Farm Fresh signs agreement to sell dairy operations

Oklahoma City-based Farm Fresh, Inc. announced it has signed a Definitive Agreement for Hiland Dairy Company L.L.C. to purchase substantially all of the assets and business associated with the Farm Fresh Dairy Division, including the fluid production facility in Chandler, Oklahoma. Farm Fresh, Inc. expects to complete the transaction on or about May 1, 2001. The amount of the sale was not disclosed.
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The sale of the dairy division business will not directly impact the Lawton-based bakery division of Farm Fresh. The company plans to continue ownership and operation of the bakery division as a separate business entity, licensing the Farm Fresh name from Hiland Dairy Company LLC for branding and marketing purposes.

Founded in 1974, and employing over 500 people, Farm Fresh produces and markets milk, ice cream, cultured dairy products, water, juices and bakery products to a variety of trade channels including; supermarkets, convenience stores, schools, military bases, restaurants and health care facilities in Arkansas, Kansas, Missouri, Oklahoma and Texas.

The state-of-the-art dairy processing facility in Chandler, Oklahoma is one of the newest plants in the United States and a national model. The plant employs more than 300 people dedicated to producing some of the finest dairy products on the market today. Milk, cottage cheese, yogurts, ice cream, and a variety of beverages are just a few of the product categories produced.

Hiland Dairy Foods Company L.L.C., headquartered in Springfield, Missouri, began operations in 1938. They currently employ over 1,000 people who manufacture and sell a full line of dairy products including fluid milk, ice cream, butter, yogurt, cottage cheese, dips, sour cream, juice, bottled water, and drinks.

In 1955, Hiland became a member of the Quality Chekd Association, which is the largest international cooperative of dairy processing companies of its kind. Along with the Hiland label, the red and blue trademark for Quality Chekd offers a second assurance for the customer that they are receiving the best possible freshness, taste, and quality of product.

Hiland currently has five manufacturing plants located in Wichita, Kansas; Fayetteville, Arkansas; Ft. Smith, Arkansas; Norman, Oklahoma; and their headquarters in Springfield, Missouri. In addition to the manufacturing plants, Hiland has twenty-six distribution sites located over a six-state area including Arkansas, Oklahoma, Missouri, Kansas, Colorado, and Texas.

The Farm Fresh Bakery in Lawton, Oklahoma employs 100 people and produces a wide variety of quality-baked goods including breads, rolls and buns. The Long Company, a Chicago-based consultant to the wholesale baking and food industries since 1900, recently named it an international ``Ten Best''. The bakery competed in a year-long contest among 80 bakeries in the United States, Canada and South America. In addition, Farm Fresh' white sandwich bread was ranked #1 in 2000 among bakeries operating across the United States in monthly competitions conducted by the Long Company.

Source: Farm Fresh, Inc.