Diamond Launches Emerald Harmony Produce Snack Line

09/08/07 Diamond Foods, Inc., a leading branded food company specializing in processing, marketing and distributing culinary nuts and snack products, announced the introduction of a full line of Emerald Harmony brand snacks that will be sold in retail produce departments. National distribution will begin late this summer for three dozen products packaged in convenient, resealable bags with new graphics and marketed to consumers seeking wholesome snack alternatives.

"With the growth of nutrition awareness, the latest research shows a consumer trend toward fresh, nutrient-rich foods that are less processed," said Michael J. Mendes, president/CEO, Diamond Foods. "These consumers look to the produce department for a variety of fresh products, including healthy, non-perishable snack choices like those from Emerald Harmony."

Diamond Foods acquired certain assets of Harmony Foods, a snack manufacturer, and its strategically located Midwest manufacturing facility in 2006. The Emerald Harmony brand will benefit from Diamond's product development and produce expertise, marketing resources and supply chain capabilities. The new packaging brings Harmony under the umbrella of Emerald, the company's three-year-old snack brand, which has achieved distribution in 84% of U.S. grocery stores and, according to Hall & Partners research, has gained brand awareness of 85%.

"Our Emerald Harmony line will leverage Diamond's 95-year heritage as a leading processor and marketer of fresh, natural culinary and inshell nuts, as well as its snack category experience, to drive incremental sales in produce departments," said Mendes. "The Diamond Foods portfolio is tailored for three in-store locations: Diamond of California culinary nuts in the baking aisle, Emerald snacks in the snack aisle and Emerald Harmony, as well as Diamond inshell nuts, in the produce aisle."

Emerald Harmony offers a full line of great-tasting, wholesome and convenient "real food" snack products within four growing segments: nuts and seeds, trail/snack mixes, dried fruits and sweet snacks. The enhanced product line represents a combination of the following:

-- Traditional Harmony products such as Spicy Southwest Snack Mix, Dried Pineapple and Vanilla Yogurt Raisins
-- Reformulated/improved products such as Original Trail Mix and Deluxe Fruit 'n Nut Trail Mix
-- New offerings such as RaisinBerry Nut Trail Mix, Pistachios (inshell) and Sunflower Seeds (inshell)

Over the past year, produce snacks have enjoyed a dollar sales increase of approximately 8%, based on IRI InfoScan statistics, which is approximately four times the growth rate of overall grocery store sales.