Yahoo Finance Diamond Foods Opens Innovation Center in Salem, Oregon - Analyst Blog
Diamond Foods Inc. DMND has inaugurated its new innovation center in Salem, OR, next to Kettle Brand’s potato chip facility. This innovation center exhibits the company’s determination to regain its lost market share through expansion of existing product lines and introduction of new products in the United States.
Covering a space of approximately 7,000 square feet, the new two-story innovation center accommodates everything related to innovation from product conception to production of samples and their testing.
To conduct these activities, the center has an R&D kitchen and lab where product samples are developed and preparation processes are stimulated. It also houses a concept room for generation of new product ideas and customer meetings, along with a sensory evaluation center for live testing of products with customers.
The center will be responsible for developing new products for all of Diamond Foods’ brands including Kettle Brand, Pop Secret, Emerald, Nuts and century-old Diamond of California. The company’s dedicated team running the center will include sensory personnel, food scientists, and packaging, marketing and regulatory experts. This team will enable the company to develop new products in accordance with customer needs and facilitate their swift launch into the market.
The innovation center has been designed in the shape of a majestic Oak tree by ZGF Architects LLP. The building is well planned to make the most of natural surroundings, like efficient utilization of daylight, along with an energy-conscious ventilation system and other features that reduce energy consumption.
In another initiative to improve market share, the company acquired 51% stake in Yellow Chips, a manufacturer of first-rate vegetable and organic potato chips. This acquisition is expected to enhance the company’s position in the growing vegetable chips category in Europe and the U.K.
The company’s branding strategy also includes a marketing program that is designed to build consumer awareness and earn their loyalty through targeted TV advertising, unique packaging and in-store merchandising. Further, in order to boost sales, management is striving to widen the distribution network, expand retail channels, especially in the club and mass merchandiser areas, and increase sales within the existing channels.
We believe that the company’s strategic investments in product innovation and brand building will increase its customer base and profitability. Diamond Foods currently has a Zacks Rank #3 (Hold).
Key Picks from the Sector
Better-ranked stocks in the same industry include Cal-Maine Foods Inc. CALM and Post Holdings Inc. POST with a Zacks Rank #1 (Strong Buy), and Campbell Soup Co. CPB, carrying a Zacks Rank #2 (Buy).
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DIAMOND FOODS (DMND): Free Stock Analysis Report
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