Diamond Foods, Inc., which has been benefiting from the growth of salty snacks in general and its own strategic moves to maximize its branded retail business, is now looking to further that momentum with a marketing first: a campaign spanning its Diamond and Emerald nut brands plus its newly acquired Pop Secret brand.

The "Feed Your Fingers" campaign, to run from October through February, will capitalize on the current popularity of finger foods by reaching consumers with recipes and simple entertainment tips that can be used when hosting or attending holiday events.

Diamond has focused for the past year on improving retail distribution of its core branded items and introducing new products, such as Emerald's Sea Salt & Cashews and Cocoa Roast Almonds.

The strategy is hitting the mark. The Emerald brand achieved its highest-ever market share in the 12 weeks ending June 13, exceeding the overall snack nut category's sales gain of 2.7% for the period.

At the end of September, the company reported net sales growth of 7% (to $570.9 million) for its full fiscal '09 (ended in July) -- including a 113% gain in snack sales and a 1% gain in sales of culinary products. Full-year earnings per share shot up to $1.44, versus last fiscal's $0.91. Diamond raised its fiscal 2010 full-year EPS guidance from $1.70 to $1.80, an 18% to 25% increase over fiscal '09.

President/CEO Michael J. Mendes confirmed that given the snack brands' exceptional performance -- with both Emerald and Pop Secret (acquired in fiscal Q1) having exceeded expectations -- Diamond is seeking to continue the momentum through the novel campaign integrating the three brands.

The "Feed Your Fingers" campaign, based on consumer insights, includes a microsite (feedyourfingers.com) offering easy recipes and entertainment tips; a sweepstakes with a grand prize of $10,000; in-store promotional pieces encouraging entries (as well as consumer product purchases, although no purchase is required to enter the sweeps); and PR targeting food-oriented online and print publications. Diamond is also partnering with retailers to hold in-store recipe/entertainment solutions events in supermarkets around the country.

According to a new Packaged Facts report on sweet and salty/savory snacks in the U.S., Information Resources, Inc. data shows the salty snacks segment (potato chips, tortilla chips, pretzels and various corn-based and cheese-flavored products) leading the sweet and salty/savory categories in both growth and market share between 2004 and 2008.

IRI-tracked sales of salty snacks grew from $7.2 billion to $8.1 billion during that period, to account for a 23% share of snacks, compared with candy's growth from $6.6 billion to $7.1 billion and share of 19.9%. Popcorn and rice/popcorn cakes' share declined slightly, from 3.2% to 3.1%.

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