Winn-Dixie selling two dairies to SMI

Winn-Dixie Stores Inc. plans to sell the two dairies it operates—one in Plant City FL and the second in Hammond LA—to Southeast Milk Inc. (SMI). Both facilities will remain in full production, and Winn-Dixie associates working in the plants will become employees of SMI at the close of the sale.

Peter Lynch, Winn-Dixie’s president, chief executive officer, and chairman of the board, said, "We have concluded that the sale of our dairies is in the company’s best interest as we continue to sharpen our focus on the retail operation of our business. We are pleased that SMI recognizes the value of our dairies and the associates who work there, and we look forward to a successful partnership."

"Our purchase of these dairies from Winn-Dixie provides a wonderful opportunity for our family-owned dairy farmers to better serve consumers throughout the southeastern United States," said Calvin Covington, the CEO of SMI. "Southeast Milk remains committed to providing fresh, locally produced milk to consumers. The addition of these two dairies will help us to do that even more efficiently."

Upon completion of this transaction, Winn-Dixie will operate one manufacturing plant: its private-label Chek Cola plant in Fitzgerald GA.