It is the retailer’s first foray into food processing in the US. This is bad news for US processor Dean Foods, which supplies Wal-Mart’s in-house milk. Wal-Mart confirmed that Dean Foods would continue to supply some of its in-house white and chocolate milk to other Wal-Mart supermarkets and Sam’s Club membership-based wholesale stores. The retail giant is the largest grocer in the US with at least 5000 locations. Australian supermarket giant Woolworths will be sitting up and taking notice.