Kimberley L. Kleinhampl
University of the Incarnate Word
Diamond Foods is a company in the processed and packaged goods industry. The company was founded in 1912 and held privately until the initial public offering in July 2005. The current President and Chief Executive Officer is Michael J. Mendes; Mendes served as Diamond’s Vice President of International Sales and Marketing from 1991 through 1997, when he was promoted to his current position (Diamond Foods, 2011). Steven M. Neil is has been the Executive Vice President, Chief Financial and Administrative Office since he joined the company in early 2008. Prior to accepting the position with Diamond, Neil served as Chief Financial Officer for two global companies in the eye care/women’s health care industry (Diamond Foods, 2011). Diamond currently competes in approximately 100 countries globally; chief competitors include Unilever, General Mills, and Kellogg (Yahoo Finance , 2011).
Operations include marketing and sales of snack foods and culinary products (Diamond Foods, 2010). Diamond’s brands are Kettle Brand Potato Chips, Emerald Premium Snacks, Pop Secret, and Diamond Culinary Nuts, and sales are heavily reliant on a few key customers.
Diamond does not directly grow any of the produce used in it’s products; nuts and other ingredients such as corn kernels and potatoes are obtained from independent growers either under contract or on the open market. According the 2010 Annual Report, Diamond’s operations strategies include the following: * Increase market share in the snack industry
* Improve margins
* Expand and improve position in distribution channels
* Pursue additional growth opportunities
In keeping with these stated goals, Diamond has pursued a path of aggressive growth and acquisitions over the past several years. The Emerald brand was launched in 2001, followed by acquisitions from Harmony Foods in 2006, the acquisition of...