THE 2005/2006 OUTLOOK FOR NUTS AND SEEDS (With Long-Term Forecasts Through 2013)

TABLE OF CONTENTS

SECTION I: EXECUTIVE OVERVIEW

Analysis:

The Market

Market Leaders

Consumption Patterns

New Products

Tables:

U.S. Manufacturers Sales of Nuts and Seeds in Relation to U.S

Manufacturers Sales of Snack Foods

Per Capita Consumption of Peanuts

Per Capita Consumption of Tree Nuts, by Type

Number of New Products Introduced in the U.S. Market for Nuts and Seeds

SECTION II: THE U.S. MARKET FOR NUTS AND SEEDS

Analysis:

Overview

U.S. Manufacturers Sales of Nuts and Seeds

Congress Passes Law Requiring Clear Listing of Problematic Ingredients

Tree Nut Supply and Utilization

Producer Prices

Media Expenditures

Diamond of California Boosts Advertising Budget

Tables:

U.S. Manufacturers Sales of Nuts and Seeds:

Graph: Total

Total

By Type

U.S. Tree Nut Supply and Utilization

Materials Consumed in the U.S. Roasted Nut and Peanut Butter Industry, by Type

Producer Price Trends for Nuts and Seeds:

Total

By Type

Media Expenditures for Nuts, Seeds, and Corn Nuts:

Total

By Company and Brand

SECTION III: FACTORS AFFECTING DEMAND FOR NUTS AND SEEDS

Analysis:

Overview

The Atkins and South Beach Diets

Health Benefits

Peanut Allergies More Common

The Economy

Consumer Spending on Nuts

Tables:

Percentage of Americans Who Are Overweight and Obese, by Age

Percentage of Americans 20-74 Years of Age Who Are Obese, by Gender, Race, and Hispanic Origin

Percentage of Children and Adolescents Who Are Obese, by Gender Percentage of Americans Who Are Obese, by State

Percentage of American Adults on Diets

U.S. Gross Domestic Product

U.S. Gross Private Domestic Investment

U.S. Industrial Production Index

U.S. Disposable Personal Income

U.S. Per Capita Disposable Personal Income

U.S. Personal Consumption Expenditures

U.S. Per Capita Personal Consumption Expenditures

Consumer Confidence Index

Average Annual Household Expenditures on Nuts, by Selected Demographic Characteristics

U.S. Resident Population Trends and Projections:

Total

By Age Group

Age Distribution

Population and Household Trends

By Region

By State

Distribution, by State

SECTION IV: DISTRIBUTION TRENDS IN THE U.S. MARKET FOR NUTS AND SEEDS

Analysis:

Overview

Retail Sales of Nuts, Seeds, and Corn Nuts

Breakdown of Retail Sales by Type of Outlet

Vending Machine Sales of Candy, Snacks, and Confections

Convenience Store Sales of Salty Snacks

Private-Label Retail Sales of Nuts

Leading Selling Brands

Almond Recall

SECTION I: EXECUTIVE OVERVIEW

Analysis:

The Market

Market Leaders

Consumption Patterns

New Products

Tables:

U.S. Manufacturers Sales of Nuts and Seeds in Relation to U.S. Manufacturers Sales of Snack Foods

Per Capita Consumption of Peanuts

Per Capita Consumption of Tree Nuts, by Type

Number of New Products Introduced in the U.S. Market for Nuts and Seeds

SECTION II: THE U.S. MARKET FOR NUTS AND SEEDS

Analysis:

Overview

U.S. Manufacturers Sales of Nuts and Seeds

Congress Passes Law Requiring Clear Listing of Problematic Ingredients

Tree Nut Supply and Utilization

Producer Prices

Media Expenditures

Diamond of California Boosts Advertising Budget

Tables:

U.S. Manufacturers Sales of Nuts and Seeds:

Graph: Total

Total

By Type

U.S. Tree Nut Supply and Utilization

Materials Consumed in the U.S. Roasted Nut and Peanut Butter Industry, by Type

Producer Price Trends for Nuts and Seeds:

Total

By Type

Media Expenditures for Nuts, Seeds, and Corn Nuts:

Total

By Company and Brand

SECTION III: FACTORS AFFECTING DEMAND FOR NUTS AND SEEDS

Analysis:

Overview

The Atkins and South Beach Diets

Health Benefits

Peanut Allergies More Common

The Economy

Consumer Spending on Nuts

Tables:

Percentage of Americans Who Are Overweight and Obese, by Age

Percentage of Americans 20-74 Years of Age Who Are Obese, by Gender, Race, and Hispanic Origin

Percentage of Children and Adolescents Who Are Obese, by Gender

Percentage of Americans Who Are Obese, by State

Percentage of American Adults on Diets

U.S. Gross Domestic Product

U.S. Gross Private Domestic Investment

U.S. Industrial Production Index

U.S. Disposable Personal Income

U.S. Per Capita Disposable Personal Income

U.S. Personal Consumption Expenditures

U.S. Per Capita Personal Consumption Expenditures

Consumer Confidence Index

Average Annual Household Expenditures on Nuts, by Selected Demographic Characteristics

U.S. Resident Population Trends and Projections:

Total

By Age Group

Age Distribution

Population and Household Trends

By Region

By State

Distribution, by State

SECTION IV: DISTRIBUTION TRENDS IN THE U.S. MARKET FOR NUTS AND SEEDS

Analysis:

Overview

Retail Sales of Nuts, Seeds, and Corn Nuts

Breakdown of Retail Sales by Type of Outlet

Vending Machine Sales of Candy, Snacks, and Confections

Convenience Store Sales of Salty Snacks

Private-Label Retail Sales of Nuts

Leading Selling Brands

Almond Recall

Tables:

Product Preference Study 2004: Nuts

Retail Sales of Nuts, Seeds, and Corn Nuts

Distribution of Retail Volume Sales of Nuts, Seeds, and Corn Nuts, by Type of Outlet

Supermarket Sales of Nuts, Seeds, and Corn Nuts

Supermarket Sales of Nuts, Seeds, and Corn Nuts, by Type

Drug Store Sales of Nuts, Seeds, and Corn Nuts

Other Retail Outlet Sales of Nuts, Seeds, and Corn Nuts

Vending Machine Sales of Candy, Snacks, and Confections

Vending Machine Sales of Nuts

Product Mix of Convenience Store Sales of Salty Snacks

Private-Label Retail Sales of Nuts:

Total

Dollar Sales, by Type

Unit Sales, by Type

Leading Selling Brands of Snack Nuts, Seeds, and Corn Nuts

Retail Dollar Market Shares in the Sunflower/Pumpkin Seed Market, by Brand

Retail Dollar Market Shares in the Corn Nut Market, by Brand

SECTION V: FOREIGN TRADE OF NUTS AND SEEDS

Analysis:

Overview

Leading U.S. Export Destinations

China Goes Nuts for U.S. Tree Nuts

U.S. Exports of Peanuts

U.S. Exports of Other Nuts and Seeds

Leading U.S. Import Sources

U.S. Imports of Coconuts, Brazil Nuts, and Cashew Nuts

Tables:

U.S. Balance of Trade for Nuts, Seeds, and Mixtures

U.S. Apparent Consumption of Nuts, Seeds, and Mixtures

U.S. Exports of Nuts, Seeds, and Mixtures as a Percentage of U.S. Manufacturers Sales

U.S. Imports of Nuts, Seeds, and Mixtures as a Percentage of U.S. Apparent Consumption

U.S. Exports, by Country of Destination:

Coconuts, Brazil Nuts, and Cashew Nuts, Fresh or Dried

Other Nuts, Fresh or Dried

Peanuts (Groundnuts), Prepared or Preserved, Not Elsewhere Specified or Included, Including Peanut Butter

Other Nuts and Seeds, Including Mixtures, Prepared or Preserved, Not Elsewhere Specified or Included, Including Peanut Butter

U.S. Imports, by Country of Origin:

Coconuts, Brazil Nuts, and Cashew Nuts, Fresh or Dried

Other Nuts, Fresh or Dried

Peanuts (Groundnuts), Prepared or Preserved, Not Elsewhere Specified or Included, Including Peanut Butter

Other Nuts and Seeds, Including Mixtures, Prepared or Preserved, Not Elsewhere Specified or Included, Including Peanut Butter

SECTION VI: STRUCTURE OF THE U.S. ROASTED NUT AND PEANUT BUTTER INDUSTRY

Analysis:

Overview

Payroll and Material Costs

Employment Trends

New Capital Expenditures

Blue Diamond Growers Begins Operating a New Bottling Line

Number of Manufacturing Facilities

Explanation of Terms

Tables:

The U.S. Roasted Nut and Peanut Butter Industry:

Operating Structure

Gross Operating Margin

Value Added by Manufacture

Vertical Integration Index

Employment Structure

Total Labor Costs

Average Hourly Earnings of Production Workers

Cost of Living Index for Production Workers

Labor Productivity

Indexes of Real Labor Productivity

New Capital Expenditures

Plant vs. Equipment Expenditures

Ending Inventories

Number of Manufacturing Facilities

Number of Establishments, by Employment Size Class and by State

Employment Patterns, by State

Plant Capacity Utilization Rates

The Plant Managers Workbook:

How to Use This Section

Gathering Your Data

Developing Your Ratios

How Does Your Plant Stack Up?

SECTION VII: COMPANY PROFILES

Introduction

Ann s House of Nuts:

Overview

Products

Blue Diamond Growers:

Overview

History

Products

Facilities and Employees

Diamond of California:

Overview

Products

John B. Sanfilippo & Son, Inc.:

Overview

Financial Performance

Snack and Baking Nuts

Facilities and Employees

Financial Summary and Analysis

Kraft Foods Inc.:

Overview

History

Financial Performance

"Planters"

"Corn Nuts"

Facilities and Employees

Financial Summary and Analysis

Lance, Inc.:

Overview

History

Financial Performance

Nuts and Seeds

Facilities and Employees

Financial Summary and Analysis

Mauna Loa Macadamia Nut Corp.:

Overview

Products

Distribution

Facilities

Meherrin Agricultural & Chemical Co. (Hampton Farms):

Overview

Products

Distribution and Facilities

Paramount Farmers, Inc.:

Overview

Products

Facilities and Employees

SECTION VIII: DIRECTORY OF SELECTED U.S. PRODUCERS OF NUTS AND SEEDS

Introduction

Directory.