State orders end to bottle-buying
ST. PAUL — The state agriculture department has ordered competitors of Don Dannheim’s New Ulm Dairy to stop buying glass milk bottles on or before Tuesday.
Commissioner Jon Wefald announced the action Friday.
He said letters were being sent to Oak Grove Dairy of Norwood and the supermarkets in New Ulm who “are evidently buying his (Dannheim’s) half-gallon bottles on the open market.”
Wefald said the letters stated in essence,”We believe the purchase of these bottles constitutes an attempt to lessen, restrain or impair the New Ulm Dairy sale of selected dairy products.”
The letters order the practice stopped on or before Tuesday, Feb.3.
THE NEXT MOVE will be up to Oak Grove and the grocery stores who have made the offer, Wefald said.
If they stop the practice that will be the end of the state investigation,he said. If they don’t stop, the state will see what the competitors’ responses are and develop its own case further.
OAK GROVE had offered to accept any glass returnable milk bottles from its New Ulm grocery store customers for money or in place of deposit on Oak Grove plastic returnable containers.
Gibson’s, Madsen’s and Hy-Vee in turn ran newspaper ads passing on to consumers the Oak Grove offer.Red Owl offered in its ad to accept glass returnable milk bottles in lieu of a 50-cent deposit on Oak Grove returnable plastic bottles.
“WE’RE VERY concerned that one manufacturer and several chains are possibly engaging in a retaliatory move to injure Mr. Dannheim’s business,” Wefald said.”On its face it looks as if this is an attempt to corner the New Ulm bottle market.”
Wefald continued, “It looks to us like it’s an attempt to reduce or eliminate Mr. Dannheim’s New Ulm Dairy from the New Ulm milk market.
“These kind of tactics seemingly taking place, we feel, are not fair to Mr. Dannheim and are clearly contrary to the spirit of the dairy industry unfair practices act,” he said.
“The whole point of that law is to protect and promote independent businessmen and make sure they’re allowed to stay in business,” he said.
WEFALD DENIED his department was taking sides on the issue.
He said the state action was the result of an “initial analysis” of the situation. The supermarkets and Oak Grove have the right to respond to the order if they don’t agree to follow it, he noted

