Blue Diamond Says Confidence is Key to Future Market Stability
Total global consumption rose by 50 percent in the Middle East; 32 percent in Eastern Europe; 24 percent in Western Europe; 20 percent in Asia; and seven percent in the United States, the largest single almond market.
24/11/08 Building and maintaining market confidence is key to maintaining California almond industry success according to Blue Diamond President and CEO, Doug Youngdahl. 2007-08 record industry shipments exceeded the previous year by 18 percent. This helped Blue Diamond to achieve record sales of $711 million, Youngdahl told the cooperative's grower-owners at their 98th annual meeting.
Total global consumption rose by 50 percent in the Middle East; 32 percent in Eastern Europe; 24 percent in Western Europe; 20 percent in Asia; and seven percent in the United States, the largest single almond market. California almonds are the state's largest food export valued at nearly $3 billion.
Blue Diamond's share of the record 2007-08 crop grew faster than for the industry, allowing the cooperative to meet its tonnage objective ahead of schedule. Blue Diamond also gained in market share. Its branded retail business doubled in three years; tripled in five; and quadrupled after six years! "Our Blue Diamond brand has driven U.S. snack nut business growth over the last six years, averaging over 25 percent annually," says Youngdahl. "With 21 percent of all meals being labeled as snacks, snacking is fast becoming America's 'fourth meal' of the day," he adds.
Blue Diamond's natural foods business is also booming with Almond Breeze leading the non-dairy almondmilk sales category. 2007 fiscal year sales for Almond Breeze increased by 32 percent versus the previous year. A new refrigerated line of almondmilk products is expected to add to this success in 2009. The product is currently sold in aseptic packaging that does not require refrigeration until opened.
Blue Diamond partly attributes the growth of global almond consumption to the nutritional profile of almonds as a whole food that can help to maintain a healthy heart, assist with weight loss, lower the risk of diabetes, inhibit tumor cell growth and lower the risk of Alzheimer's disease. Last year, almonds led by 26 percent as an ingredient in all new food products. The category of new food products increased by 14 percent, while usage of nuts as ingredients increased by 16 percent.
Looking ahead to a third record crop in 2008-09 of an estimated 1.5 billion pounds (nine percent above last year), California almond consumption is expected to continue to climb. However, this prediction comes with caveats that include a water shortage that could affect future crop size and kernel sizes that will require creative new market development. A strengthening dollar could also affect global buying power as it costs customers more in their currency to convert to dollars to purchase almonds. "No one knows how long it will take," concludes Youngdahl, "for the complex solutions proposed to strengthen the economy, restore financial stability, resolve the energy crisis, adjust real property values or make industries more competitive, to triumph over these uncertainties." "What we do know is that for the process to begin, confidence must first be restored. This is a lesson learned well by the almond industry," concludes Youngdahl.
