When Schools Take Snow Days, Who Gets Hurt? Milk Companies

There are effects of snow days that are obvious, like parents scrambling for childcare and the need to make up days later in the year. One effect that isn’t so obvious is the effect that schools shutting down might have on dairy companies. Yes, those little milk cartons add up.

This came to the attention of reporters as Dean Foods reported its quarterly earnings. Recent wintery weather nationwide has affected the company’s sales, since schools and other institutions are a large part of the company’s sales. Americans are consuming less cow’s milk overall, and not putting little cartons in kids’ hands at lunchtime for a few days in different regions has a real effect on the company’s bottom line.

Dean Foods is crying over all of that spilled business, since they lost a big client last year: Walmart. Their sales should straighten back out if schools have to make up their snow days.

When Snow Closes Schools, Milk Sales Take a Spill [Bloomberg Businessweek]