the economy and unemployment stay headed in the right direction. The Hain Celestial Group Inc. report is accessible for free by registering today at http://shinesroomonline.com/reports/May0311TheHainCelestialGroupInc.(HAIN)030511.php.
The two Organic Food Distribution stocks research reports are available for free by signing up now on www.shinesroomonline.com.
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