Nuts For Almonds: Innovation Key To Blue Diamond's Growing Success

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SACRAMENTO (CBS13) - Almonds are one of the most popular products on store shelves these days, and the industry's profits are skyrocketing for companies such as Blue Diamond Growers here in Sacramento.

So why are consumers suddenly going nuts over almonds?

Blue Diamond sits at 16th and C Streets in Sacramento and has been processing almonds since 1910; but Consumer Products Division General Manager John O'Shaughnessy says business has sped up big time in the past decade.

"The almond industry is one of California's greatest economic success stories," he said.

Success might be an understatement. Just look at how Blue Diamond's revenue has climbed over the years, from $775 million in 2010 to $825 million in 2011. The company broke the billion dollar mark in 2012, and then hit $1.2 billion this year.

Almonds are nothing new. So, why are the sales numbers going totally nuts?

"Innovation is the one word that Blue Diamond feels describes the organization more than any other," said O'Shaughnessy.

Another term worth learning is "value-added." It means products that go beyond your basic raw or slivered almonds. Blue Diamond now has over 25 flavors of almonds, a family of almond milks, and almond-based crackers called "Nut Thins."

Ten years ago, you'd walk through the store and find just two or three Blue Diamond products on shelves.

"Currently, on average, we have between 25 and 30 items on supermarket shelves in the United States," said O'Shaughnessy.

The Almond Innovation Center is where Blue Diamond's latest and greatest ideas are born.

"We're never bored. Every day is something different," said Director of Research and Development Michael Stoddard.

Stoddard is the brain behind things like Almond Breeze, and wasabi and soy almonds.

"Actually, it gives me a sense of pride knowing that something I developed is on the shelves, and people enjoy it," he said.

Six years ago, there were just two food scientists at the company. Now, Stoddard is part of a seven-man team, helping each other come out of their shell -- always working on the next new almond product.

"We come up with at least half a dozen new products every year," said Stoddard.

Blue Diamond says the health benefits of almonds -- combined with the public's need for dairy or gluten alternatives -- has fueled the fire for new products.

It's a fine line to walk O'Shaughnessy says, since on-average just one in 10 new grocery products in the U.S. succeeds.

"Our batting average is almost the inverse of that. About nine out of 10 of our new products are successful," said O'Shaughnessy.

It takes six to 18 months to develop a new product and get it on the market. It's a tedious process filled with staff and consumer testing.

Stoddard and his team spend hours tweaking products after getting feedback.

"We actually did for Almond Breeze. We had a lot of back and forth to get the formulas correct," he said.

So what's next on the horizon?

"We have many future plans beginning with this spring," said O'Shaughnessy. "But if I told you, I'd have to kill you afterwards."

Blue Diamond is a co-op, owned by half of the state's almond growers. They produce 80-percent of the world's almonds, which is California's largest food export.

Blue Diamond's success and growth allowed it open a new plant in June. The new Turlock location instantly created a hundred jobs. The manufacturing and processing plant is slated to add more than 300 jobs within the next 10 years.