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Margin EnhancementValue-Added Sales Volume$27.3m$37.3m$10mAnnual$ Growth+35%2-YearGrowth13.2%$13.1m$13.1m$14.2m$14.2m$14.2m1-3%2010 2011 2012 PlanCrop Year ImpactIndustryAverageCY2011enhancement. With this focus, Blue Diamond employees have been able to achieve a winning return for our growers.Last year I told our Blue Diamond team, “Go find another $10 million in margin enhancement for our growers!” And theyreally got their good going! They came back with $13 million in savings through improved manufacturing yields, fastermanufacturing lines and lower costs. The best part about our margin enhancement initiative is compounding. Eachyear’s successes are repeatable and build on the previous years. Our $13 million in new annual savings was built on topof the $14 million in savings from the previous year giving Blue Diamond a two-year annual impact of $27 million. I sopassionately believe in this program that, once again, I told our team, “Go find another $10 million in savings for ourgrowers!”Our strategy of growing value-added almond sales was built on the understanding that these are Blue Diamond’s mostprofitable sales and the vision that we should be best in the world in our consumer and ingredient businesses. Last year, weachieved 13 percent growth in our value-added business, bypassing the food industry average growth of 1 to 3 percent. Overthe last two years, our value-added ingredient businesses have grown by 35 percent, effectively consuming our pollinizervarieties in higher-profit sales.“Good” Campaign Connects with ConsumersAs part of our value-added growth strategy, we have significantly increased our investments in advertising, starting with BlueDiamond’s advertising during the Olympics. The purpose of this advertising is to build our Blue Diamond brand by creating anemotional connection between consumers who want to live their lives to the fullest and our wholesome products. We wantconsumers to believe that Blue Diamond gives them the vitality to be at their best. Simply said, Blue Diamond helps you get yourgood going!There is an incredible amount of work behind good advertising and also some great stories. Following are some of my favoritelittle-known numerical facts about Blue Diamond’s Olympic ad. You can watch our ad at www.youtube.com/BlueDiamondGrowers.1 … London Olympics ranking of all-time most watched TV events in US3 … The number of hours it took before the girl on the bike magically caught the almond can outof thin air4 … The number of cans eaten in one hour by the three guys riding in the back seat during theroad trip scene6 … As in Six Flags Discovery Kingdom in Vallejo where the roller coaster scene was shot. We areproud the entire commercial was filmed in northern California at places such as Stinson Beach.continued on next page »NOVEMBER | DECEMBER 2012 Almond Facts 7