Oct 16, 2009 11:14 AM

Stater Bros Holdings Inc’s wholly owned subsidiary, Stater Bros Markets, has completed the sale of Santee Dairies to Dean Foods, America’s largest processor and distributor of milk and other dairy products.

Jack H Brown, chairman, president, and chief executive officer of Stater Bros Holdings, said, “The future growth of Santee Dairies products was limited because most potential customers are competing supermarket chains that already operate their own dairies. At Stater Bros., we try to do the ‘Right Thing . . . for the Right Reason.’ The right thing is to sell Santee Dairies to Dean Foods to ensure the continued growth of Santee. The right reason is to protect the future of the Santee ‘Family’ of Employees.

“This sale was clearly the best decision for the future growth of Santee Dairies,” said Brown. “Stater Bros Markets will continue to purchase Santee’s fine dairy products, including Stater Bros Milk, ValuTime Milk, Knudsen Milk, and Arnold Palmer tea products.”

Dean Foods sells products under more than 50 local and regional brands. It manufactures products in more than 100 facilities in 40 states and employs more than 26,000 people.

Stater Bros is the largest privately owned supermarket chain in Southern California, with annual sales in 2007 of $3.7 billion. The company currently operates 167 full-service supermarkets in the six Southern California counties of San Bernardino, Riverside, Orange, Los Angeles, San Diego, and Kern.