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Diamond Foods in Play

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Diamond Foods is reviewing creative duties on its line of snack products amid a split with lead agency Goodby, Silverstein & Partners, the company has confirmed. Account revenue is estimated at about $2 million.

Media chores at Omnicom Group's PHD in San Francisco are also in play, per sources, though neither agency nor Diamond provided immediate confirmation.

Sources said that Goodby and Francisco-based Diamond are splitting because of a conflict with another Goodby client: the Frito-Lay division of PepsiCo. Omnicom's Goodby in San Francisco handles creative duties on Frito-Lay snack brands such as Doritos, Cheetos and Tostitos, and in March, Diamond, a nuts and popcorn marketer, acquired chip maker -- and Frito-Lay rival -- Kettle Foods.

Diamond's other products include its namesake nuts, Emerald nuts and Pop Secret popcorn. Major media spending on those brands exceeded $10 million last year, up from nearly $7.5 million in 2008, according to Nielsen. Those figures don't include online spending.

Goodby had handled Diamond since 2003. Some of the Omnicom Group shop's work broke during the Super Bowl, including a 2007 spot featuring singer Robert Goulet.

In a statement, Diamond described Goodby as a "strong partner," adding, "We value the role they have played in the growth of our brands: Diamond of California, Emerald and Pop Secret. We are very pleased with Goodby's creative efforts, which include award-winning and critically acclaimed work."

Ark Advisors in Playa del Rey, Calif., is managing the process, said sources. Ark did not return calls.

More than a dozen agencies have replied to a request for proposals from Diamond, and, based on the replies, Diamond will narrow the field to about six to eight shops, according to sources. In the end, a handful of shops will pitch the business.

Diamond is expected to conclude the process by August.