Auction ends era for Floresville dairy

August 7, 2018 GMT

Grupo Lala, the Mexican owner of Promised Land Dairy, is moving its Floresville operations to a more modern facility in Colorado Springs, Colorado.

“This consolidation allows Promised Land to better meet the needs of retailers and consumers by offering an extended shelf life product (ESL) in its nationwide markets,” the company said in an emailed statement. The Floresville plant did not produce ESL products.”

Lala acquired the plant with its $246 million purchase of Laguna Dairy in 2016. The acquisition allowed Lala, which now has about $3.4 billion in revenue, to target Hispanics in the U.S. with products including yogurt smoothies, Borden cultured products and Nordica cottage cheese. The purchase included a plant in Omaha, Nebraska as well as the plants in Floresville and Colorado Springs.

San Antonio businessman James Leininger opened Promised Land in 1987, touting the dairy’s use of Jersey cow milk to create exotic blends like Midnight Chocolate and Holiday Nog.

The plant closed in April.

Floresville Mayor Cecelia Gonzalez-Dippel said the plant manager called her a few months back to say the company was leaving town.

“We hated to see them go,” she said. “Promised Land has been in our areas quite a while now. And we love the milk.”

But she said she wasn’t surprised.

“Throughout probably the last 10 years they’ve been downsizing and downsizing,” she said.

Pennsylvania-based Harry Davis & Co. is hosting an online auction of major dairy systems, pumps, compressors and other products Tuesday, Aug. 7 through Thursday, Aug. 9.