Blue Diamond almond sales drop 17%. Here’s how its Valley plants are wooing consumers
Blue Diamond Growers reported a 17% decline in sales, hampered by weak nut prices and inflation pressure on consumers.
The Sacramento-based cooperative had $1.33 billion in revenue for the fiscal year ending Aug. 25, which mainly is sales from the 2022 harvest. The previous year brought $1.6 billion.
Low nut prices strained the budgets of the farmers who own Blue Diamond. But it continues to employ about 1,600 people at plants in Turlock, Salida and the capital.
The business announced the results at its 113th annual meeting, held Nov. 15 at Modesto Centre Plaza. It was the first for CEO and President Kai Bockmann, who succeeded the retiring Mark Jansen in January.
“It’s our pain as well,” Bockmann told about 1,200 growers and other attendees. “At the same time, these challenges have propelled us to dramatically pivot and to take quick action to drive our growth for the future.”
Blue Diamond is the largest player in the California almond industry, which supplies about 80% of the world demand. It does not disclose its share of the tonnage but does have to report finances as a federally sanctioned cooperative.
It markets snack nuts under the Blue Diamond label, as well as Almond Breeze milk and Nut Thins crackers. Much of the volume gets minimal processing and is then sold to makers of cereal, energy bars, candy and other items around the globe.
California almonds had a two-decade run of strong prices, aided by research on cancer prevention and other health benefits. Grower prices stayed above the roughly $2 a pound needed to cover their expenses.
A bumper crop in 2020 brought prices below that level. The industry also has dealt with tariffs in key Asian markets and shipping backlogs at ports.
Then came the 2022 inflation spike. Almonds might have been cheap as a raw material, but the public trimmed its spending on nonessential items in general.
“Consumers often chose to trade down to lower-cost alternatives and smaller package sizes to reduce their overall grocery spend, which negatively affected volume,” the report said.
The meeting highlighted new items that could help Blue Diamond build back. Almonds dusted with chile/lime seasoning are especially popular in Canada. Brazilians use a nut-based cream in their cooking.
Blue Diamond is the leading producer of almond milk, one of several plant-based alternatives to dairy. It is adding yogurt and cheese to the mix.
The cooperative was founded in Sacramento in 1910 and now has about 3,000 grower-owners.
“Without question, it has been a challenging year,” said board Chairman Dan Cummings, a grower near Chico, “but the loyalty and leadership demonstrated by our board, combined with the resilience of our growers and dedication of Blue Diamond employees, will allow us to overcome the challenges together.”
