When Dean Foods announced last month that it is merging its branded divisions, to form a wholly-owned subsidiary headed by White Wave executive Steve Demos, one of the big questions was what is to happen to Marcy, the CEO of Horizon Organic.

"I will stay involved in businesses that are offering premium value-added product," Marcy tells Dairy Foods. "It may not be just organic, but organic would be a part of it."

A bigger question may be what will happen to Horizon Organic. Dean became a partner in Horizon several years ago before acquiring 100% last year. As many of the top natural and organic companies have been bought out by larger, mainstream food companies, some question whether the original mission of those companies can be maintained.

"We haven't sold out, Dean Foods has bought in," Marcy says.

The new subsidiary will be comprised of Horizon Organic, White Wave and the Dean Branded Group (formerly the Morningstar Foods division), which includes Hershey's, Jakada, and Sun Soy brands. The new subsidiary will be based in Boulder, Colo., where Silk and Horizon were founded.