Diamond Foods

Did You Know?

• In 1950, Diamond became the first nut company to advertise on TV.
• In 1997, Japan became Diamond’s number one export market for shelled walnuts.

History

Diamond Foods began in 1912 as Diamond Walnut Growers, Inc., a cooperative owned by California walnut growers. In 1919, it became the first nut producer to run a national ad campaign. The company started exporting nuts in 1930, and in 1950 it was the first nut company to advertise on television. Operations were consolidated in Stockton, California, in 1956. In 1989, Diamond was the first to use laser sorters in its processing plant to remove shell fragments. By 1997, Japan was its top export market for shelled walnuts. The next year, Diamond introduced a full line of packaged shelled nuts for baking and cooking and became the world’s leading marketer of in-shell nuts. The company changed its name to Diamond of California in 1999. It served as the exclusive nut supplier for the U.S. Olympic teams in 2000, 2002, and 2004. In 2004, J Stone & Son merged with Diamond, and the Emerald Nuts snack line was launched. In July 2005, Diamond of California reorganized as a Delaware corporation and went public under the name Diamond Foods, Inc., trading on NASDAQ as DMND. The company bought Harmony Foods in 2006, gaining a production facility in Indiana. A 2007 Super Bowl ad featuring Robert Goulet was named the top ad by Advertising Age and boosted Emerald sales by 68 percent. Diamond acquired Pop Secret popcorn from General Mills in 2008. By 2009, Emerald held a ten percent share of the U.S. snack nut market in food stores. In 2010, Diamond bought Kettle Foods, a potato chip company with operations in the U.S. and the U.K. In 2011, Diamond and Procter & Gamble announced plans for Pringles to merge with Diamond, with the deal expected to close by June 2012. However, an accounting scandal emerged in 2012, and the Pringles merger was canceled. On January 18, 2013, Diamond shut down its Fishers, Indiana plant, laying off over 100 full-time workers and permanently ending the Harmony brand. In 2014, the SEC settled the accounting scandal case, also reaching a separate settlement with former CEO Michael Mendes; litigation with former CFO Steven Neil remained open. In 2015, the SEC settled with Steven Neil.

Diamond Foods brands

Diamond Foods had five product lines. Potato chips were sold under the Kettle Brand label in the United States and Kettle Chips brand in the United Kingdom, available in various flavors, styles, and package sizes. Snack nuts were sold under the Emerald brand, including trail mix, roasted, glazed, and flavored snack nut products, with 100 Calorie pack sizes. Popcorn, in kernels and various flavors of microwave popcorn, was sold under the Pop Secret brand, including Homestyle microwave popcorn and items such as 94% Fat Free and 100 Calorie snack size. In-shell and culinary nuts were sold under the Diamond of California brand, with in-shell nuts typically sold in grocery store produce sections during the winter holiday season and culinary nuts sold in the baking aisle. North American and International Ingredient and Food Service products included Diamond of California brand in-shell nuts, shelled and processed nuts, glazed nuts, and custom-processed nuts for food processors, restaurants, bakeries, and food service companies. Each snack product line had “better-for-you” options including 100-calorie packs, 94% Fat Free popcorn, baked potato chips with 65% less fat than traditional potato chips, and a reduced fat chip with 40% less fat.