Every pouch of Breakfast on the go! ™ is packed with the natural energy of Emerald Nuts and bursting with wholesome ingredients. It's the perfect mix of Emerald Nuts, dried fruit, and crunchy granola clusters to start your day.
|Diamond Foods Provides Business and Brand Performance Updates|
Diamond and its advisors are making substantial progress strengthening the Company's financial reporting and control capabilities and restating Diamond's consolidated financial statements for fiscal years 2010 and 2011. The timing of the restatement has not yet been finalized.
"With regard to its core business, Diamond's management team is sharply focused on optimizing the strategy, performance and execution of each of its product lines," added
Extensive efforts are underway to reset the Company's walnut activities and to restore and strengthen Diamond's relationships with growers. Increased global demand for walnuts has driven pricing to record levels of at least 35 percent higher than for last year's crop. Diamond, as it refocuses on its walnut supply, intends to be competitive in its walnut sourcing activities, and expects its walnut-related cost of sales to rise in line with current pricing trends. Diamond is taking pricing action to address this cost issue.
Diamond's snack brands have continued to deliver strong retail sales, with share gains for Emerald, Pop Secret and Kettle in the most recent 12-week
Brand YoY Growth Category YoY Growth Market Share Change Emerald +29% +3% + 200 basis points Pop Secret +6% +2% +110 basis points Kettle U.S. +8% +1% + 20 basis points Diamond of California +7% +8% - 30 basis points
Sources: Nielsen U.S. Food, Drug and Mass dollar sales for 12-week period ended
"Despite the challenges we have faced over the past several months, our brands continue to perform well and we believe the steps we are taking will best position Diamond for the future," continued
Diamond expects to update its outlook for fiscal 2012 after its financial restatement is completed.
Note regarding forward-looking statements
Statements in this press release that relate to future results, events and expectations, including statements about our sales performance and future plans, cost of walnuts, the timing of our financial restatement and potential capital transactions, are forward-looking statements that necessarily depend on critical assumptions and are subject to risks and uncertainties. Actual results may differ materially from what we currently expect because of many risks and uncertainties, including: uncertainty about the timing and scope of our financial restatement; risks relating to our credit facility, including compliance with existing debt covenants and obtaining forbearance from our lenders; increase in the cost of debt, ability to raise additional capital, risks relating to litigation, relations with growers; availability and cost of walnuts and other raw materials; increasing competition and possible loss of key customers; and general economic and capital markets conditions. Risk factors affecting our business and prospects are described under "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended July 31, 2011, and under "Additional Risk Factors" in our Current Report on Form 8-K filed with the
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