USA – Dairy product processing and distributing giant Dean Foods is to end its manufacturing relationship with Nestle.

The company will stop manufacturing for Nestle because its coffee creamers and chocolate milk products compete directly with Dean’s own International Delight and Hershey’s chocolate milk products.

The news was announced in a conference call made by Dean Foods, in which it discussed the company’s recent merger with Suiza and set out its plans for the coming year.

In the announcement, Dean Foods also said it expects cash earnings per share for 2002 to be between $5.20 and $5.25 (4.59 – 4.63 euros).

Commenting on Dean Foods’ recent merger with Suiza, chief executive officer Gregg Engles said: “We are enthusiastic about the future of the new company. We believe that our target of and 8 to 10% earnings growth rate, combined with a continuing commitment to invest in our brands, new products and technology, will lead to increased value for our shareholders.”

Dean Foods completed its merger with Suiza in December, creating a company worth $10 billion (8.8 billion euros). It is the USA’s biggest processor and distributor of fresh milk and dairy products.