Kettle will give some sparkle to Diamond portfolio

By: Dean Best - 1 March 2010 18:06

Diamond Foods' move to buy premium crisp maker Kettle Foods played a part in driving down the US snack firm's shares on Friday (26 February) amid investor fears over how the acquisition would be funded.

Shares in Diamond dropped 10% as the company uses an equity offering to fund the purchase of Kettle.

However, as our comment piece argued today, Kettle has the potential to add some long-term, branded sparkle to a company that historically has derived most of its revenues from own label.