Kroger and Walmart begin bottling their own milk at lower prices, worrying dairy farmers

Grocery retailers like Kroger, Walmart and Albertsons, have started their own milk-bottling plants in a quest to cut costs through vertical integration. However, companies entering the bottling industry are placing a threat to other large-scale operators, The Wall Street Journal reports. Both Dean Foods and Borden Dairy, two of the country’s largest producers were sold this year after filing for bankruptcy. Additionally, dairy alternatives, water, and juice have decreased the demand for cow’s milk. In the past forty years, annual per capita milk consumption has dropped by 40 percent.