Executive Summary – Winder Dairy
Winder Dairy, Inc. is a milk production and distribution business that began operations in April 1880.
The Company distributes over 100 products to 15,000+ Utah households twice each week and services
300 wholesale accounts.
Revenues were $13.8 million two years ago and $14.7 million last year.
company is headquartered in West Valley City, Utah and employs approximately 200 people.
The Company is currently family-owned and operated by the Winder and Liddle families.
ago, management discovered material irregularities in their financial reports spanning the previous 36
These irregularities were the result of a complicated scheme orchestrated by the Company’s
former treasurer, aimed at covering up the Company’s true financial position.
restatement resulted in an adverse swing in profitability of approximately $4 million (cumulatively over
the 3 years), and exposed substantial liabilities to vendors, lenders, and the taxing authorities, and put the
company in violation of its bank covenants.
The existing senior lender, with total exposure of $4.3
million, has initiated foreclosure proceedings.
Winder needs new investment capital to refinance several
existing lenders, to clean up the payables, and to provide adequate working capital for its growth.
Winder Dairy has been in the milk home delivery business since its inception in April 1880.
Winder delivers all kinds of milk products including all natural milk, cream, cheese, etc.
account for approximately 85% of revenues.
The Winder Bakery began operations in 1958, focusing on
all natural, preservative-free products that could be delivered along with customer milk orders.
accounts for approximately 7% of revenues.
Outside products account for approximately 8% of revenues.
In 1985, Winder purchased the home delivery business of Crème of Weber, which more than doubled the
number of customers served.
Over the last decade, revenue growth has come primarily from regional
expansion and the creation of a wholesale division.
Today, home delivery accounts for approximately
$11.2 million in revenue (73%) and wholesale accounts for approximately $4 million in revenue (26%).
Convenience and a great-tasting product are the primary selling points for the Winder home delivery
Winder’s focus on hormone-free, preservative-free products (known as “all natural”) also
appeals to customers.
By providing essential foodstuffs, Winder also sells the fact that customers need to
visit grocery stores less frequently.
Some customers claim this alone saves them more than 30% on their
Customers are typically upper middle income, two wage-earner families with children.
In addition to its home delivery business, Winder has developed a robust wholesale and private label